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I thought wealthfront and the like aren't exactly the same type of insurance. They don't put your money in a single account, and if you ever needed the insuranc
by shaklee3 7y ago
I thought wealthfront and the like aren't exactly the same type of insurance. They don't put your money in a single account, and if you ever needed the insurance you have to go through a third party that made a deal with the actual banks.
- acjohnson55 7y agoWith Robinhood, I understand cash is SIPC insured once it hits their systems, and then it is a couple of days until it is deposited in underlying accounts at their program banks, where it is FDIC insured. So it's something to consider when moving large amounts of money. Another thing is that these neobanks have withdrawal amount limits and ATM limits, and so they aren't a great choice for storing emergency funds.
- briandear 7y ago> Another thing is that these neobanks have withdrawal amount limits and ATM limits Every French bank has these limits. I once had a French bank account that limited my debit card to €2500 in purchases in a month — for no good reason other than trying to limit access to my own money. Cash purchases over €1000 are also illegal in France. For the most ridiculous banking rules and limits, France is the place. My chase account in the other hand, I could withdrawal $100k in cash if I wanted. Still have a (high) debit card limit, but I can call them and immediately get it lifted for a specific transaction (such as buying a car.)
- acjohnson55 7y agoYeah, but for the neobanks, it's even more strict. You simply can't access all your money instantly. As far as I can tell, anyhow.