4 ms·

Just looked into them and apparently they are not a bank which I'm guessing means not FDIC insured. That gives me pause...

nahtnam 6y ago
I believe they are also based on BBVA or something similar but they applied for a charter license[1] which I think would allow them to run without any underlying bank. This is what it says at the bottom of their website: > 5 The cash balance in SoFi Money cash management accounts is swept to one or more program banks where it earns a variable rate of interest and is eligible for FDIC insurance. FDIC Insurance does not immediately apply. Coverage begins when funds arrive at a program bank. There are currently six banks available to accept these deposits, making customers eligible for up to $1,500,000 of FDIC insurance (six banks, $250,000 per bank). If the number of available banks changes, or you elect not to use, and/or have existing assets at, one or more of the available banks, the actual amount could be lower. For more information on FDIC insurance coverage, please visit www.FDIC.gov. Customers are responsible for monitoring their total assets at each of the Program Banks to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The deposits in SoFi Money or at Program Banks are not covered by SIPC. [1] https://www.reuters.com/article/us-sofi-bank-charter/fintech-startup-sofi-gets-preliminary-approval-for-u-s-bank-charter-idUSKBN27D27W https://www.reuters.com/article/us-sofi-bank-charter/fintech...
ceejayoz 6y ago
They're FDIC insured, or more accurately, the accounts lie at actual partner banks (SoFi being a fintech layer on top of that) that are FDIC insured. https://www.sofi.com/money/security-and-protection/ https://www.sofi.com/money/security-and-protection/ https://twitter.com/sofi/status/1110706933692981248 https://twitter.com/sofi/status/1110706933692981248

nahtnam 6y ago

I believe they are also based on BBVA or something similar but they applied for a charter license[1] which I think would allow them to run without any underlying bank. This is what it says at the bottom of their website: > 5 The cash balance in SoFi Money cash management accounts is swept to one or more program banks where it earns a variable rate of interest and is eligible for FDIC insurance. FDIC Insurance does not immediately apply. Coverage begins when funds arrive at a program bank. There are currently six banks available to accept these deposits, making customers eligible for up to $1,500,000 of FDIC insurance (six banks, $250,000 per bank). If the number of available banks changes, or you elect not to use, and/or have existing assets at, one or more of the available banks, the actual amount could be lower. For more information on FDIC insurance coverage, please visit www.FDIC.gov. Customers are responsible for monitoring their total assets at each of the Program Banks to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The deposits in SoFi Money or at Program Banks are not covered by SIPC. [1] https://www.reuters.com/article/us-sofi-bank-charter/fintech-startup-sofi-gets-preliminary-approval-for-u-s-bank-charter-idUSKBN27D27W https://www.reuters.com/article/us-sofi-bank-charter/fintech...

ceejayoz 6y ago

They're FDIC insured, or more accurately, the accounts lie at actual partner banks (SoFi being a fintech layer on top of that) that are FDIC insured. https://www.sofi.com/money/security-and-protection/ https://www.sofi.com/money/security-and-protection/ https://twitter.com/sofi/status/1110706933692981248 https://twitter.com/sofi/status/1110706933692981248