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> Per the article, FDIC insurance doesn't cover this because it's a 'neo-bank' and the underlying bank didn't fail. wait ... wat? how do you know something is
by viro 6y ago
> Per the article, FDIC insurance doesn't cover this because it's a 'neo-bank' and the underlying bank didn't fail.
wait ... wat? how do you know something is a "Neo-bank"?
- PascLeRasc 6y agoThis makes me really concerned for the more established companies operating this way like Wealthfront and SoFi. Even Fidelity’s checking account does the same sweep stuff. Does this mean they actually aren’t safe at all?
- viro 6y agoI didn't realize banks like Simple or Chime could basically have "fake FDIC insurance". time to move my shit back to my local credit union.
- joshstrange 6y agoBoth Simple [0] (soon to be closing down) and Chime [1] are FDIC insured. I'm not sure how Beam structured it but I'm not sure if it's the same thing... [0] https://www.simple.com/help/articles/account-info/fdic-insurance https://www.simple.com/help/articles/account-info/fdic-insur... [1] https://help.chime.com/hc/en-us/articles/224459628-Are-Chime-Accounts-FDIC-insured- https://help.chime.com/hc/en-us/articles/224459628-Are-Chime...
- lifeplusplus 6y agoso any neo-bank's consumers can be told the underlying bank didn't fail so they get nothing?