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This makes me really concerned for the more established companies operating this way like Wealthfront and SoFi. Even Fidelity’s checking account does the same s

This 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 ago
I 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 ago
  Both 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 ago
so any neo-bank's consumers can be told the underlying bank didn't fail so they get nothing?