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> What does it mean when they say: "we're not a bank, but we deposit your money in FDIC-insured funds"? it means that "simple"/"banksimple" is not a bank itsel
by noodle 15y ago
> What does it mean when they say: "we're not a bank, but we deposit your money in FDIC-insured funds"?
it means that "simple"/"banksimple" is not a bank itself. you deposit your funds through their interface into actual banks while simple provides an interface to track and visualize your money. thats my understanding, at least. they definitely can't bill themselves as a bank when they aren't one.
- esrauch 15y agoDoesn't that mean that you don't actually get any of the legal protections (insurance and assurances) that comes with keeping your money in a bank or credit union?
- noodle 15y agohttps://www.simple.com/faq/ https://www.simple.com/faq/ > your cash is deposited with our bank partners in FDIC-insured products.
- steve8918 15y agoI still don't get it. When I deposit $1000 into Simple, will I get a statement from Simple or the "banking partner". Can I go directly to the "banking partner" and withdraw my money or must I always go through Simple?
- noodle 15y agoi don't work for them. read their FAQ and their site. if it doesn't answer their questions, ask them. if you're not convinced, don't use it. i suspect this isn't for everyone. it might not be for you. not everyone "gets" mint either.
- shamirk 15y agoGuys - the FAQ https://www.simple.com/faq/has https://www.simple.com/faq/has all the answers you need. - FDIC insurance is pass through from the underlying banks. - you open your account through us, and manage it through us.
- Game_Ender 15y agoFrom all the questions here on HN I think you need to much more explicit with people about who actually holds their money, and that they can withdraw it from that Bank directly if they desire.
- esrauch 15y agoYou FAQ absolutely does not answer my question. It sounds like this comment answers the question, but it still isn't explicit enough. If I trust Joe Schmo with my money, he can put that money in a FDIC insured bank. In a way, you could say that I am protected by the FDIC insurance because if there is a run against the bank or something, my money would still be safe. However, the mere fact that Joe is storing my money in an FDIC insured location doesn't mean that I get the same legal protections. What if Simple goes out of business? If it goes bankrupt? I infer from this comment that my money would go nowhere if Simple went out of business, that I actually have a relationship with some bank that I could access and completely bypass Simple if I so chose, and that would continue to exist even if Simple went out of business. I would absolutely not trust you without this explicitly stated in the FAQ though.