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Guys - 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 b
by shamirk 15y ago
Guys - 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.