Spencer Tierney

Even though these companies transfer your money to a partner which is actually FDIC insured, your money is not protected if the neobank fails, which is very scary, Spencer.

Even though these companies transfer your money to a partner which is actually FDIC insured, your money is not protected if the neobank fails, which is very scary, Spencer.

Yes, it is. If a neobank fails, FDIC insurance does not kick in.

Yes, it is. If a neobank fails, FDIC insurance does not kick in.

Yes, it is. If a neobank fails, FDIC insurance does not kick in.

customers might have to wait for a neobank's bankruptcy proceeding to recover the money in their deposit accounts. There might be disruptions or shutdowns of banking services, such as direct deposit and debit cards. So if a neobank fails and you're about to get paid, for example, your paycheck might be in limbo.

customers might have to wait for a neobank's bankruptcy proceeding to recover the money in their deposit accounts. There might be disruptions or shutdowns of banking services, such as direct deposit and debit cards. So if a neobank fails and you're about to get paid, for example, your paycheck might be in limbo.

customers might have to wait for a neobank's bankruptcy proceeding to recover the money in their deposit accounts. There might be disruptions or shutdowns of banking services, such as direct deposit and debit cards. So if a neobank fails and you're about to get paid, for example, your paycheck might be in limbo.

Now, all this said, one thing, the FDIC proposed a rule this September 2024 to help neobank customers get their money back in a timely manner if their company fails, so more protections could be coming. We don't know yet. But now, you might be asking, so when does FDIC insurance protect Neobank's accounts? The answer is only when the Neobank's partner bank fails.

Now, all this said, one thing, the FDIC proposed a rule this September 2024 to help neobank customers get their money back in a timely manner if their company fails, so more protections could be coming. We don't know yet. But now, you might be asking, so when does FDIC insurance protect Neobank's accounts? The answer is only when the Neobank's partner bank fails.

Now, all this said, one thing, the FDIC proposed a rule this September 2024 to help neobank customers get their money back in a timely manner if their company fails, so more protections could be coming. We don't know yet. But now, you might be asking, so when does FDIC insurance protect Neobank's accounts? The answer is only when the Neobank's partner bank fails.

But even if that happens, a Neobank has to have accurate record keeping in order for it to recover its customers' funds and not create any service disruptions or other money issues. A shorter way to put this, the FDIC only protects Neobank banks, period.

But even if that happens, a Neobank has to have accurate record keeping in order for it to recover its customers' funds and not create any service disruptions or other money issues. A shorter way to put this, the FDIC only protects Neobank banks, period.

But even if that happens, a Neobank has to have accurate record keeping in order for it to recover its customers' funds and not create any service disruptions or other money issues. A shorter way to put this, the FDIC only protects Neobank banks, period.

Even during the historic bank failures in 2023, the customers with checking and savings accounts at those banks had continuous access to their money, and they didn't lose a penny.

Even during the historic bank failures in 2023, the customers with checking and savings accounts at those banks had continuous access to their money, and they didn't lose a penny.

Even during the historic bank failures in 2023, the customers with checking and savings accounts at those banks had continuous access to their money, and they didn't lose a penny.

The FDIC swooped in quickly for Silicon Valley Bank and First Republic Bank and the other banks, took over operations, and eventually sold each bank to a healthy bank, and their customers' money ultimately got moved to that new bank.

The FDIC swooped in quickly for Silicon Valley Bank and First Republic Bank and the other banks, took over operations, and eventually sold each bank to a healthy bank, and their customers' money ultimately got moved to that new bank.

The FDIC swooped in quickly for Silicon Valley Bank and First Republic Bank and the other banks, took over operations, and eventually sold each bank to a healthy bank, and their customers' money ultimately got moved to that new bank.