I’ll be having a conversation with @matt_levine tomorrow about the intersection of tech and finance. Anything in particular you’d like to hear us talk about?https://twitter.com/bopinion/status/1158792388111949827 …
-
-
A better fintech example might be jiko which (promises to) puts deposits in US Treasuries and is only SIPC insured.
-
It’s a great question btw, just wanted to provide another example in case you think some of those are sufficiently insured to make this question less interesting.
- 1 more reply
New conversation -
-
-
@Wealthfront account *IS* FDIC insured up to $1M. They split the funds between banks to provide $1M coverage which is 4x normal banks -
It's not insured until the cash is swept to member banks. Wealthfront doesn't say when/how often the cash is swept. The question comes down to: Is the additional APY (2.32% with Wealthfront vs e.g., Marcus's 2.15%) worth any additional risk? Personally, the answer is no.
End of conversation
New conversation -
-
-
There's some gray area there. From the fine print (https://www.wealthfront.com/cash ): "The cash balance in the Cash Account is swept to one or more banks...and is eligible for FDIC insurance. FDIC insurance is not provided until the funds arrive at the Program Banks."
-
Similar language for SoFi (https://www.sofi.com/legal/#sofimoney-membership …). Personally, I wouldn't keep a substantial amount of money in those accounts, because there's a chance it won't be insured, and that small amount of risk isn't worth any additional benefit (higher interest rates, namely).
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.