{"id":9962,"date":"2024-07-19T04:00:00","date_gmt":"2024-07-19T10:00:00","guid":{"rendered":"https:\/\/milesearnandburn.com\/?p=9962"},"modified":"2024-07-17T23:19:42","modified_gmt":"2024-07-18T05:19:42","slug":"fintechs-and-fdic-insurance","status":"publish","type":"post","link":"https:\/\/milesearnandburn.com\/index.php\/2024\/07\/19\/fintechs-and-fdic-insurance\/","title":{"rendered":"Weekend Wisdom: FinTechs and FDIC Insurance"},"content":{"rendered":"\n<h4 class=\"wp-block-heading\">Introduction<\/h4>\n\n\n\n<p>Since 2021 or so, an odd brokerage named <a href=\"https:\/\/thedailychurnpodcast.com\/ep-45-deal-alerts-june-recap\/\" class=\"ek-link\">Moomoo let crafty churners<\/a> earn several thousand dollars with <a href=\"https:\/\/www.uscreditcards101.com\/futu-moomoo-app\/\" class=\"ek-link\">relatively convoluted promotions and bonuses<\/a>, the kind that needed a few pages worth of text or 10 minutes worth of talking to wade through; also known as &#8220;A Churner&#8217;s Delight.&#8221;<\/p>\n\n\n\n<p>Moomoo has now become semi-mainstream, so much so that they&#8217;ve appeared on DoC <a class=\"ek-link\" href=\"https:\/\/www.doctorofcredit.com\/moomoo-8-1-apy-savings-account-rate-for-first-3-months\/\">three<\/a> <a class=\"ek-link\" href=\"https:\/\/www.doctorofcredit.com\/moomoo-signup-offer-get-300-bonus-with-20000-investment-transfer\/\">times<\/a> this <a class=\"ek-link\" href=\"https:\/\/www.doctorofcredit.com\/moomoo-brokerage-for-existing-users-get-100-with-2001-deposit\/\">year<\/a>, with less convoluted promotions to bring more funds into the FinTech which is simultaneously part bank and part brokerage.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Safety<\/h4>\n\n\n\n<p>Churners are good at probing the most dank, web ridden, smelly corners of the financial world. They&#8217;re often emboldened to do so because they&#8217;ve got protections like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CFPB for credit instruments<\/li>\n\n\n\n<li>FDIC for deposit account insurance<\/li>\n\n\n\n<li>SIPC for brokerage account insurance<\/li>\n<\/ul>\n\n\n\n<p>For most financial products if everything fails, you&#8217;ll get everything you&#8217;re owed paid back in full thanks to the above. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\">FinTech Weirdness<\/h4>\n\n\n\n<p>FinTechs lean on the perceived safety to give you confidence in working with them, but as the Synapse shutdown and bankruptcy has shown, just because there&#8217;s an FDIC or SIPC insured account somewhere, you&#8217;re not necessarily protected in the event of failure. A few nuances that you should know:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.fdic.gov\/news\/fact-sheets\/crypto-fact-sheet-7-28-22.html\" class=\"ek-link\">FDIC and SIPC don&#8217;t cover fraud or theft<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.cnbc.com\/2024\/07\/02\/synapse-fintech-fdic-false-promise.html\" class=\"ek-link\">An account has to be yours to be covered by FDIC or SIPC<\/a><\/li>\n\n\n\n<li>Some FinTechs put their funds in custodial accounts that aren&#8217;t in your name, so you&#8217;re not actually covered (See <a href=\"https:\/\/www.nytimes.com\/2024\/07\/09\/business\/synapse-bankruptcy-fintech-fdic-insurance.html\" class=\"ek-link\">Juno and Yotta for example<\/a>)<\/li>\n<\/ul>\n\n\n\n<p>Remember, &#8220;we keep all your funds in an FDIC insured account&#8221; doesn&#8217;t necessarily mean that you have any protection. <a href=\"https:\/\/banks.data.fdic.gov\/bankfind-suite\/bankfind\" class=\"ek-link\">Check the FDIC website to be sure<\/a>.<\/p>\n\n\n\n<p>Have a nice weekend!<\/p>\n\n\n<div class=\"wp-block-image is-style-editorskit-rounded\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"559\" height=\"480\" src=\"https:\/\/milesearnandburn.com\/wp-content\/uploads\/2024\/07\/IMG_9090.jpeg\" alt=\"\" class=\"wp-image-9963\" style=\"width:420px\" srcset=\"https:\/\/milesearnandburn.com\/wp-content\/uploads\/2024\/07\/IMG_9090.jpeg 559w, https:\/\/milesearnandburn.com\/wp-content\/uploads\/2024\/07\/IMG_9090-300x258.jpeg 300w\" sizes=\"auto, (max-width: 559px) 100vw, 559px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\" style=\"font-size:14px\">Few know that the original Churner&#8217;s Delight recipe came from a cafe in Portland. (Thank to Elaine)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction Since 2021 or so, an odd brokerage named Moomoo let crafty churners earn several thousand dollars with relatively convoluted promotions and bonuses, the kind<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[5,56],"tags":[],"class_list":["post-9962","post","type-post","status-publish","format-standard","hentry","category-meta","category-wisdom"],"_links":{"self":[{"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/posts\/9962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/comments?post=9962"}],"version-history":[{"count":4,"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/posts\/9962\/revisions"}],"predecessor-version":[{"id":10010,"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/posts\/9962\/revisions\/10010"}],"wp:attachment":[{"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/media?parent=9962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/categories?post=9962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/tags?post=9962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}