Help me understand. If I put my $ in a savings account with Wells Fargo, for example, I know my $ is insured up to a max of $250k. I get peanuts. If I put my $ in a savings account with wealthfront or betterment, for example. My $ is fdic insured for higher. They use other banks. I get a better interest rate. If the program bank fails, am I protected? Is the $ under their name or mine? If both, the program bank and the fintech fail, am I protected? Really trying to understand.
Wealthfront has 12 banks in their bank program and it’s highly unlikely that Wealthfront would not manage their risk profile weekly.
Underlying bank fails you are protected. If fintech fails you are not.
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As long as the bank is FDIC supported (most are) you are good up to $250K … if bank fails, fdic covers the loss…Also most banks are peanuts interest rates, WF, Chase, BofA etc… you’ll get better mileage with Credit unions or online banks