What is the FDIC and what does it do?
FDIC stands for Federal Deposit Insurance Corporation and operates as an independent federal agency of the United States government. The FDIC's primary role is to insure deposits at banks and thrifts (savings associations) up to the legal limit. This insurance protects depositors up to $250,000 per depositor in case an FDIC member-bank fails or goes bankrupt.
How does FDIC insurance cover my accounts with Dave?
While Dave is a financial technology company and not an FDIC-insured bank, the deposit accounts you open through Dave are held at FDIC member-banks, Evolve Bank & Trust, and another bank partner, which can protect Dave members up to the $250,000 limit with what is known as “pass-through deposit insurance”. In order for pass-through deposit insurance to apply, certain conditions must be satisfied by Dave, and its bank partners.
For more information, visit the FDIC’s website at https://www.fdic.gov/deposit/index.html
Learn more about FDIC insurance when banking through fintech apps at https://www.fdic.gov/consumer-resource-center/2024-06/banking-third-party-apps