Banking
FDIC insurance
FDIC insurance protects deposits at US member banks up to a statutory limit per depositor, per institution, per ownership category, if the bank fails. Fintech accounts are usually not banks themselves and pass through insurance via partner banks.
In plain terms: Government protection on money held at a US bank if the bank collapses.
Why it matters
Worth reading carefully on a fintech account. 'FDIC-insured' there usually means funds sit at partner banks that carry the insurance, so your protection depends on that arrangement working as described. Know who actually holds your money.
Read the full guideUS business banking