# A fintech app says 'FDIC insured'. What is actually protected?

Deposit insurance concerns an insured bank's failure. A nonbank app's bankruptcy, records and access problems are separate risks.

[Canonical HTML page](https://nosecrets.app/en/stories/fintech-app-fdic-insurance-limits)

Published by: [No Secrets Research](https://nosecrets.app/en/about#methodology)
Added: 2026-10-20
Topic: Money & payments

## Scope and context

Applies to: United States · nonbank apps placing customer funds at banks
Time context: Public guidance checked October 20, 2026
Sources checked: 2026-10-20

This does not assess any named app or determine an individual claim. Pass-through coverage depends on the actual arrangement and required records.

## The app is not the insured bank

FDIC says nonbank companies themselves are never FDIC-insured. Sending money to one does not immediately create insured deposits: funds must reach an insured bank and other conditions must be met.

[1: FDIC](https://www.fdic.gov/consumer-resource-center/2024-06/banking-third-party-apps)

## Records connect the balance to its owner

Pass-through insurance relies on the underlying ownership arrangement and records. It is not a separate insurance ownership category, and a dashboard balance alone does not establish eligibility.

[2: FDIC](https://www.fdic.gov/financial-institution-employees-guide-deposit-insurance/pass-through-deposit-insurance-coverage)

## Ask who holds the money

Our checklist: obtain the partner bank's name, account terms and withdrawal route. FDIC explicitly excludes a nonbank company's insolvency from deposit-insurance protection; access can be delayed even where money may ultimately be recovered.

[1: FDIC](https://www.fdic.gov/consumer-resource-center/2024-06/banking-third-party-apps)

## Sources

1. [Banking With Third-Party Apps](https://www.fdic.gov/consumer-resource-center/2024-06/banking-third-party-apps) — FDIC. 2024-05-31. Explains why nonbank failure is outside deposit insurance.

2. [Pass-through Deposit Insurance Coverage](https://www.fdic.gov/financial-institution-employees-guide-deposit-insurance/pass-through-deposit-insurance-coverage) — FDIC. Checked 2026-10-20. Describes beneficial ownership and recordkeeping requirements.

## Disclosure

AI-assisted research, writing and translation by No Secrets, using the linked public documents. This is a source summary, not firsthand reporting or an independently audited investigation. No affiliate links are used in this article.

The source-check date is not the event date. Original documents control if a summary differs.