Chime is among the most widely used digital banking platforms in the U.S., offering consumers an easy, low-fee alternative to traditional banks. As a result, it has attracted a lot of attention for the best bank services and features like mobile banking that are easy for customers to use. Now that countless people are opening Chime accounts, lots of folks also have been wondering: “Is Chime FDIC insured?”

So in this blog post, we’re going to break down what is FDIC insurance, how Chime keeps your money safe and why it’s important to do some investigating to see whether or not your bank is FDIC insured. Read on for everything you need to know to keep your money safe when banking with Chime.

What is FDIC Insurance?

Before we address the question of whether Chime is FDIC insured, let’s give it a look to what does FDIC insurance means. The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the federal government which protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. Deposits are FDIC-insured up to $250,000 per depositor, per insured bank, for each account ownership category.

If the bank fails or goes under, however, you’ve got FDIC insurance on your deposits — and can reclaim up to $250,000 of them. The coverage is good for several accounts, such as checking, savings and money market accounts.

Is Chime FDIC Insured?

Now, here’s the real question: Is Chime FDIC insured? The answer, technically, is yes — with a critical caveat.

First of all, Chime isn’t a bank but rather a financial technology company. It is partnered with The Bancorp Bank and Stride Bank, N.A., both FDIC members. When you open an account at Chime, your money is deposited into one of these partner banks, and it is insured by FDIC insurance to the maximum amount allowed by law.

How does Chime offer FDIC insurance?

Chime is not a bank, but it’s partners with FDIC-insured banks to guarantee your money remains safe. Here’s how it works:

Account Protection: Funds you deposit into a Chime Spending Account or Savings Account are stored at either The Bancorp Bank or Stride Bank. Both are F.D.I.C. members, and your deposits are insured up to $250,000 per depositor per bank.

Separate Accounts: Your money is held separately from bank operating funds at Chime. In other words, should The Bancorp Bank or Stride Bank become troubled banks, your money is covered by FDIC insurance.

Protection Limits: If you have opened more than one account with the accounts two banks, all your individual deposit accounts will be aggregated for purposes of the limit that applies per depositor in that ownership category. If you have both a Chime Spending Account and a Chime Savings Account, the maximum coverage is up to $500,000 if each account is held at a different bank.

What’s Protected: FDIC insurance protects your account balances, such as deposits that you’ve made through direct deposit, ACH transfers and deposits of checks. Investments or securities are not covered, but cash deposits are.

What Does FDIC Insurance Not Cover?

Though FDIC insurance is robust protection for your capital, there are some exceptions. These are not FDIC insured:

Cryptocurrency Holdings Cryptocurrencies (including Bitcoin, Ethereum, or any other virtual currency) held through Chime are not covered by the FDIC. The FDIC insures only “a traditional” currency account.

Investment Products: FDIC protection does not apply to investment products (i.e. anything that isn’t a savings vehicle): securities, stocks, bonds and mutual funds issued by a bank or other financial institution.

Fraud Losses: If you lose money from fraud — if, for example, someone makes unauthorized transactions in your account — that’s not a case where you would be covered by FDIC insurance. But Chime has robust fraud protections, and you might be able to get your money back through their dispute resolution process.

Why FDIC-Insured Chime is Important For Users

Chime partners with FDIC-insured banks to protect your funds. Here are the reasons FDIC insurance applies to Chime users:

Safety and Peace of Mind: With the peace of mind that comes with knowing you have FDIC insurance for up to $250,000 backing your deposits, your money is safe, even if the financial institution that holds it goes out of business.

Automatic Insurance — You don’t need to research or make an election FDIC insurance is automatically included with your Chime account. That it is made simple to take advantage of government-backed protection, with no hoops to jump through.

trust and confidence: FDIC insurance is one of the most trusted types of protection available. They have this insurance in place to give users confidence that Chime does business safely and responsibly.

How to verify that your money is FDIC-insured with Chime

If you’re wondering whether your FDIC coverage at Chime is legitimate, there’s a simple way to find out. Here’s how:

Chime’s terms and conditions: In its terms and conditions and FAQs, Chime is upfront about how its partnership with FDIC-insured banks.

Contact Customer Support: If you have questions that are more specific about FDIC coverage or account protection, you can reach out to Chime’s customer support team directly.

Bank Information: Chime’s website lists its partner banks, The Bancorp Bank and Stride Bank, N.A., which are members of the FDIC. You also can go to the FDIC website and look them up by name to check whether they are insured.

Final Thoughts: Chime FDIC Insured is it?

So there you have it, Chime is FDIC insured through our partner banks the The Bancorp Bank and Stride Bank who provide this service not Chime. And Chime is built with security in mind, cooperating with FDIC-insured banks to ensure your money is protected up to $250,000 per depositor.

If you are looking for a mobile-first digital banking app that offers the best features of traditional banks without their punitive fees and penalties, Chime is worth a look. Just know that though your deposits are insured, it’s useful to know what FDIC insurance covers and what it does not.

Because you’re banking with Chime and benefiting from FDIC insurance, should something happen to one of Chime’s partners like Esquire Bank, then your funds are also actually protected.

bankingwithchime is not affiliated with chime. For more information visit chime.com