Understanding FDIC Insurance for Your Stash Account

Many investors are concerned about the safety of their funds when using online investment platforms like Stash. One common query is whether Stash is FDIC insured. This article aims to clarify whether Stash or accounts related to Stash, such as Acorns, are FDIC insured, and if not, which other regulatory bodies ensure their safety.

Acorns and FDIC Insurance

Acorns, a popular robo-advisor platform, does not have FDIC insurance. Instead, it is insured by the Securities Investor Protection Corporation (SIPC). SIPC is a non-profit membership corporation created by the U.S. Congress to protect consumers and investors by safeguarding their cash and securities in the event a brokerage firm fails. For more information, you can read this article.

Stash and FDIC Insured Sweep Program

For investors using Stash, the FDIC insurance coverage comes into play for uninvested funds. These funds are enrolled in the Apex FDIC-insured Sweep Program. According to the guidelines provided by the FDIC, deposits to the Sweep Program are covered up to the FDIC insurance limit of $250,000 per customer at each FDIC-insured bank that participates in the program. This directly applies only to uninvested funds.

FDIC Coverage and Stash Accounts

The FDIC insures deposits in chartered banks, which include state and national banks. Stocks, bonds, and other investments are not FDIC insured. Therefore, if funds in your Stash account are in a chartered bank as indicated, they would be insured up to $250,000. However, it's important to remember that the FDIC does not cover all types of investments managed by Stash.

Key Points to Remember

The FDIC insures only deposits in chartered banks (state and national banks).

SIPC insures cash and securities in case a brokerage firm fails, typically for brokerage accounts.

The Apex FDIC-insured Sweep Program covers uninvested funds up to $250,000 per customer at each FDIC-insured bank participating in the program.

Stocks, bonds, and other investments are not FDIC insured. The specific terms and conditions of your account should be carefully reviewed.

Conclusion

When it comes to ensuring the safety of your funds on platforms like Acorns and Stash, understanding the types of insurance provided is essential. While Acorns is insured by SIPC, Stash offers FDIC insurance through the Apex FDIC-insured Sweep Program for uninvested funds. It's always a good practice to thoroughly review the terms of your accounts and the specific insurance coverage provided.

Keywords: Stash FDIC insurance, Stash SIPC insurance, Stash FDIC insured sweep program