Doesn't that mean that you don't actually get any of the legal protections (insurance and assurances) that comes with keeping your money in a bank or credit union?
Guys - the FAQ https://www.simple.com/faq/has all the answers you need.
- FDIC insurance is pass through from the underlying banks.
- you open your account through us, and manage it through us.
From all the questions here on HN I think you need to much more explicit with people about who actually holds their money, and that they can withdraw it from that Bank directly if they desire.
You FAQ absolutely does not answer my question. It sounds like this comment answers the question, but it still isn't explicit enough.
If I trust Joe Schmo with my money, he can put that money in a FDIC insured bank. In a way, you could say that I am protected by the FDIC insurance because if there is a run against the bank or something, my money would still be safe.
However, the mere fact that Joe is storing my money in an FDIC insured location doesn't mean that I get the same legal protections. What if Simple goes out of business? If it goes bankrupt?
I infer from this comment that my money would go nowhere if Simple went out of business, that I actually have a relationship with some bank that I could access and completely bypass Simple if I so chose, and that would continue to exist even if Simple went out of business. I would absolutely not trust you without this explicitly stated in the FAQ though.
I still don't get it. When I deposit $1000 into Simple, will I get a statement from Simple or the "banking partner". Can I go directly to the "banking partner" and withdraw my money or must I always go through Simple?
i don't work for them. read their FAQ and their site. if it doesn't answer their questions, ask them. if you're not convinced, don't use it. i suspect this isn't for everyone. it might not be for you. not everyone "gets" mint either.
