Why You Should Care About FDIC Insurance

Did you know Bitmo accounts are FDIC-insured? We may have only been together for six weeks, but we really care about you. In dog years that’s nearly 12 months. If this was high school, we’d be going steady. What we’re trying to say is that we’re committed to our users in a big, federally-regulated kind of way.

On top of being stacked with cool features like the ability to transfer funds from your bank with the 3-click “quick add” function and our forthcoming loyalty rewards programs, Bitmo is backed by the Federal Deposit Insurance Corporation. In layman’s terms, it means that when you open an account upon signup, the FDIC insures the funds in your Bitmo wallet up to $250,000. In the unlikely event we are unable to meet our obligations to you, the depositor, your money is safe. The FDIC will pay back every cent of your balance.*

Why does that matter? We hope it never does. Bank failures are rare, but they can still occur. In fact, one of the most recent cases points to First CornerStone Bank which held over $100 million in deposits before closing in May 2016.

If you’ve ever used Venmo or Square Cash to pay a friend, you probably didn’t think much about the security of your funds. In general, we use those apps to move small amounts of cash between friends and family and we don’t care that they’re uninsured.

But as we transition into a cashless society and slowly phase out plastic in favor of mobile wallets, FDIC insurance will matter more. Once we can use a single app to pay, get paid, and earn rewards everywhere we shop, we’ll have no reason to use a traditional checking account. We want to have your back from the get-go.

That’s how we roll. That’s Bitmo.

*Maximum limit of $250,000 applies. If you have more than a quarter mil’ to spare, you have a good problem on your hands. Go open an IRA. Take up gambling. Send a gourmet sandwich platter to our Carlsbad office.