Signing up for a money app takes two minutes. Finding out what happens to your money when something goes wrong can take months, as customers of some failed fintech middlemen learned in 2024. You don't need a law degree to protect yourself, but you do need to ask a few questions before you deposit a paycheck, buy crypto, or link your bank account. This checklist walks through twelve of them, where to find the answers, and what the answers mean.
Key takeaways
- Many fintech apps are not banks. Your deposits usually sit at a partner bank, and FDIC insurance protects you only if an insured bank fails, subject to conditions [1][2]. Related field note
- Investments and crypto are different: FDIC doesn't cover them, and SIPC protection doesn't cover market losses or most crypto assets [1][3].
- You can check licenses, registrations, and complaint histories for free using regulator databases [4][5][6][7].
- Federal Regulation E gives you error-resolution rights on electronic transfers, but you must report problems in time, generally within 60 days after the statement is sent [8].
- Read the fees, the account agreement's closure and freeze terms, and the privacy policy before you move serious money.
1. Is this company a bank, or does it partner with one?
Look in the app's footer, website, or account agreement for a line like "Banking services provided by [Bank Name], Member FDIC." If you see that, the fintech is a technology company and the named bank holds the deposits.
Why it matters: when the fintech isn't the bank, your protection depends on the bank and on the fintech keeping accurate records of who owns what. Related field note
How to check: Search the bank's name in the FDIC's BankFind tool to confirm it's an insured bank.
2. Is my money FDIC-insured, and under what conditions?
The FDIC insures deposits "up to $250,000 per depositor, per ownership category at each FDIC-insured bank" [1]. But:
- "FDIC deposit insurance only covers deposits, and only if your bank is FDIC-insured" [1].
- FDIC insurance protects you when an insured bank fails. It does not protect you if a non-bank fintech or middleware company fails.
- Through a fintech, your money may be pooled in a custodial account at the bank. Pass-through insurance can extend coverage to you individually only if the bank's and fintech's records properly identify each owner.
- If you already have money at the same partner bank directly or through another app, those balances may count toward the same $250,000 limit.
The FDIC has also updated its rules on how FDIC insurance can be advertised, including digital signage requirements, with a final rule effective March 2, 2026 and a compliance date of April 1, 2027 for banks [2]. Misrepresenting deposit insurance is prohibited regardless.
3. Are my investments or crypto protected, and how?
Stocks, bonds, mutual funds, and crypto are not FDIC-insured [1].
If the app is a brokerage, check that it's a member of the Securities Investor Protection Corporation (SIPC). SIPC protection is limited to $500,000 per account, including a $250,000 limit for cash, and it restores missing assets if a member brokerage fails. It "does not protect against the decline in value of your securities," and unregistered digital-asset investment contracts are not protected even at a SIPC member [3].
For crypto held on an exchange or wallet app, read the custody terms: who holds the keys, whether assets are segregated, and what happens in bankruptcy. Related field note
4. Is the company licensed or registered?
Different products need different licenses:
| Product type | Where to check | What you're looking for |
|---|---|---|
| Money transmission (P2P, remittances, digital wallets) | NMLS Consumer Access [4]; your state banking regulator | State money transmitter licenses |
| Money services business | FinCEN MSB Registrant Search | Federal MSB registration |
| Brokerage | FINRA BrokerCheck [5] | Broker-dealer registration and disciplinary history |
| Investment advice (including robo-advisors) | SEC Investment Adviser Public Disclosure [6] | Registration, Form ADV, disclosures |
| Bank | FDIC BankFind; OCC or state regulator | Charter and insurance status |
A license doesn't guarantee a company is well run, but no license where one is required is a serious red flag. Related field note
5. Does it have a history of enforcement actions or complaints?
- Search the CFPB Consumer Complaint Database, which publishes complaints about financial companies and how companies responded [7].
- Search regulator sites (CFPB, FTC, SEC, state regulators) and the partner bank's name for enforcement actions.
- Search news coverage for the company and its partner bank.
Complaint counts should be read in context: bigger companies get more complaints. Look at patterns, such as frozen accounts, unresolved disputes, or unexpected fees.
6. What are all the fees?
Don't stop at "no monthly fees." Look for:
- Instant transfer fees
- Out-of-network ATM and cash deposit fees
- Foreign transaction and currency conversion markups Related field note
- Subscription tiers and "optional" tips
- Inactivity or paper statement fees
- Advisory and fund fees for investing apps
The fee schedule is usually a separate document linked from the account agreement.
7. How does the company make money?
If a product is free, someone else is paying, often merchants through interchange, or you through lower interest on your balance, trading spreads, or add-on fees. Understanding the model helps you spot incentives, such as nudges to borrow, trade often, or upgrade. Related field note
8. How easily can I get my money out?
Read the account agreement for:
- Withdrawal and transfer limits
- Holds on new deposits
- The company's right to freeze or close your account, and how you get your funds back if it does
- What happens if the company shuts down or switches partner banks
Fintechs, like banks, must follow anti-money-laundering rules, which can lead to account reviews and freezes. Know how the company says it handles them before you rely on an app for rent or payroll.
9. What are my rights if something goes wrong?
For electronic fund transfers from consumer accounts, federal Regulation E sets error-resolution rules. You generally must notify the institution within 60 days after it sends the statement showing the error. The institution then generally must investigate within 10 business days, or up to 45 days if it provisionally credits your account; some transaction types allow longer [8].
Important limits: scams where you are tricked into sending money yourself are often treated differently from unauthorized transfers. Related field note Also check whether the product is a consumer account at all; some business products have fewer protections.
10. How is my data used and shared?
- Read the privacy notice: what it collects, whether it shares data with affiliates or third parties, and your opt-out choices.
- If you link bank accounts through a data aggregator, check which company is accessing your data and how to revoke access. Related field note
- Review app permissions such as contacts and location.
11. How secure is the login?
- Does the app support passkeys or an authenticator app, rather than only SMS codes? Related field note
- Can you set alerts for logins, transfers, and card transactions?
- Can you lock your card instantly?
- Does the company clearly state it will never ask for your password or one-time codes by phone or text? Related field note
12. Can I reach a human, and how fast?
Test support before you need it. Look for phone support hours, in-app chat, and a published complaint or escalation process. If support is hard to reach before you're a customer, it's unlikely to get easier during a dispute.
Red flags at a glance
| Red flag | Why it matters |
|---|---|
| "FDIC-insured" with no bank named | Insurance applies to banks, not apps; vague claims may be misleading |
| Guaranteed high returns | Legitimate investments carry risk |
| No license or registration you can verify | Weakens your recourse |
| Pressure to move money fast | Common in scams |
| Agreement lets the company hold funds indefinitely | You may not be able to access money when needed |
| Support only via social media | Hard to document disputes |
FAQ
Is my money safe in a fintech app if the app goes bankrupt? FDIC insurance covers insured bank failures, not fintech bankruptcies. If records are accurate, funds at a partner bank should belong to you, but access can be delayed, as the 2024 Synapse collapse showed. Related field note
How do I find out which bank holds my fintech money? Check the app footer, account agreement, cardholder agreement, or the back of your debit card for the bank name.
Does SIPC protect crypto? Generally no. SIPC says unregistered digital asset investment contracts are not protected under SIPA, even at a SIPC-member firm [3].
How long do I have to dispute an unauthorized electronic transfer? Under Regulation E, you generally must notify your financial institution within 60 days after the statement showing the error is sent [8]. Report as soon as possible.
Where can I complain about a fintech app? Contact the company first, then consider the CFPB complaint portal, your state regulator, or the FTC, depending on the issue [7].
Sources
- Federal Deposit Insurance Corporation, "Understanding Deposit Insurance," https://www.fdic.gov/resources/deposit-insurance/understanding-deposit-insurance (accessed 2026-09-17)
- Davis Wright Tremaine, "FDIC Finalizes New Official Digital Signage and Advertising Rule, With Some Changes," https://www.dwt.com/blogs/financial-services-law-advisor/2026/02/fdic-finalizes-digital-signage-advertising-rule (February 2026; accessed 2026-09-17); Federal Register final rule, https://www.federalregister.gov/documents/2026/01/29/2026-01806/fdic-official-signs-advertisement-of-membership-false-advertising-misrepresentation-of-insured (January 29, 2026)
- Securities Investor Protection Corporation, "What SIPC Protects," https://www.sipc.org/for-investors/what-sipc-protects (accessed 2026-09-17)
- NMLS Consumer Access, https://www.nmlsconsumeraccess.org/Home.aspx/MainSearch (accessed 2026-09-17)
- FINRA, BrokerCheck, https://brokercheck.finra.org/ (accessed 2026-09-17)
- U.S. Securities and Exchange Commission, Investment Adviser Public Disclosure, https://adviserinfo.sec.gov/ (accessed 2026-09-17)
- Consumer Financial Protection Bureau, "Consumer Complaint Database," https://www.consumerfinance.gov/data-research/consumer-complaints/ (accessed 2026-09-17)
- Consumer Financial Protection Bureau, Regulation E, 12 CFR 1005.11 (Procedures for resolving errors), https://www.consumerfinance.gov/rules-policy/regulations/1005/11/ (accessed 2026-09-17)
Last updated September 17, 2026. This checklist is for educational purposes only and is not financial, legal, tax, or investment advice. It does not evaluate or recommend any specific app. Rules, licenses, and terms change; verify current terms and registrations directly with providers and regulators.