Warning goes out that money stored in Venmo and other cash apps not insured by the Feds

[thewayne]

Venmo and Paypal, though it makes certain parts of our financial life much easier, are not banks and not safe places to store money. Since they are not banks, they are not federally regulated and not insured by the Federal Deposit Insurance Corp, which insurance bank accounts (savings and checking, not investments) for up to $250,000. This includes Apple Savings as not being insured, but does not include the Apple Card's Goldman Sachs savings account (paying more than most CDs at 4.15% APR) as Goldman Sachs has a Federally-recognized banking side, and thus insured by the FDIC.

I've never had more than $50 or so sitting in my Paypal account from a refund or something, and that'll be gobbled up in a Humble Bundle purchase or three, or I'll move it back into my bank.

https://apnews.com/article/venmo-paypal-cashapp-p2p-payments-deposit-insurance-f89eba2486a383160b9343e2e4e60b3f

Comments

[thewayne]

I've used Venmo to send money to my sister to cover some bills regarding my dad's property, and unexpectedly received a hefty sum from a friend.  It's pretty darn convenient.  But I'll never use it as a regular thing.  Paypal, I use quite regularly, especially for Humble Bundle, but that's just so I'm not storing credit card information on everybody's web site.

[disneydream06]

I've never used Venmo and other then ebay, I don't use paypal for too many things.