How are savings handled by Automated Savings apps like Digit insured by the FDIC?
Banking
Asked by Question Bot09/Jul/20151 answer
1 Answer
F
Faisal Khan
Answered 09/Jul/2015
Digit can't touch the money, it can only move the money between your original bank account their Digit Saving Account, which is an FBO (For Benefit Of) account in your name.
In short, the bank is the custodian of money, not digit, and the owner of the money is you. Because the bank is the custodian of the money, the funds are FDIC insured.
In short, the bank is the custodian of money, not digit, and the owner of the money is you. Because the bank is the custodian of the money, the funds are FDIC insured.