Why is everyone a bank?

Re:Why is everyone a bank? by acjohnson55 on Monday November 18, 2019 @09:21PM (#21570191)

With Robinhood, I understand cash is SIPC insured once it hits their systems, and then it is a couple of days until it is deposited in underlying accounts at their program banks, where it is FDIC insured. So it's something to consider when moving large amounts of money.

Another thing is that these neobanks have withdrawal amount limits and ATM limits, and so they aren't a great choice for storing emergency funds.

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Re:Why is everyone a bank? by briandear on Monday November 18, 2019 @10:56PM (#21570537)

> Another thing is that these neobanks have withdrawal amount limits and ATM limits

Every French bank has these limits. I once had a French bank account that limited my debit card to €2500 in purchases in a month — for no good reason other than trying to limit access to my own money. Cash purchases over €1000 are also illegal in France. For the most ridiculous banking rules and limits, France is the place. My chase account in the other hand, I could withdrawal $100k in cash if I wanted. Still have a (high) debit card limit, but I can call them and immediately get it lifted for a specific transaction (such as buying a car.)

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Re:Why is everyone a bank? by acjohnson55 on Monday November 18, 2019 @11:36PM (#21570673)

Yeah, but for the neobanks, it's even more strict. You simply can't access all your money instantly. As far as I can tell, anyhow.

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