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Are Banks That Use Other Bank's FDIC Certificate FDIC Insured?

jeremyharrison
  |     |   56 posts since 2011

I have noticed that some banks listed here claim they are FDIC insured - by depositing your funds at another bank. Sound funky. What assurance is there that one's funds are FDIC insured?

2 example - Bask Bank says their FDIC number is 34383. Look that up on the FDIC website and one gets Texas Capital Bank. Search for Bask Bank and the FDIC has NO record of them

With some banks which say their deposits are held and insured by another bank, when you look up the FDIC certificate number they give out, the other bank is listed, but also lists the bank in question as "another brand" - indicating that the FDIC has record of it and has insured it.

Not so with Bask (or with Finworth, which says in is a division of INSBank).

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3


Answers
Rickny
  |     |   1,296 posts since 2017
Bask Bank is a division of Texas Capital Bank. Member FDIC. The sum of your total deposits with (i) Bask Bank and (ii) Texas Capital Bank are insured up to $250,000 per depositor for each account ownership category.

Probably like Brio Direct which is part of Webster Bank.
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jeremyharrison
  |     |   56 posts since 2011
Says who? Not the FDIC, who is who matters. FDIC has no listing of Bask Bank, nor does it show Bask Bank as a division of Texas Capital Bank. Many other banks that have "divisions" have those divisions listed on the FDIC page so the FDIC is stating that, yes, XXX bank is a division or brand or "other name" of ZZZ Bank and thus is FDIC insured. The FDIC has no record of Bask Bank.
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GreenDream
  |     |   358 posts since 2019
"Says who?"

Texas Capital Bank says who and how it's divisions are made and handled. But if you are really unsure, rather than ask an internet forum only to stomp your feet when someone answers your question, contact the FDIC directly and ask them your questions:
https://ask.fdic.gov/fdicinformationandsupportcenter/s/?language=en_US

maybe ask something like: Bask bank (include website URL) says it's a division of Texas Capital Bank (include URL and FDIC number for Texas Capital Bank). Is Bask Bank FDIC insured via Texas Capital Bank?

Let us know what answer you get. Or just stomp your feet some more, the choice is yours.
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jeremyharrison
  |     |   56 posts since 2011
Thanks for the URL. Yeah, not "stomping feet" - I just prefer to hear from the FDIC to confirm if a bank (which is not listed on the FDIC website) is indeed FDIC insured- and I prefer to get that in an email or in writing rather than relying on a verbal answer (after a long hold time). When I give a bank $1M, I do like to know that it is insured - and anyone can say they are FDIC insured, but ultimately it's the FDIC that can only back that up. Thanks again! :)
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Rickny
  |     |   1,296 posts since 2017
Jeremy I totally understand. You have to be comfortable where you put your money.
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GreenDream
  |     |   358 posts since 2019
" I just prefer to hear from the FDIC to confirm if a bank ... is indeed FDIC insured"

Then you should have asked the FDIC directly instead of asking an internet forum only to not like the answers posters at the forum give you. But since you started a thread on the forum, be sure to let us know what reply you get from your question(s) that you ask (you are going to ask, right?) the FDIC directly.

"which is not listed on the FDIC website"

While the subdivision (bask bank in the example) isn't listed, the parent is. And the parent company claims the subdivision as it's own (see Rickny's links in regards to bask bank).

"When I give a bank $1M, I do like to know that it is insured"

Well, since the FDIC insurance limit is $250,000 per depositor, per insured bank, for each account ownership category, if you are putting all $1 million into one account at one bank, I can already tell you that it's not all insured regardless of what that one single bank's FDIC insurance status is (barring any repeat of what FDIC did for SVB depositors or congress changing the limit)

With that kind of money, you are better off breaking it up into smaller chunks spread out across multiple FDIC insured banks and/or multiple account ownership categories at said bank(s)
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jeremyharrison
  |     |   56 posts since 2011
Greendrum - I just add 4 POD beneficiaries - FDIC insurance is $1M for that. And I did contact the FDIC to pose the question. They will email a reply...whenever they get around to it. I will post the info when they do. Thanks!
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Ltssharon
  |     |   471 posts since 2020
Yes. Fdic got back to me when I questioned whether I was looking at a fraudulent website for seattle bank. The website in question had a different address than the address on fdic. I was NOT going to send a check to a fraudulent address.
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Rickny
  |     |   1,296 posts since 2017
Take a look at the bottom of the Bask website. I cut and pasted from their website. If you don't feel that your money won't be insured choose another institution.

I prefer not doing business with Fintechs or with Savebetter.
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Rickny
  |     |   1,296 posts since 2017
https://www.texascapitalbank.com/who-we-are/newsroom/news/2022/02/09/bask-bank-expands-product-set-new-high-yield-interest-savings-account#:~:text=Bask%20Bank%20is%20a%20division,insured%20bank%20headquartered%20in%20Dallas.
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Rickny
  |     |   1,296 posts since 2017
https://www.texascapitalbank.com/who-we-are/newsroom/news/2022/02/09/bask-bank-expands-product-set-new-high-yield-interest-savings-account#:~:text=Bask%20Bank%20is%20a%20division,insured%20bank%20headquartered%20in%20Dallas.
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