Are Online Business Banks FDIC Insured?

Whether you’re comparing online or brick-and-mortar banks, there are some things to look out for if you’re concerned about the safety of your cash: deposit insurance, cybersecurity and user protections.

Are online banks safe?

Online banks can be just as safe as regular institutions with physical locations. Online banks typically have the same security protections and deposit insurance you’d find at large traditional banks, like Chase or Wells Fargo.

While a digital bank won’t have a branch location with a backroom vault stuffed with cash, the deposit insurance and security measures are typically the same.

For example, online banks like SoFi®, Varo and Ally Bank are all legitimate institutions with federal deposit insurance and bank charters. They also offer industry-standard encryption and security features such as two-step verification.

Related: Best Checking Accounts

Do online banks have deposit insurance?

Yes, online savings and checking accounts from federally insured online banks are protected by deposit insurance. Federally chartered banks are legally required to have this coverage, and customers don’t have to pay for it.

Just like traditional banks, online bank accounts can have federal deposit insurance, either through the Federal Deposit Insurance Corporation for banks or the National Credit Union Administration (NCUA) for credit unions.

Insured deposit accounts are protected up to at least $250,000 per depositor, per FDIC- or NCUA-insured institution, per ownership category. This protection applies to various deposit account types, such as checking, savings and certificates of deposit.

Top online banks with deposit insurance

• Chase bank accounts are insured up to $250,000 (the typical amount) with the FDIC.
• Wealthfront Cash Accounts are insured up to $8 with the FDIC and a network of program banks.
• Alliant Credit Union’s deposit accounts are insured up to $250,000 with the NCUA.
• Chime’s deposit accounts are insured up to $250,000 with the FDIC through its partner banks, Bancorp Bank and Stride Bank.

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SoFi Checking and Savings

With SoFi Checking and Savings get paid up to two days early. Set up direct deposit to automatically get your paycheck up to two days early every time you get paid

• Up to 3.30% APY on savings by meeting deposit requirements or by paying the SoFi Plus subscription fee every 31 days
• Get a $50 or $400 bonus depending on direct deposit amount
• $0 account or overdraft fees

Partner terms and conditions

New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 9/23/26. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 9/23/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.

SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.

We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees may be incurred when using out-of-network ATMs. SoFi’s ATM policies are subject to change at our discretion at any time.

Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

Overdraft Coverage is a feature automatically offered to SoFi Checking and Savings account holders who receive at least $1,000 or more in Eligible Direct Deposits within a rolling 31 calendar day period on a recurring basis. Eligible Direct Deposit is defined on the SoFi Bank Rate Sheet, available at https://www.sofi.com/legal/banking-rate-sheet. Members enrolled in Overdraft Coverage may be covered for up to $50 in negative balances on SoFi Bank debit card purchases only. Overdraft Coverage does not apply to P2P transfers, bill payments, checks, or other non-debit card transactions. Members with a prior history of unpaid negative balances are not eligible for Overdraft Coverage. Eligibility for Overdraft Coverage is determined by SoFi Bank in its sole discretion. Members can check their enrollment status, if eligible, at any time by logging into their account through the SoFi app or on the SoFi website.

Earn up to 4.40% Annual Percentage Yield (APY) on one SoFi Savings account with a 1.10% APY Boost (added to the 3.30% APY as of 10/20/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/27. Rates are variable, subject to change. Terms apply at sofi.com/banking#4. SoFi Bank, N.A. Member FDIC.

What security measures do online banks have?

Alongside deposit insurance, you can expect these industry-standard security protections at online banks:

• Two-factor authentication (2FA), such as a security code when you sign in to your account.
• Biometric logins, such as face recognition or fingerprint authentication, are used when logging in to your bank’s mobile app.
• Fraud detection and alerts, such as contacting you if the bank sees suspicious activity on your account.
• Personal information encryption, including the industry-standard Advanced Encryption Standard (AES) 256-bit encryption.
• Card locking, usually available in the bank’s app, to turn your cards on or off if you suspect fraud or have misplaced them.

How do I resolve issues with an online bank?

For most online banks, you can resolve issues over the phone, through email or in your bank app. Some online banks will also offer online forms you can fill out if you have a problem.

Online banks don’t have physical branches, so you can’t exactly head to a local branch to get a new debit card or resolve a fraud issue. Admittedly, not having access to physical locations isn’t as great for complicated banking issues, and it is one of the most glaring downsides of doing all your banking exclusively online.

If you’re thinking of doing all your banking online, make sure you’re comfortable resolving any issues through electronic channels.

Are online banks more susceptible to scams?

The short answer is no, online banks aren’t more vulnerable to scammers or fraud than regular banks.

Most banks, online or otherwise, employ similar security measures. Whether you get scammed often comes down to bad luck or falling victim to a sophisticated banking scam.

Phishing and spoofing are common tactics scammers use to try to get your information:

• Phishing. A social engineering scam that involves a scammer pretending to be someone else (like your bank) to get your personal information.
• Spoofing. Caller ID spoofing involves scammers masking their phone number to make it look like your bank or credit card company is calling you.

In many cases, scammers will use a combination of phishing and spoofing to try to dig your sensitive information out of you. If someone contacts you out of the blue asking for your two-factor authentication or banking password, consider that a sign of a scam — even if it seems like they’re from your bank.

If you’re ever suspicious of odd text messages, emails or phone calls, simply contact your bank directly.

Bottom line

Online banks can be just as safe as traditional banks, as long as they have deposit insurance and industry-standard security features, such as two-factor authentication for logins and encrypting your sensitive data.

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