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Lender funds have FDIC coverage

by Prosper Bryan on 10/6/08

FDICIt’s not surprising that lenders have recently been calling and emailing us to find out if their Prosper cash balances are FDIC insured. We want to take this opportunity to let our lenders know that their cash balances are, in fact, FDIC insured.  Prosper is not a bank, does not take deposits, and is not FDIC insured. But the funds that Prosper lenders place with Prosper to make bids on borrower listings are maintained at Wells Fargo Bank, which is FDIC insured, and those funds get pass-through FDIC coverage up to $100,000 (note that this amount may increase to $250,000 after the passage of recent legislation).

So during these challenging economic times, you can be comfortable knowing that the funds you place with Prosper have this protection.

Call or email us questions. We’re here to help you.


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6 Responses


quantumslip | October 6th, 2008 at 11:05 am

So if we have existing accounts with Wells Fargo, do we count them separately to determine FDIC coverage (i.e. if we have 250k in our personal checking accounts, is our Prosper account still covered up to 250k as well?) I know this won’t be a problem for most people, but it would be nice to know.


NewHorizon | October 6th, 2008 at 3:53 pm

As a suggestion for the subject of a future blog entry, but related to Wells Fargo: maybe discuss FBO accounts, what they are, and what sorts of rules applies to Prosper and pooled accounts.


Prosper Blog | October 9th, 2008 at 7:34 pm

@ quantumslip

Yes, the money in your Prosper account enjoys separate FDIC insurance coverage of $100,000 (or more based on current legislation) through Wells Fargo. Any other amounts you may have on deposit in personal accounts at Wells Fargo are counted separately from your Prosper account for FDIC insurance purposes. For more information about FDIC insurance policies, see: http://www.fdic.gov/deposit/Deposits/insured/basics.html


NewHorizon | October 10th, 2008 at 9:49 am

The Treasury is now paying interest on bank reserves. Does this have any affect on the FBO accounts?


Limu | October 11th, 2008 at 10:43 am

Is the FDIC coverage on the first $250,000 of the Prosper bank account or is that up to $250,000 per individual lender?


Prosper Blog | October 13th, 2008 at 3:38 pm

@ Limu

Yes, the money in your Prosper account enjoys separate FDIC insurance coverage of $100,000 (or more based on current legislation) through Wells Fargo. Any other amounts you may have on deposit in personal accounts at Wells Fargo are counted separately from your Prosper account for FDIC insurance purposes. For more information about FDIC insurance policies, see: http://www.fdic.gov/deposit/Deposits/insured/basics.html


posted in Lenders,Prosper News 6 comments »

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