About Us  > Blog

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.


Leave a Comment

Prosper moderates all comments and will approve those that are directly relevant to the post. We do not publish comments that are spam, are offensive or appear to pass you off as another person.

(required)
(required) Email will not be published.
 

Comment Policy

 

*
To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.
Click to hear an audio file of the anti-spam word

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 »

Connect with us

Search

Lenders

PROSPER HITS ANOTHER RECORD: $100 MILLION IN APRIL ORIGINATIONS

By Prosper on 05/1/14   [ 3 ]

Just one month after announcing that we crossed $1 billion dollars in loans, I’m happy to report that we’ve hit another significant milestone. In April, a record $100 million in loans was originated through the platform. This is up 400% from one year ago and 30% month-over-month. More importantly, it is indicative of the incredible [...]

Read More

Prosper Gives Back: A Social Timeline Recap

By Prosper on 04/10/14   [ 0 ]

As of yesterday, the Prosper Gives Back campaign has come to a close. After hitting our $1 billion dollar mark, we connected with the whole Prosper community, we spoke with you guys, and we celebrated our butts off! While giving out $2,000 a day was exhilarating and fun, the greatest reward to us was hearing [...]

Read More

Prosper Crosses $1 Billion in Loans Funded

By Prosper on 04/3/14   [ 0 ]

Today is a huge day for Prosper. We crossed over the $1 billion mark in peer-to-peer loans. Its been a long road since the first loan in 2006. Since then the $1 billion dollars issued through Prosper went towards helping people fix their debts, pay medical bills, chase their dreams, and much more. The greatest [...]

Read More

« Older Entries

Monthly Archive


Notice: Blogs and other materials posted on or linked from this page that use the name "Prosper" generally use that name to refer to Prosper Marketplace, Inc. if published before January 31, 2013 and to refer to Prosper Funding LLC if published on or after February 1, 2013.