Advertiser Disclosure

Is Current FDIC Insured?

Written by Banks Editorial Team
4 min. read
Written by Banks Editorial Team
4 min. read

Sponsored By

Current is a financial technology company that lets users create checking and savings accounts. The company has attractive perks, such as overdraft protection and a 4% APY on savings pods. Many mobile banking solutions offer better perks than financial institutions, but it’s human nature to wonder if online banking platforms like Current are too good to be true. They offer great advantages for members, but FDIC insurance is critical. If a bank does not have this insurance policy, you should put your money somewhere else. We will discuss Current and if it is FDIC insured. 

Sign up for Current - The future of mobile banking
Earn 4.00% APY on your savings. No overdraft fees/hidden fees. Get paid up to two days faster with direct deposit. Earn up to 15x the points on swipes.

What is the FDIC (Federal Deposit Insurance Corporation)?

Banking has changed a lot throughout the years. But, while the internet has enabled virtual banks for the first time, the web is far from the only innovation in the banking industry.

At one time, it wasn’t a good idea to put money in the bank. Small banks became insolvent during financial panics in the 1800s (depressions were referred to as financial panics back then). Insolvency didn’t only hurt the banks, but it also hurt consumers and small business owners. Back then, if the bank went out of business, your money was gone. So it’s no wonder some people hid their money under rugs. Many people saw it as a safer option during financial panics. 

This common consensus wasn’t great for the economy, especially during bad times. Small businesses borrow loans from banks, but those financial institutions can’t give out loans if people don’t deposit money in the bank. This risk was present for centuries, but the Great Depression put people on edge and forced the government to make several changes. 

One of those changes — the Federal Deposit Insurance Corporation (FDIC) — was established in President Franklin D. Roosevelt’s Banking Act of 1933. This act created sweeping changes in the banking industry and provided critical safeguards in case banks went under. 

The FDIC is still standing today, and it protects the first $250,000 of every bank account in the event the bank becomes solvent. With this protection, consumers felt more confident putting their money into bank accounts, and stashing money under the rug became an idea from a bygone era rather than a continued practice. 

Most consumers look for banks that are FDIC insured. Working with a bank without this policy puts undue and unnecessary risk on a consumer. 

How Does FDIC Insurance Work? 

The FDIC insures up to $250,000 for each bank account that it covers. If you have $50,000 in a bank that goes out of business, the FDIC will spot you $50,000. However, if you have a $300,000 bank account that becomes worthless because your bank becomes insolvent, you only receive $250,000 back from the government. The other $50,000 is gone.

You can put your funds in multiple bank accounts if you exceed $250,000 in one of them. A consumer can get insured up to $250,000 per bank account, so it’s possible to have over $250,000 insured at a bank.

Sign up for Current - The future of mobile banking
Earn 4.00% APY on your savings. No overdraft fees/hidden fees. Get paid up to two days faster with direct deposit. Earn up to 15x the points on swipes.

Which Accounts are Insured by the FDIC?

The FDIC insures several types of bank accounts, including the following:

  • Checking accounts
  • Savings accounts
  • Certificates of deposit
  • Money market accounts

These accounts provide risk-free returns for consumers. While most of the interest rates are low, Current’s 4% APY on savings accounts comfortably exceeds the average interest rate

What Amount is Covered by FDIC?

The FDIC covers up to $250,000 per bank account. If you have more than $250,000 in one account, split the funds across several accounts, so your cash remains insured. 

What is Current and How Does It Work?

Current is a fintech company that provides banking services for consumers through its partnership with Choice Financial Group. In addition, the company provides several features, such as spending insights to strengthen your finances and the ability to trade crypto right from their mobile app. 

Unlike traditional banks, Current is entirely mobile. That means they don’t have physical branches. Instead of depositing and withdrawing cash at a brick-and-mortar bank, you can make those transactions at ATMs conveniently located in retail stores and throughout the U.S. Current’s partnership with Allpoint allows their users to not pay any fees on deposits and withdrawals at over 55,000 in-network ATMs.

Is Current FDIC Insured?

Current has FDIC coverage through its affiliation with Choice Financial Group. If you open a bank account using Current and deposit funds, the Federal Deposit Insurance Corporation keeps your money safe, even if Current and Choice Financial Group go out of business. The money you earn and put in your bank account is yours. Current and its partner are regulated, so you don’t have to worry about an FTX fiasco or anything of that nature.

Current and Choice Financial Group

While Current may look like an online bank at first glance, it’s important to note they are a fintech company that provides banking services. Their partnership with Choice Financial Group and online nature allows them to offer bank accounts with better perks than what you can find at traditional banks.

What Banking Services Does Current Offer?

Current offers several banking services that can fortify your finances. Here are some of the great features you can expect:

  • Create checking and savings accounts: While this sounds basic, not every online bank lets you create checking and savings accounts. Some only have compatibility with one type of account. Current lets you create multiple checking and savings accounts under a central account. Having a Current account with several checking and savings accounts makes it easier to categorize your finances. Allocating a percentage of each payday to a separate bank account for taxing purposes can make tax season more manageable.
  • Current Debit Card: You won’t have to wait for your Current debit card to arrive in the mail. It’s a virtual card that you can use right away, and since it’s virtual, it comes with additional protections. You can freeze your card within a few clicks if it falls into the wrong hands and instantly block transactions from the Current mobile app. You can add extra layers of protection by setting up fingerprint and face ID locks to prevent others from accessing your debit card. Current also send a physical copy of your card in the mail, and you can earn cashback on every purchase you make with a debit card. You don’t have to rely on credit cards to get rewarded for everyday purchases.
  • Current Overdrive: Overdraft fees are annoying, and some banks charge these fees even if you overdraw your account by $1. Pumping gas into your car when you have a low balance can result in an overdraw because gas companies place a credit on your bank account. With Overdrive, Current users don’t get overdraft fees until they overdraw their accounts by over $200. This gives people time to fix overdrawn accounts without having to worry about overdraft fees.

How to Open an Account with Current 

A Current account gives you access to a better banking experience. Higher savings rates, more overdraft protection, and incredible debit card cashback rewards make Current an enticing choice for many consumers. It’s no wonder over four million people use Current for their mobile banking experience. 

You can get started with Current by visiting their website and downloading the mobile app. Current makes it easy to open bank accounts that reward you for sticking around instead of taking you for granted.

Sign up for Current - The future of mobile banking
Earn 4.00% APY on your savings. No overdraft fees/hidden fees. Get paid up to two days faster with direct deposit. Earn up to 15x the points on swipes.

You may also like

Internet banking is becoming increasingly popular due to its convenience. But knowing the pros and cons before settling for one is crucial.
Read more

Advertisement Disclosure

Product name, logo, brands, and other trademarks featured or referred to within are the property of their respective trademark holders. This site may be compensated through third party advertisers. The offers that may appear on’s website are from companies from which may receive compensation. This compensation may influence the selection, appearance, and order of appearance of the offers listed on the website. However, this compensation also facilitates the provision by of certain services to you at no charge. The website does not include all financial services companies or all of their available product and service offerings.