In the U.S., digital banks can be FDIC-insured, just like traditional brick-and-mortar banks. The Federal Deposit Insurance Corporation (FDIC) provides deposit insurance that covers up to $250,000 per depositor, per insured bank. However, it's important to note that not all digital banks are FDIC-insured.
Before opening an account with a digital bank, it is crucial to verify their FDIC insurance status. Most reputable digital banks prominently display their FDIC membership and provide information about the extent of deposit insurance on their websites or mobile apps. Additionally, you can confirm an institution's FDIC-insured status by using the FDIC's BankFind tool or contacting the FDIC directly for verification.