Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money

NerdWallet's Smart Money Podcast

NerdWallet Personal Finance

Business, Education, Investing, How To

4.2 • 665 Ratings

🗓️ 18 November 2024

⏱️ 25 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode: Learn how to distinguish neobanks from traditional banks, understand FDIC insurance, and get tips for affordable holiday hosting. What is the difference between a neobank and a traditional bank? Is my money safe in an online bank or neobank? Hosts Sean Pyles and Sara Rathner discuss how to distinguish a neobank from a traditional bank and ways to safeguard your savings, helping you understand what to look for in financial institutions. But first, they begin with a discussion of affordable holiday hosting, with tips and tricks on hosting a potluck, budgeting for extra food, and setting boundaries with overnight guests. Then, NerdWallet banking expert Spencer Tierney joins Sean and Sara to discuss the ins and outs of online banks and neobanks. They discuss how FDIC insurance works, what to look for in a neobank’s fine print, and the potential risks of using a neobank. Check out this episode on your favorite podcast platform, including: Apple Podcasts Spotify NerdWallet stories related to this episode: 8 Best Online Checking Accounts of 2024 How to Open a Bank Account Online in 4 Steps Best Free Checking Accounts of 2024 Have a money question? Text or call us at 901-730-6373. Or you can email us at [email protected]. To hear previous episodes, go to the podcast homepage. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:30.6	Thanksgiving is in 10 days. Wow. This year has flown by and also gone very slowly. If you haven't finalized your menu yet,
0:40.2	honestly, you're probably not alone. So, Elizabeth, how are you spending your Thanksgiving?
0:43.9	Well, this will be my first one in Houston, and guess what? What? I got invited to my first
0:50.7	Friendsgiving. Yay. So I think I'll spend the day house hopping. I will be attending
0:56.2	a Friendsgiving and just crashing anyone's house who has food, really. But of course, I'm going to
1:00.8	bring a dish to each home I crash. How about you? Well, I plan to transport a casserole across
1:05.8	several state lines. And hopefully it arrives in one piece. But the beauty of most casseroles
1:10.7	is that by design,
1:11.6	they already look like they got shaken up in the car a little bit.
1:21.1	Welcome to NerdWallet's Smart Money Podcast. I'm Sarah Raffner. And I'm Elizabeth Ayola.
1:27.2	This episode, Sean and I answer a listener's question about how to tell a neobank from a
1:32.8	traditional bank and how safe your money is if you go the neobank route.
1:36.5	We even partake in a little real-time online research, which is surprisingly a lot more fun
1:41.4	than it sounds.
1:42.3	I'm definitely surprised by that, too.
1:45.0	I was shocked, but let me tell you, it was a lot of fun. We had a great time. I'm going to take your word for that,
1:48.6	Sarah, but I'm still siding you. Don't hate it until you listen to it. But first, let's talk turkey,
	...

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