KEY POINTS

  • Thousands of Americans will receive little or nothing from savings accounts that were locked during the collapse of fintech middleman Synapse.
  • Customers believed the accounts were backed by the full faith and credit of the U.S. government.
  • CNBC spoke to a dozen customers caught in the predicament, people who have lost sums ranging from $7,000 to well over $200,000.
  • While there’s not yet a full tally of those left shortchanged, at fintech Yotta alone, 13,725 customers say they are being offered a combined $11.8 million despite putting in $64.9 million in deposits.
  • venusaur@lemmy.world
    link
    fedilink
    arrow-up
    33
    arrow-down
    1
    ·
    1 month ago

    This sucks big time. Real question, what motivated people to put huge sums of money into a startup company? Some deal on a loan?

      • venusaur@lemmy.world
        link
        fedilink
        arrow-up
        6
        arrow-down
        3
        ·
        1 month ago

        Regardless though. What’s the the incentive of some new app over a bank or some already known app?

        • SuperIce@lemmy.world
          link
          fedilink
          English
          arrow-up
          11
          ·
          1 month ago

          Interest rates. Then again, you can go for other more reputable brands that have good interest rates. I was making around 5% with Vanguard cash plus for some time. It’s based on money market though, so as federal interest rates went down, so did the rates for that account. There are smaller companies with slightly better rates, but IMO Vanguard is way more trustworthy than all these new Fintech startups and I know the FDIC insurance is legit.

          • Eezyville@sh.itjust.works
            link
            fedilink
            English
            arrow-up
            3
            ·
            1 month ago

            Yes I agree. I was thinking of switching from my current bank to one that had a 5% interest for my emergency fund but it’s a new bank to me. I didn’t recognize the name. Decided not to do it because I don’t know who they are. I’m referring to Openbank.

    • brossman@infosec.pub
      link
      fedilink
      English
      arrow-up
      10
      ·
      1 month ago

      not a huge sum, but I had $10k in it, because it was a fun bullshit app that scratched the lottery itch despite it earning less than regular interest over my time with it