No, your investment account is not a bank account. We’re not a bank - we don’t take deposits, nor do we pay interest on the cash balance of your account.
We maintain the funds retail investors use to invest through Prosper in a pooled account at Wells Fargo Bank, N.A., a depository bank, titled in Prosper’s name “for the benefit of” (FBO) our investors.
Funds in this FBO account will always be maintained at an FDIC member financial institution, subject to applicable limits and conditions. FDIC insurance only covers the failure of Wells Fargo, the FDIC-insured depository institution. Investors have no direct relationship with Wells Fargo Bank, N.A. by virtue of participating on our marketplace.
Any invested funds are not insured by the FDIC, are not deposits, are not guaranteed by any agency of the federal government or by Wells Fargo, and may lose value