Upon depositing cash into your SoFi Money cash management account, the balance is swept of our program banks where it earns a variable rate of interest and is then FDIC insured.
However, while in transit, it may be necessary to temporarily hold your funds in a clearing bank for up to two (2) business days. While in a clearing bank SoFi Securities does not maintain a private bond to cover amounts at the clearing bank in excess of the applicable FDIC coverage amount of $250,000.
What this means: In the event of a receivership, insolvency, or another similar circumstance that may occur while your Program Deposits are at the clearing bank, only the first $250,000 in aggregate deposits in the clearing account (which may include your deposits and deposits from other SoFi Money™ Customers) will be subject to FDIC coverage.