A Primer on FDIC Insurance

Recently we have received a number of inquiries regarding the specifics of how funds at Beam are FDIC-insured through our sponsoring financial institution. We are appreciative of your interest and questions about Beam.

A Brief History of the FDIC

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation providing deposit insurance to millions of depositors in US banks, which at present constitutes a universe of 5,844 banks. The 1933 Banking Act during the Great Depression (June 16, 1933) gave birth to the FDIC in an effort to restore trust in the American banking system.

The insurance limit was initially US $2,500 per account. Since the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2011, the FDIC insures deposits up to US $250,000 per account.

Today, the FDIC as a government corporation plays an essential role in ensuring the soundness, integrity and proper governance of the US banking system. Consumer trust in US banks is intimately tied to the behind-the-scene, everyday work of the FDIC staff members around the country.

How Your Funds at Beam are FDIC-Insured

Per our Terms of Service (http://meetbeam.com/terms), “Beam Account means the Evolve Bank & Trust deposit account in your name opened by you using the Platform. The Platform uses Synapse Financial Technologies, Inc. (“Synapse”), a third-party bank software provider and agent of Evolve Bank & Trust, Member FDIC (the “Bank”) to open these FDIC-insured accounts.” As a general matter, bank accounts offered by ANY agents of ANY FDIC member bank in the United States will, by law, be FDIC-insured.

Synapse is the core processor who facilitates deposit account opening of Beam customers at Evolve Bank & Trust, Member FDIC. When a Beam account is opened, you are effectively opening a bank account at Evolve Bank through Beam’s mobile app and Synapse’s FFIEC-approved core processing platform. The funds each Beam customer transfers into Beam are deposited directly at Evolve Bank & Trust and are FDIC-insured. In no way does Beam hold the funds, as all funds are transferred within the ACH network directly from bank to bank, by law, and both remitting and receiving bank accounts are under the name of the same Beam customer, i.e. you.

In short, your funds at Beam are and can only be held at an FDIC-insured bank — in this case, Evolve Bank & Trust — as per the Evolve Bank & Trust Deposit Agreement that Beam is required to disclose when customers onboard the Beam mobile app. Without question, your funds at Beam are fully FDIC-insured.

Our team here at Beam is more than happy to provide any further clarifications regarding this matter. Email us and we’ll be listening: yourfriends@meetbeam.com, or call or leave us a voicemail at our customer hotline at 650–550–0028.

Thanks again for your support and trust in Beam as we grow to evolve our service, and work to change banking for the better.