FDIC insurance on Primis Savings from $250K to $2M?

Finance
1

I just got this message from Primis Bank,

IMPORTANT ACCOUNT UPDATES

In the near future, Primis Savings customers will receive updated terms and conditions within their banking app. These updates, along with recent updates, are specific to extended FDIC insurance coverage. Primis Savings customers now have additional coverage up to approximately $2 million in FDIC insurance.

We do the work in the background while you continue to access and manage your funds from your app or online banking. There are no fees, and your account features and access have not changed. This additional coverage is provided through a network of participating banks and delivered seamlessly and automatically.

How legit is this in reality?

2

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3

They are going the Fidelity route and spreading your money amongst various FDIC partner banks. It’s legit, although your money has to actually be deposited in the partner bank to qualify for insurance, and not simply in transit.

Personally, I would trust Fidelity a lot more than Primis when it comes to managing a distributed system like this.

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4

It’s legit. Except when that network of banks overlaps with banks you already have funds at.

5

Updated title to reflect that this is specific to Primis, not all FDIC coverage.

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