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3 mins read

January 23, 2023

How to claim FDIC Insurance?

Everything you need to know about claiming FDIC Insurance

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TL;DR

This information is purely for educational purpose with actionable steps in the unlikely event of the banking partner’s failure. Our banking partner Evolve Bank and Trust has no solvency issues whatsoever.

Juno does not custody cash or crypto deposits. All cash deposits are held with our partner bank and FDIC-Insured up to $250,000. Since FDIC insurance was created, no depositor has lost a single dollar of insured funds due to bank failure.

Therefore, in the unlikely event of our partner bank’s failure, all Juno account holders can claim cash deposits by following official procedures set by the Federal Deposit Insurance Corporation (FDIC).

Juno is a crypto-native digital banking platform. Juno, on its own, does not have custody of customers' cash and works with a banking partner to facilitate all banking services. Juno's current banking partner is Evolve Bank & Trust, a licensed US-based bank which provides these banking services.

Primarily with this partnership, we have enabled a US checking account facility for all US users who open accounts via Juno. In addition, our banking partner is an FDIC (Federal Deposit Insurance Corporation) member, and every individual user's cash deposits are insured up to $250,000.

FDIC is an independent agency set up by Congress under the Banking Act of 1933 to restore trust in the American financial system after the collapse of many banks during the Great Depression.

Since FDIC insurance began, no depositor has lost a single dollar of insured funds due to bank failure. And there have been many bank failures; here is the list of failed banks on their official website since October 2000.

Juno's USD deposits are also applicable under FDIC insurance up to $250,000 via our banking partner, Evolve Bank & Trust. In the unlikely event of our partner bank’s failure, Juno account holders will be able to claim their cash deposits.

Here is the detailed step-by-step process to claim FDIC insurance in case of bank failure.

  1. You will get prior notification from Juno based on publicly available information on our partner bank's failure. Public information on the failed bank list will also be available on the official FDIC website. Historically, during bank failure, all bank information was updated on their website when the FDIC initiated the procedure.
  1. You will get real-time updates when you open the partner bank tab on the FDIC website. Under the filing claims section, there will be a process stating how to file the claims. You can start by filing the Depositor claims form and emailing it to their official address. The procedure can also be done offline by visiting one of their offices.
  1. Once you submit the required form, you must submit additional documentation for verification. This may include a copy of your driver's license or other government-issued ID, your Social Security number, and proof of account ownership, such as a bank statement or account passbook.
  1. Once submitted, the FDIC will review it and determine the payout process on your insurance coverage. Once the claim is approved, the FDIC will send you confirmation and instructions on accessing your insured funds.
  1. To access the funds, the FDIC will either arrange for the transfer of your insured deposits to another FDIC-insured bank or will mail you a check for your insured funds. In this process, Juno will help you to keep track of all communications between you and FDIC, including claim numbers and instructions to access your insured funds.
  1. In the overall process, our team will directly communicate with the FDIC agency to address any questions or concerns. We will provide all the necessary information and assist you with the claim process. For depositors, there is a dedicated FAQ page on FDIC official website.

The process for claiming FDIC insurance in case of a bank failure has generally remained the same. Still, it may vary depending on the bank's circumstances and customers' account types and balances.

Most importantly, the priority of claims is given first to all depositors, then to debtors, stockholders, etc. Historically all depositor claims for bank failures filed under FDIC insurance have been issued. It is also important to note that the FDIC insurance coverage limit is $250,000 per depositor per FDIC-insured bank, so any deposits above that amount may not be insured. Hence, we recommend Juno account holders only make cash deposits up to $250,000.

Juno is also in the process of building a modular banking stack, similar to our new modular crypto stack. This will allow us to work with multiple banks simultaneously to offer higher FDIC insurance, derisk the platform further, and ensure the continuity of banking operations while safeguarding customers’ cash deposits.

PS: Our current banking partner is completely solvent. The information above is purely for educational purposes, with actionable steps in the unlikely event of a banking partner’s failure.

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Juno (CapitalJ Inc.) is a financial technology company, not a bank. Banking services provided by Evolve Bank and Trust, Members FDIC. The Juno card is issued by Evolve Bank and Trust, Member FDIC, pursuant to license by Mastercard International.

Cryptocurrency services are powered by Zero Hash LLC and Zero Hash Liquidity Services LLC and may not be available in all states. Terms and conditions apply. When you buy or sell cryptocurrency, a difference between the current market price and the price you buy or sell that asset for is called a spread. However, unlike most other exchanges, Juno does not charge an additional trading fee. All forms of investments carry risks, including the possible loss of principal.

Cryptocurrency is not subject to FDIC insurance. The cryptocurrency assets in your Zero Hash account are not held at Juno or Evolve Bank and Trust. Juno and Evolve Bank and Trust are not responsible for the cryptocurrency assets held in any Zero Hash account. Neither Juno, nor Evolve Bank and Trust, is involved in the purchase, sale, or exchange of fiat funds for cryptocurrency or custody of the cryptocurrencies. Crypto on Juno is not currently available in HI and NY. Cryptocurrencies are highly speculative in nature, involve a high degree of risk and can rapidly and significantly decrease in value. It is reasonably possible for the value of cryptocurrencies to decrease to zero or near zero. This does not constitute investment advice.

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