Don't Store Money in Payment Apps

We’ve all used payment apps like Venmo or Cash App to split the bill at a restaurant, pay a friend gas money, or collect bill money from roommates. While payment apps are perfectly fine and secure to use for these kinds of transactions, it’s important not to use them as a substitute for a traditional bank or credit union account.

 

That’s because payment apps are not federally insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). Which means if the payment app goes bankrupt, becomes involved in fraudulent activities, or faces any legal issues, your funds might not be protected, and you could lose all the money you’ve stored in the account.

 

To ensure your funds are safe, keep them in a federally insured institution, like a credit union or a bank. Credit Union West offers a variety of checking and savings accounts that are all federally insured up to $250,000 by the NCUA. To earn money on your deposits, check out our Heritage High-Yield Checking account or our Savings Certificates.