That’s right. Wise works with partner banks. However, their accounts are still covered by up to $250k of FDIC insurance.
Insurance against collapse of the bank. FDIC doesn't insure against fraud because you expanded your trust relationship across multiple third parties with credentials to access your account.
alt Hacker News
Insurance against collapse of the bank. FDIC doesn't insure against fraud because you expanded your trust relationship across multiple third parties with credentials to access your account.