What is FDIC insurance and how does it benefit your USD Interest Account?

If you’re funding your Uphold USD Interest Account², you might’ve come across the term “FDIC insurance.²”

But what does it actually mean, and why does it exist in the first place?

Let’s break it down.

What is the FDIC?

The Federal Deposit Insurance Corporation (FDIC²) is an independent U.S. government agency that protects bank deposits—up to a certain limit—if a bank fails.

In plain terms: if an FDIC-insured² bank goes out of business, your eligible deposits are protected, automatically.

How does FDIC insurance work with the USD Interest Account?

Your Uphold USD Interest Account² is designed to help you earn on idle USD — with no lockups, no fees, and full access to your funds whenever you need them.

Behind the scenes, your money is held with FDIC-insured² banks via a network of custodial accounts. Deposits are automatically distributed across multiple institutions, with no more than $250,000 held at any one bank.

This structure gives you up to $2.5 million in total FDIC insurance — 10x the standard limit — while keeping your money accessible and flexible at all times.

What does FDIC insurance cover—and how much?

FDIC insurance² covers up to $250,000 per depositor, per insured bank, per ownership category.

You don’t need to do anything to activate this coverage. It’s applied automatically when your eligible USD funds are held at participating FDIC-insured² institutions.

What isn't covered?

FDIC² insurance only applies to USD held at insured banks. It does not cover:

Only your USD Interest Account² balance is eligible for this protection.

Why choose an Uphold USD Interest Account?

In addition to FDIC² insurance, your USD Interest Account² offers:

Start earning with as little as $1. Your funds are always in your control and ready when you need them.

Still have questions?

Visit our Help Center for more details about how FDIC² coverage applies to your USD Interest Account.²

Sign Up for a USD Interest Account Now

FOOTER

¹ Balances of $1,000 or more earn 4.5% APY. Balances under $1,000 earn 2% APY. Rate is subject to change.

² The USD Interest Account is a brokerage account offered by Atomic Brokerage LLC, member FINRA/SIPC, for participation in the Atomic Brokerage Cash Sweep Program. Cash deposited in the account solely for the purpose of accessing the Cash Sweep Program is not protected by SIPC. For full details about the program, see the Terms & Conditions. Neither Atomic Brokerage, nor any of its affiliates, is a bank.

³ You are able to have up to $2,500,000 ($250,000 per depositor, per insured bank for each account) Federal Deposit Insurance Corporation (FDIC) insurance for deposits in your Atomic Brokerage account when those deposits are swept to all ten Program Banks in the Atomic Cash Sweep Program. Funds held in your Atomic Brokerage account are not FDIC insured. Funds held in your Atomic Brokerage account solely for the purpose of accessing the Cash Sweep are also not protected by SIPC.

⁴ "Industry best" refers to the highest available rate for similar USD interest accounts at the time of publication, based on our analysis of publicly available data. APY rates are variable and subject to change at any time. Comparison is based on interest rates from major financial institutions and platforms. Terms and conditions apply. Please review our full terms for more details.

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