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☆ Banks in Synapse mess make progress toward releasing deposits of stranded fintech customers
▼ + stars: | 2024-07-11 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

There may be relief for the thousands of Americans whose savings have been locked in frozen fintech accounts for the past two months. Banks involved in the mess caused by the collapse of fintech intermediary Synapse have made progress piecing together account information for stranded customers that could result in a release of funds in a matter of weeks, according to a person briefed on the matter. The development comes as regulators, including the Federal Reserve and the Federal Deposit Insurance Corporation, pressure the banks involved to release funds after media and lawmakers have heightened awareness of the debacle. Beginning in May, more than 100,000 customers of fintech apps like Yotta, Juno and Copper have been locked out of their accounts. "We're strongly encouraging Evolve to do whatever it can to help make money available to those depositors," Federal Reserve Chair Jerome Powell told the Senate banking committee Tuesday.

Persons: Banks, We're, Jerome Powell, Scot Lenoir, Jelena McWilliams, Sankaet Pathak Organizations: Staff, Evolve Bank & Trust, Bank, Synapse, Federal Reserve, Federal Deposit Insurance Corporation, Evolve Locations: California

☆ How thousands of Americans got caught in fintech’s false promise and lost access to bank accounts
▼ + stars: | 2024-07-02 | by ( Hugh Son | ) www.cnbc.com time to read: +10 min

Craft had her wages deposited directly into a Yotta account and used the startup's debit card to pay for all her expenses. CNBC reached out to fintech customers whose lives have been upended by the Synapse debacle. Instead of spending years and millions of dollars trying to acquire or become banks, startups got quick access to essential services they needed to offer. They account for 60% of all new fintech account openings, according to data provider Curinos. The FDIC's exact language about whether fintech customers are eligible for coverage: "The short answer is: it depends."

Persons: Natasha Craft, Craft, fintech, Adam Moelis, Sankaet Pathak, Michele Alt, Scott Sanborn, Sanborn, LendingClub, she's, Rick Davies, Taylor Stitch, " Davies, He's, he's, Davies, hasn't Organizations: FedEx, CNBC, Federal Deposit Insurance Corp, Synapse, Indiana FedEx, Disney, Bank, Trust, JPMorgan Chase, Klaros, PayPal, Getty, Financial Technology Association, D.C, Block, Regulators, Federal Reserve, FDIC, Oakland, San, OCC Locations: Mishawaka , Indiana, Craft, Oakland , California, New York City, Santa Barbara , California, Maryland, Bristol , Connecticut, Seattle, Tennessee, Yotta, Boston, Washington, fintechs, Silicon, San Francisco

☆ Nearly $109 million in deposits held for fintech Yotta’s customers vanished in Synapse collapse, bank says
▼ + stars: | 2024-06-21 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

Ledgers of the failed fintech middleman Synapse show that nearly all the deposits held for customers of the banking app Yotta went missing weeks ago, according to one of the lenders involved. A network of eight banks held $109 million in deposits for Yotta customers as of April 11, Evolve Bank & Trust said in a bankruptcy court letter filed late Thursday. About one month later, the ledger showed just $1.4 million in Yotta funds held at one of the banks, Evolve said. Yotta CEO and co-founder Adam Moelis said in response to this article that Synapse has said in court filings that Evolve held nearly all Yotta customers deposits. "According to the Synapse trial balance report provided on May 17, there are $112 million of customer funds held at Evolve," Moelis said.

Persons: Adam Moelis, Moelis Organizations: Evolve Bank, Trust, Evolve, Synapse, Federal Reserve, Fed Locations: Memphis , Tennessee

☆ Synapse bankruptcy trustee says $85 million of customer savings is missing in fintech meltdown
▼ + stars: | 2024-06-07 | by ( Hugh Son | ) www.cnbc.com time to read: +3 min

Al Drago | Bloomberg | Getty ImagesThere is an $85 million shortfall between what partner banks of fintech middleman Synapse are holding and what depositors are owed, according to the court-appointed trustee in the Synapse bankruptcy. Customers of fintech firms that used Synapse to link up with banks had $265 million in balances. But the banks themselves only had $180 million associated with those accounts, trustee Jelena McWilliams said in a report filed late Thursday. The missing funds explain what is at the heart of the worst meltdown in the U.S. fintech sector since its emergence in the years after the 2008 financial crisis. She said Synapse apparently commingled funds among several institutions, using multiple banks to serve the same companies.

Persons: Jelena McWilliams, Al Drago, Andreessen Horowitz, McWilliams, Bank —, it's, Banks, Cravath, Judge Martin Barash Organizations: Federal Deposit Insurance Corporation, Banking, Housing, Urban Affairs Committee, Washington , D.C, Bloomberg, Getty, Synapse, Evolve Bank & Trust, American Bank, AMG, Bank, Partner Bank Locations: Washington ,, U.S, what's

☆ Savings app CEO says 85,000 accounts locked in fintech meltdown: ‘We never imagined a scenario like this’
▼ + stars: | 2024-06-01 | by ( Hugh Son | ) www.cnbc.com time to read: +4 min

Instead, his company has inadvertently been a source of deep pain for thousands of customers who relied on Yotta accounts to receive paychecks, pay bills and save for emergencies. For the past three weeks, 85,000 Yotta customers with a combined $112 million in savings have been locked out of their accounts, Moelis told CNBC. Accounts at crypto firm Juno and at Copper, which offered savings accounts for families and teens, also have been frozen. Adam Moelis, Co-Founder at Yotta Savings. Representatives of the agencies have pointed to efforts they've made to encourage banks to manage the risks of using fintech partners.

Persons: Oscar Wong, Adam Moelis, Trust —, Moelis, Dave, We've, they've Organizations: Synapse, Bank, Trust, CNBC, Evolve Bank, Evolve, Mercury, Yotta Savings, Federal Reserve, Federal Deposit Insurance Corp Locations: Tennessee, Yotta, fintech

☆ Fintech nightmare: 'I have nearly $38,000 tied up' after Synapse bankruptcy
▼ + stars: | 2024-05-22 | by ( Hugh Son | ) www.cnbc.com time to read: +4 min

The situation deteriorated in April after Synapse declared bankruptcy following the exodus of several key partners. That has left users of several fintech services stranded with no access to their funds, according to testimonials filed this week in a California bankruptcy court. One customer, a Maryland teacher named Chris Buckler, said in a May 21 filing that his funds at crypto app Juno were locked because of the Synapse bankruptcy. Synapse had contracts with 20 banks and 100 fintech companies, resulting in about 10 million end users, according to an April filing from founder and CEO Sankaet Pathak. The freeze-up of customer funds exposes the vulnerabilities in the banking as a service, or BAAS, partnership model and a possible blind spot for regulatory oversight.

Persons: Andreessen Horowitz, Chris Buckler, Buckler, Dave, Juno, Sankaet Pathak, Pathak, Joseph Dominguez, Dominguez, Jason Mikula, Mikula Organizations: Istock, Synapse, Evolve Bank & Trust, Mercury, CNBC, Evolve Bank, Trust, Regulators, FDIC, Federal Reserve Locations: California, Maryland, Joseph Dominguez of Sacramento , California, Silicon

Step, a mobile banking platform geared toward teen customers, announced Wednesday that users may now earn 5.00% annually on savings balances of up to $250,000. View Full Details Start banking Step, FDIC Insured AccountStep - Banking for Teens Start banking Step, FDIC Insured Account Details Rewards Earn rewards by using a Step Visa Card at qualifying merchants — restaurants, clothing stores, gas stations, and more. Annual Fee $0 Recommended Credit No Credit Regular Annual Percentage Rate (APR) None Editor's Rating 4.2 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.2 out of 5 Stars Pros & Cons Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Other savings account optionsIf you do not qualify to earn 5.00% at Step or want to consider other options, here are some accounts from our best savings account guide that you might like:Alliant Kids Savings Account: This is listed as our top pick for kids. Once a child turns 13, they'll be able to open a teen checking account; the Alliant Kids Savings Account can remain as their savings account.

Students with a limited credit history are unlikely to be approved for the best credit cards, and even some student credit cards require good to excellent credit. Step is a secured credit card that has a dynamic credit limit that is attached to the bank account balance -- it operates like a debit card but it is a credit card, which is what enables the unique credit building feature. Best Credit Cards for Students With No Credit of 2023Methodology: How we chose the best credit cards for students with no creditInsider's credit cards team looked at dozens of student credit cards, secured credit cards, and starter credit cards and narrowed down the list by choosing only those that students with limited or no credit have a good chance of qualifying for. Credit Cards for Students With No Credit Frequently Asked Questions (FAQ)Which credit card is best for students with no credit? US Bank Altitude Go Secured Credit Card ReviewBest for Students Under 18Step Secured Visa CardWhile credit card accounts are only available to those aged 18 and over, the Step Secured Visa Card offers a solution for students looking to build credit who haven't yet reached legal adulthood.

Pros Check mark icon A check mark. Pros Check mark icon A check mark. No minimum opening deposit Check mark icon A check mark. Eligible for new accounts after your child turns 13 Check mark icon A check mark. But if you'd like to open a savings account for your child, it only lets you open one of the bank's regular savings accounts as a joint bank account.

Best interest rates for savings accountsUFB Preferred Savings 4 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4 out of 5 Stars Annual Percentage Yield (APY) 4.55% (as of 02/22/2023) Minimum Deposit Amount $0 View Full Details Learn moreUFB Preferred Savings 4 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4 out of 5 Stars Annual Percentage Yield (APY) 4.55% (as of 02/22/2023) Minimum Deposit Amount $0 View Full Details Learn more on UFB's site. Best interest rates for CDsCFG Bank CD 4 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4 out of 5 Stars Annual Percentage Yield (APY) 4.50% to 5.15% Minimum Deposit Amount $500 View Full Details Learn moreCFG Bank CD 4 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4 out of 5 Stars Annual Percentage Yield (APY) 4.50% to 5.15% Minimum Deposit Amount $500 View Full Details Learn more On CFG's website. Alliant Certificate 4 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4 out of 5 Stars Annual Percentage Yield (APY) 4.25% to 5.00% Minimum Deposit Amount $1,000 View Full Details Learn moreAlliant Certificate 4 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4 out of 5 Stars Annual Percentage Yield (APY) 4.25% to 5.00% Minimum Deposit Amount $1,000 View Full Details Learn more Alliant Credit Union, NCUA insured. Primis Premium Checking 4.5 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.5 out of 5 Stars Annual Percentage Yield (APY) 4.35% Minimum Deposit Amount $1 Fees no monthly service fees View Full Details Learn morePrimis Premium Checking 4.5 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.5 out of 5 Stars Annual Percentage Yield (APY) 4.35% Minimum Deposit Amount $1 Fees no monthly service fees View Full Details Learn more Primis Bank, FDIC Insured. Capital One 360 Performance Savings 4.5 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.5 out of 5 Stars Annual Percentage Yield (APY) 3.40% (as of 02/02/23) Minimum Deposit Amount $0 View Full Details Learn moreCapital One 360 Performance Savings 4.5 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.5 out of 5 Stars Annual Percentage Yield (APY) 3.40% (as of 02/02/23) Minimum Deposit Amount $0 View Full Details Learn more On Capital One's site.

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