Analyze digital bank terms for hidden risks around FDIC insurance gaps, instant account closure, and feature withdrawal that catch users off guard.
Built by Sergei Tokmakov, California-licensed attorney.
Digital banks operate differently than traditional banks. These provisions have caused significant problems for users who assumed full banking protections.
Many neobanks aren't banks—they partner with banks for FDIC coverage. Your funds may pass through multiple entities, creating gaps or delays in insurance protection.
Neobanks can close accounts immediately "for any reason" with minimal notice, freezing your funds while they investigate—sometimes for weeks or months.
Early direct deposit, overdraft protection, and other features can be removed at any time without notice, based on algorithm decisions you can't appeal.
Neobanks often require broad ACH authorization to recover fees, overdrafts, or disputed transactions from any linked external account automatically.
Unlike traditional banks with established dispute processes, neobanks may have shorter reporting windows and limited fraud protection for certain transaction types.
High-yield savings rates advertised by neobanks can change at any time without notice. The rate you sign up for isn't guaranteed.
Common terms found in neobank agreements affecting your rights and account access.
Disputes resolved through private arbitration.
Cannot join group lawsuits over account issues.
ATM fees, overdraft fees, and service charges.
Financial data shared with partners and affiliates.
Terms can change with continued use as acceptance.
Platform liability capped regardless of losses.
Agreement to receive all communications electronically.
State law that applies to disputes.
Paste terms of service below to identify potentially problematic clauses in digital bank agreements.
Get a professional legal review of your neobank agreement.
Schedule Review — $125/30min30-minute Zoom consultation to review your digital banking terms or fintech concerns.