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What Are SIPC & FDIC?

Learn how SIPC protects Monorail investments and how FDIC secures bank deposits, including coverage limits and eligibility.

Meghann Perkins avatar
Written by Meghann Perkins
Updated over 2 weeks ago

SIPC and FDIC are two key organizations that protect your money in different ways.


🔹 What Is SIPC? (Securities Investor Protection Corporation)

The SIPC protects investors if a brokerage firm fails and owes customers cash or securities. If the SEC or FINRAdetermine there are grounds for liquidation, SIPC steps in to protect customer assets.

How Does SIPC Protect My Monorail Accounts?

Monorail’s Stocks & Portfolios accounts are SIPC-insured up to $500,000, including up to $250,000 for cash claims.


🔹 What Is FDIC? (Federal Deposit Insurance Corporation)

The FDIC is a U.S. government corporation that provides deposit insurance to bank account holders. Since its creation in 1934, no depositor has lost insured funds due to a bank failure.

How Does FDIC Protect My Monorail Accounts?

Monorail’s Checking & Saving accounts (including “Spend,” “Tracks,” and “Wishlist”) were FDIC-insured up to $500,000 through Hills Bank.
⚠️ Note: Monorail’s Checking & Saving features are no longer available in the app for new users, but existing accounts remain insured.


Need More Information?

For further details on SIPC protection, visit www.sipc.org.
For FDIC coverage, visit www.fdic.gov.

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