Are funds in Carta’s third-party bank partner federally insured?
Distributions will quickly pass through our banking partner, Column, N.A., for the benefit of (FBO) your fund, and into each of your investors’ bank accounts.
Yes, the deposits in the Column N.A. account are eligible for “pass through” FDIC deposit insurance up to $250,000 per fund. Carta is a fintech company, not an FDIC-insured depository institution. FDIC deposit insurance only covers the failure of an insured depository institution. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply.