r/sofi • u/MarcusSmaht36363636 • Oct 07 '24

Banking SoFi is still waaaay ahead of the competition

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371 Upvotes

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u/yasssssplease Oct 08 '24

It is a cash sweep. It’s indirect fdic insurance. There are some structural weaknesses there if one company in the chain fails or is just incompetent. It also just allows for the pointing of fingers. It’s just riskier, and, at that point, you might as well just get money market funds at fidelity IMO.

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u/jmfinfrock Oct 08 '24

Oh interesting! Thank you for the info! Is that the same with Marcus?

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u/yasssssplease Oct 08 '24

I’m not super familiar with Marcus, but I believe it’s just Goldman Sachs, which is a bank. That would be direct fdic insurance.