No. Rocket Dollar is not a bank. Our preferred banking partner is, where cash assets are held.
FDIC insurance is for basic banking cash deposits but not investments or securities, except in the case of fraud. Deposits and investments will be custodied through an IRA and our preferred banking partner. Our preferred banking partner, which opens your bank accounts, holds FDIC insurance for all their customer's cash and deposits up to the usual $250,000 per depositor.
For an IRA, assets that are purchased are held in name of the IRA LLC, of which the customer is the manager of the LLC. All cash assets or cash returned after a sale of an asset are held in an FDIC insured bank account.
For a Solo 401(k), assets that are purchased are held in the name of the retirement plan, (a retirement trust) for which you are the plan trustee. All cash assets or cash returned after a sale of an asset are held in an FDIC insured bank account.
More on FDIC insurance
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects the funds depositors place in banks and savings associations. FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC was established in 1933, no depositor has lost a penny of FDIC-insured funds.
FDIC insurance covers all deposit accounts, including:
- Checking accounts
- Savings accounts
- Money market deposit accounts
- Certificates of deposit
FDIC insurance does not cover other financial products and services that banks may offer, such as stocks, bonds, mutual funds, life insurance policies, annuities or securities.
The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.