App record
PayPal: who holds your money
- Institution type
- App
- Insurance route
- Pass-through FDIC insurance
- Recorded partner banks
- 1
- Disclosure read
- September 5, 2026
Insurance route
Pass-through FDIC insurancePayPal's disclosure, read on September 5, 2026, describes FDIC pass-through coverage, deposit insurance through partner banks. Coverage depends on customer identification and recordkeeping. It protects eligible deposits when a partner bank closes, not the app company itself. An app closure does not trigger that protection. The visible disclosure and notes provide the programme’s specific conditions.
Summary
PayPal is not a bank. PayPal says customer money is held at Synchrony Bank, with insurance reaching customers as pass-through FDIC insurance at the partner bank, subject to the app's recordkeeping. We read this information in the app's own public disclosure on September 5, 2026, and this page quotes that disclosure below. You can check each partner bank's own page on this site.
Current commentary
PayPal is not a bank. Customer money sits at Synchrony Bank, which has letter A compared with banks of similar size on this site. As of September 5, 2026, FDIC insurance, federal coverage for bank deposits, passes through Synchrony Bank to each customer. Coverage depends on PayPal’s records identifying each customer and is limited to $250,000 per depositor, per insured bank, for each account ownership category.
Partner banks
1 bankSynchrony Bank
- FDIC certificate
- 27314
- Role
- program bank
- Uninsured deposit share
- 11.9%
- Lefomi grade
- Grade AScore 100.0 out of 100
- Quarter ending
- June 30, 2026
- Other peers
- 31
- Peer group
- Banks, $100B or more
- Deposit insurance
- FDIC insured
Grade alerts for Synchrony Bank
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