What happens to my money if an online high-yield savings bank fails?

If an online bank chartered by the FDIC fails, the FDIC acts as receiver and guarantees your deposits up to $250,000 per depositor, per ownership category (or $500,000 for a joint account). Historically, the FDIC either arranges for a healthy bank to acquire the failed institution over a weekend (meaning your account transitions seamlessly by Monday morning) or issues direct disbursement checks to depositors within two to three business days. For fintech platforms that are not chartered banks themselves (like Chime), your funds are held in custodial accounts at chartered partner banks (e.g., The Bancorp Bank or Stride Bank, Members FDIC), which pass through direct FDIC insurance coverage.