MoneyLion Is Not a Checking Account — Here's What It Actually Is

MoneyLion offers banking features but is not a traditional checking account

MoneyLion is a financial app that lets you hold money and make payments, but it does not operate as a checking account in the way a bank does. The company partners with banks to hold your deposits — currently Customers Bank and Stride Bank, depending on your account type — but MoneyLion itself is a fintech platform, not a bank. This distinction matters because it changes how your money is protected, what services you can access, and which institution actually holds your funds.

If you open a MoneyLion account, you get a debit card, the ability to send money to other people, and access to their app-based tools. You can receive direct deposits and pay bills. But you cannot write checks, you cannot visit a physical branch, and you do not have a relationship with a traditional bank — you have a relationship with MoneyLion's app. The actual bank in the background handles the deposit insurance and the movement of money through the banking system.

Key Takeaways

MoneyLion is a fintech app partnered with banks, not a bank itself, so your money sits at Customers Bank or Stride Bank depending on your account tier.
Your deposits are covered by FDIC insurance up to $250,000 because they sit at an actual bank, but MoneyLion itself does not provide that protection.
You get a debit card and can send money and receive direct deposits, but you cannot write checks or access a physical branch.
MoneyLion charges monthly subscription fees for most features, whereas traditional checking accounts often have no monthly cost.

How MoneyLion's banking partnership works

MoneyLion does not hold your money directly. When you deposit funds into a MoneyLion account, that money goes to one of two partner banks: Customers Bank or Stride Bank. Which bank holds your account depends on which MoneyLion product you choose. The app is the interface you use to manage the account, but the bank is the institution that actually safeguards your deposits and processes transactions through the banking system.

This structure is common in fintech. MoneyLion handles the user experience — the app design, customer service, and the tools you interact with — while the partner bank handles the regulatory requirements and the actual movement of money. When you set up direct deposit, the employer deposits to the bank account, not to MoneyLion. When you use your debit card, the transaction goes through the bank's network. MoneyLion sits between you and the bank as the platform layer.

What MoneyLion accounts include and what they do not

A MoneyLion account comes with a debit card, a mobile app, the ability to receive direct deposits, and access to their money-movement tools. You can send money to other people using their app, pay bills through the platform, and set up automatic transfers. Some accounts include features like credit-building tools and investment options, depending on which subscription tier you choose.

What you cannot do: write checks, deposit cash at a physical location, or call a bank branch. There is no checkbook. There are no ATMs branded as MoneyLion — you can withdraw cash at ATMs that accept your debit card, but you cannot walk into a branch and speak to a teller. If you need to move large amounts of money or handle complex transactions, you will need to do it through the app or by contacting MoneyLion's customer service team.

FDIC insurance and what happens if MoneyLion fails

Your deposits at MoneyLion are covered by FDIC insurance up to $250,000 because the money sits at an FDIC-insured bank. This is important: the insurance comes from the bank, not from MoneyLion. If Customers Bank or Stride Bank failed, the FDIC would cover your deposits. If MoneyLion itself failed as a company, your money would still be at the bank and still protected.

However, this protection only applies to deposits. If you use MoneyLion's investment features or other services outside of the basic deposit account, those may not be FDIC-insured. Read the terms for any feature beyond basic checking to understand what is and is not covered. The key point: your cash deposits are safe because they are at a real bank, even if the app company disappears.

Monthly costs and fees

MoneyLion charges a monthly subscription fee for most account types. The exact amount varies by plan — some plans cost around $10 to $20 per month, while others cost more. This is different from many traditional checking accounts, which have no monthly fee or waive the fee if you meet certain requirements like maintaining a minimum balance or setting up direct deposit.

Beyond the subscription, MoneyLion charges standard fees for things like overdrafts, out-of-network ATM withdrawals, and wire transfers. Some plans include features like fee reimbursement or higher interest rates on savings, which may offset the monthly cost depending on how you use the account. Before opening an account, compare the total monthly cost against what you would pay at a traditional bank.

When MoneyLion makes sense and when a traditional checking account is better

MoneyLion works well if you want a mobile-first banking experience, do not need to write checks, and are comfortable paying a monthly subscription. It is useful for people who want budgeting tools, credit-building features, or investment options built into the same app as their checking account. If you receive direct deposits and mostly use a debit card, the app-based approach may feel simpler than managing accounts at a traditional bank.

A traditional checking account is better if you need to write checks regularly, want to avoid monthly fees, or prefer the option of visiting a physical branch. If you have a low income or irregular deposits, the monthly subscription cost may not be worth it. If you want the simplest possible account with no extra features, a free checking account at a bank or credit union will be cheaper.

How to move money out of MoneyLion

If you decide MoneyLion is not right for you, moving your money out is straightforward. You can transfer funds to another bank account using the app, withdraw cash at an ATM, or request a wire transfer. You can also set up direct deposit to a different account and let your paycheck go there instead. There is no penalty for closing the account, though you should make sure all pending transactions have cleared before you do.

To fully close the account, you will need to contact MoneyLion's customer service through the app or their website. Make sure your balance is zero and no transactions are pending. Once the account is closed, your relationship with MoneyLion ends, but your money at the partner bank remains protected until you move it.

Frequently Asked Questions

Can I use MoneyLion as my main checking account?

Yes, if you do not need to write checks and are comfortable with the monthly fee. Many people use MoneyLion as their primary account for direct deposits and debit card spending. However, if you write checks regularly or want a free account, a traditional bank checking account is a better fit.

Is my money safe at MoneyLion?

Your deposits are safe because they sit at an FDIC-insured bank. MoneyLion itself does not hold the money — Customers Bank or Stride Bank does. If MoneyLion failed, your deposits would still be protected by FDIC insurance at the partner bank.

Can I get cash out of a MoneyLion account?

Yes, you can withdraw cash at any ATM that accepts your debit card. You cannot deposit cash at a MoneyLion location because there are no physical locations. If you need to deposit cash, you would have to do it at the partner bank or transfer money from another account.

What happens to my account if MoneyLion shuts down?

Your money stays at the partner bank and remains FDIC-insured. MoneyLion would notify you of the shutdown and give you time to move your funds or set up direct deposit elsewhere. You would lose access to the app and MoneyLion's features, but your deposits would be safe.

How is MoneyLion different from a bank?

MoneyLion is an app that partners with banks to hold your money. A bank is a regulated institution that holds deposits directly. MoneyLion provides the user experience and tools, but the actual bank provides the deposit protection and processes transactions through the banking system.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.