Bask Bank is insured by the FDIC, which means your deposits are protected up to $250,000 per account type

Bask Bank is an online bank owned by Megalith Financial Company. Your money there is covered by FDIC insurance — a federal may provide that protects your deposits if the bank fails. This is the same protection you get at any traditional bank with an FDIC charter.

The FDIC (Federal Deposit Insurance Corporation) is a government agency that insures deposits at member banks. If Bask Bank were to close, the FDIC would pay you back up to $250,000 per account category — checking, savings, money market, and certificates of deposit are each counted separately. This protection is automatic; you do not need to do anything to set up it.

Being online-only does not change this protection. Bask Bank holds the same FDIC insurance as a bank with physical branches. The main difference is that you manage your account through their website and mobile app instead of visiting a location in person.

Key Takeaways

  • Bask Bank deposits are protected by FDIC insurance up to $250,000 per account type, the same as any other FDIC-member bank.
  • The FDIC may provide is automatic and does not depend on the bank's size, how long it has been operating, or whether it is online-only.
  • Your money is insured even if Bask Bank fails — you will not lose deposits within the $250,000 limit.
  • Online banks like Bask often have lower fees and higher savings rates than traditional banks because they have fewer physical locations to maintain.

How FDIC insurance works at Bask Bank

FDIC insurance covers deposits you hold in your own name at an FDIC-member bank. At Bask, this means checking accounts, savings accounts, money market accounts, and CDs are each insured separately up to $250,000. If you have $200,000 in a Bask savings account and $100,000 in a Bask checking account, both are fully protected because they are different account types.

The coverage applies to the account balance as it stands on the day the bank is closed by regulators. Interest that has been earned but not yet credited to your account is also covered. You do not need to file a claim or take any action — the FDIC handles the process automatically.

If you have multiple accounts at Bask in different names — for example, an account in your name alone and a joint account with your spouse — each is insured separately. The same is true for retirement accounts (IRAs) and accounts held in trust. The FDIC website has a calculator that shows exactly how much of your money is covered based on how the accounts are titled.

What FDIC insurance does and does not cover

FDIC insurance protects the money you deposit — your principal and earned interest. It does not protect you from fraud, mistakes, or unauthorized transactions. If someone gains access to your account and transfers money out, that is a security issue, not an insurance issue, and you would report it to Bask directly.

The insurance also does not cover investment products. If Bask offered stocks, bonds, or mutual funds (which some online banks do), those would not be FDIC-insured. At Bask, the main products are deposit accounts — checking, savings, money market, and CDs — all of which are covered.

FDIC insurance also does not protect you if you send money to a scammer or make a mistake when transferring funds to another account. Once money leaves your Bask account, it is no longer under FDIC protection. This is why it is important to verify recipient details before sending transfers.

Security practices at Bask Bank

Bask uses encryption to protect information you send over the internet, the same technology used by other online banks and financial websites. When you log in or enter sensitive information, that data is scrambled so it cannot be read if intercepted.

Like other banks, Bask requires a password to access your account and offers optional two-factor authentication — a second verification step (usually a code sent to your phone) that makes it harder for someone else to log in even if they have your password. You can turn this on in your account settings.

Bask also monitors accounts for suspicious activity and can freeze or block transactions if they detect something unusual. If your account is compromised, you should contact Bask when ready through their website or phone number. The bank's fraud liability policies are similar to those at traditional banks — you are generally not responsible for unauthorized transactions if you report them promptly.

Comparing Bask to other online banks

Bask is one of many online-only banks. Others include Ally, Marcus, Discover Bank, and Charles Schwab Bank. All of these are FDIC-insured. The main differences between them are interest rates on savings accounts and CDs, monthly fees (many have none), and the features their apps offer.

Online banks typically offer higher interest rates on savings accounts than traditional banks because they have lower overhead costs — no branches to maintain, fewer employees in physical locations. This means your money can earn more while still being fully insured.

The trade-off is that you cannot walk into a location to deposit cash or speak to someone in person. Most online banks let you deposit checks by photographing them with your phone, and some have partnerships with ATM networks so you can withdraw cash without fees. Bask's specific features and rates change over time, so check their website for current offerings.

What to do if you are concerned about your account

If you want to verify that Bask Bank is FDIC-insured, you can search the FDIC's Bank Find tool on their website (fdic.gov). Search for "Bask Bank" or the parent company name, and you will see the bank's charter number and insurance coverage details.

If you have questions about how much of your specific deposits are covered, use the FDIC's insurance calculator on their website. You enter your account balances and how the accounts are titled, and it shows you exactly what is insured.

If you experience a problem with your account — unauthorized transactions, a technical issue, or a billing error — contact Bask directly through their website or the phone number on your statements. Most issues are resolved within a few business days. If you are not satisfied with Bask's response, you can file a complaint with the FDIC or your state banking regulator.

Frequently Asked Questions

What happens to my money if Bask Bank closes?

The FDIC takes over and pays you back up to $250,000 per account type. This usually happens within a few days. You would receive a check or have the funds transferred to another account. The FDIC has never failed to pay insured deposits in full.

Is my money safer at Bask than at a traditional bank?

No — the FDIC insurance is identical. The difference is that online banks have fewer physical locations, so there is no branch to visit. The deposit protection and security standards are the same whether the bank is online-only or has branches.

Can I lose money if Bask gets hacked?

If someone gains unauthorized access to your account, that is a security issue, not an insurance issue. You should report it to Bask when ready. Most banks, including Bask, do not hold you responsible for unauthorized transactions if you report them promptly. FDIC insurance does not cover fraud — it covers bank failure.

What if I have more than $250,000 at Bask?

Only $250,000 per account type is insured. If you have $300,000 in a Bask savings account, $250,000 is covered and $50,000 is not. You could open accounts at other FDIC-insured banks to cover the extra amount, since each bank's coverage is separate.

Do I need to do anything to make sure my deposits are insured?

No. FDIC insurance is automatic at any FDIC-member bank. You do not need to sign up, pay a fee, or take any action. As long as your account is at an FDIC-insured bank and your balance is under the limit, you are covered.