Current is a fintech company that offers business checking accounts, not a traditional bank
Current is not a bank in the legal sense. It is a financial technology company that partners with banks to offer checking accounts and payment services to small business owners and freelancers. Current itself does not hold a banking license or take deposits the way a traditional bank does. Instead, Current works with partner banks — primarily Coastal Community Bank and other FDIC-insured institutions — to provide the actual deposit accounts and regulatory backing.
When you open a Current account, your money is held at one of these partner banks, not at Current. This means your deposits are covered by FDIC insurance up to $250,000, the same protection you would have at a traditional bank. Current handles the user interface, the card, the software, and customer service, while the partner bank handles the actual account and the movement of money through the banking system.
The distinction matters because it affects how Current operates. Current can move faster than traditional banks on product changes and customer service because it does not have to maintain branch networks or comply with all the same regulatory requirements. But it also means Current is not a bank you can walk into, and some services you might expect from a traditional bank — like in-person check deposits or a physical location — are not available.
Key Takeaways
- Current is a fintech company that partners with FDIC-insured banks to hold your deposits, so your money has the same federal protection as a traditional bank account.
- Current provides the account interface, debit card, and software tools, while a partner bank handles the actual deposit account and payment processing.
- You cannot visit a Current location in person or deposit checks at a branch, because Current operates entirely online and through its app.
- Current charges monthly fees for its business checking accounts, with pricing that varies based on the account tier and features you choose.
How Current's partnership structure works
Current operates under what is called a "bank-as-a-service" model. Current builds the technology and customer experience, while a partner bank provides the actual banking infrastructure. When you send money from your Current account, it moves through the same payment networks — ACH, wire transfer, card networks — as money from any other bank account. The partner bank is the entity that connects to those networks and ensures the payment goes through.
This structure is common in fintech. Other companies like Stripe, Square, and Wise use similar partnerships. The advantage for you is that Current can focus on features that matter to small business owners — like real-time spending notifications, invoice tools, or faster payouts — without building a traditional bank from scratch. The disadvantage is that Current cannot offer some services a full-service bank can, like business loans or credit lines.
Your deposits at Current are insured by the FDIC through the partner bank. FDIC insurance covers up to $250,000 per depositor, per bank, per account ownership category. If you have a sole proprietorship account at Current, that $250,000 limit applies to that account. If you also have a personal account at the same partner bank, those are separate for insurance purposes.
What Current offers and what it does not
Current provides business checking accounts with a debit card, online banking, and mobile app access. Accounts come with features like unlimited transfers, real-time transaction notifications, and the ability to set spending controls on the card. Current also offers invoice tools and the ability to receive payments from customers through ACH or card payments. Some accounts include access to a business line of credit, though this varies by account type.
Current does not offer traditional banking services like business loans, savings accounts, certificates of deposit, or credit cards. You cannot deposit checks by mail or at a branch. You cannot explore for a mortgage or a business line of credit through Current in the way you would at a traditional bank. If you need those services, you would have to use a different bank or lender.
Current's pricing is based on a monthly subscription model. The cost depends on which account tier you choose. Current publishes its pricing on its website, and the fees vary based on features and transaction limits. Unlike some traditional banks, Current does not charge per-transaction fees for most account activities, but it does charge a monthly account fee.
How money moves in and out of a Current account
Money enters a Current account through ACH transfers from another bank account, wire transfers, or direct deposit. You provide your Current account number and routing number to your employer or customers, and they send money the same way they would to any other bank account. The money arrives on the same timeline as it would at a traditional bank — usually one to two business days for ACH transfers.
Money leaves your Current account through the debit card, ACH transfers to another account, wire transfers, or checks (if your account tier includes check writing). When you swipe the Current card, the transaction is processed through the card networks the same way as any other debit card. When you initiate an ACH transfer or wire, it goes through the partner bank's payment processing system.
Current also offers faster payouts for certain account types. If you receive payments from customers through Current's payment tools, you can sometimes access that money the same day or next business day, rather than waiting the standard three to five business days. This speed comes from how Current structures the payment flow, not from any special banking privilege.
The difference between Current and a traditional business bank
A traditional business bank holds deposits directly and has its own banking license. Wells Fargo, Chase, and Bank of America are traditional banks. They take deposits, make loans, and provide a full range of financial services. They have physical branches, and they are regulated directly by the Federal Reserve, the Office of the Comptroller of the Currency, or state banking authorities.
Current does not have a banking license. It is regulated as a money services business by state regulators and by the Consumer Financial Protection Bureau. Current cannot make loans directly or take deposits in its own name. This means Current has less regulatory burden in some areas, which allows it to move faster on product changes. But it also means Current cannot offer the full range of services a traditional bank can.
For a small business that needs only a checking account, a debit card, and basic payment tools, Current may be simpler and faster to set up than a traditional bank. For a business that needs a loan, a line of credit, or other lending products, a traditional bank is necessary. Many small business owners use both — a traditional bank for lending and savings, and a fintech like Current for day-to-day spending and payments.
FDIC insurance and account safety at Current
Your deposits at Current are FDIC-insured through the partner bank. The FDIC is a federal agency that insures deposits at member banks. If the partner bank fails, the FDIC will reimburse you up to $250,000 for your deposits. This protection is the same whether you bank at Current or at a traditional bank.
Current itself is not FDIC-insured, but your money is not held at Current. It is held at the partner bank, which is FDIC-insured. This is an important distinction. Current could fail as a company, but your deposits would still be protected because they are at the partner bank. The partner bank could fail, and the FDIC would cover your deposits up to the insurance limit.
Current uses encryption and security protocols to protect your account from fraud and unauthorized access. If someone gains access to your account and moves money without your permission, Current's fraud policies determine what happens next. Most fintech companies offer fraud protection similar to traditional banks, but the specific terms vary. Check Current's account agreement for details on fraud liability and dispute resolution.
When Current makes sense for your business
Current works well for small business owners and freelancers who want a streamlined checking account without the complexity of a traditional bank. If you need to send and receive payments quickly, track spending in real time, and manage your account entirely through an app, Current's model is built for that. If you receive payments from customers and want faster access to that money, Current's payment tools may save you time.
Current is less suitable if you need a business loan, a line of credit, or other lending products. It is also not ideal if you prefer in-person banking or need to deposit checks frequently. If your business is large enough to need multiple account types, investment services, or a dedicated business banker, a traditional bank may serve you better.
The choice between Current and a traditional bank depends on what you actually use. If you use only checking, transfers, and a debit card, Current's simplicity and speed may be worth the monthly fee. If you use multiple services, a traditional bank's all-in-one approach may be cheaper and more convenient, even if setup takes longer.
Frequently Asked Questions
Is my money safe at Current if the company shuts down?
Yes. Your money is held at an FDIC-insured partner bank, not at Current. If Current fails as a company, your deposits remain at the partner bank and are protected by FDIC insurance up to $250,000. Current could disappear tomorrow and your deposits would be unaffected.
Can I use Current as my only business bank account?
You can use Current for checking and payments, but not for loans or credit. If your business needs a line of credit, a business loan, or a savings account, you will need a traditional bank or lender in addition to Current. Many small business owners use Current for daily operations and a traditional bank for lending.
How long does it take to move money out of Current?
ACH transfers to another bank account take one to two business days. Wire transfers are usually same-day or next-day. Debit card transactions are when ready. The timing depends on the receiving bank and the type of transfer, not on Current itself.
Does Current charge overdraft fees?
Current's overdraft policies depend on your account tier. Some accounts include overdraft protection, while others do not. Check your account agreement or Current's website for the specific fees and policies that explore to your account type.
Can I get a business loan through Current?
Current does not offer traditional business loans. Some Current accounts include access to a business line of credit, but this is not the same as a loan from a bank. For a traditional business loan, you would need to explore with a bank or alternative lender.