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Comment by tommynicholas | Hacker News Reader

The accounts are FDIC insured and held in an accredited bank according to the website. $250k of insurance per account.

Ok but who owns the account and how do you know they're trustworthy? I could open a bank account anywhere and ask you to start depositing your income there. You have to trust that I'll give it back to you though--FDIC won't apply.

Each account is a separate, FDIC insured account held with Lincoln Savings Bank. Your account is your account, there is no money pooling done. Painless 1099 is a front end to that account to let you do various things automatically and easily.

Does that make sense? I suppose technically just like your accountant could steal your money because they have access to your accounts there's some risk but not really.

Perfect, thanks for clarifying! Yeah it wasn't really obvious if this is an account Painless 1099 owns or the user owns. Thanks!

Hi gents - a little late to the party here, but yeah, tommynicholas is absolutely right here. We help you open an account with our bank (Lincoln Savings Bank) and your money goes into an account in your name at LSB. If anything were to happen (heaven forbid) this cash is secure and guaranteed.

If anything, you could make a solid case about a bank going out of business before anything. But all jokes aside, before building anything, security of funds is something we made sure our users feel really good about and we found a great partner to make sure your accounts and deposits are insured!

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