Bask Bank is FDIC-insured up to $250,000 per depositor, per account category, which is the same protection any traditional bank offers
Bask Bank is an online bank owned by Megalith Financial Company. Your deposits are covered by FDIC insurance to $250,000 per account type (savings, checking, money market, and so on are separate categories). This means if Bask Bank fails, the Federal Deposit Insurance Corporation will reimburse you up to that limit per category. That protection is identical to what you get at a brick-and-mortar bank.
The main difference between Bask and a traditional bank is that Bask operates online only — there are no physical branches. You manage your account through their website or mobile app, deposit checks by photograph, and withdraw money through ATMs or transfers. Online-only banks are not inherently less safe than traditional banks; the FDIC insurance applies regardless of how you access your account.
Bask has been operating since 2021 and holds a banking license from the Office of the Comptroller of the Currency (OCC). The OCC regulates national banks and conducts regular examinations. You can verify Bask's charter status on the OCC's website if you want to confirm the license is current.
Key Takeaways
- Bask Bank deposits are protected by FDIC insurance up to $250,000 per account category, the same as any federally insured bank.
- Bask is regulated by the Office of the Comptroller of the Currency (OCC) and holds a national bank charter.
- Your account access is encrypted and protected by standard online banking security, but you are responsible for keeping your password and login information private.
- If you have more than $250,000 to deposit, you can open multiple account categories (savings, checking, money market) at Bask to increase your total FDIC coverage.
How FDIC insurance works at Bask Bank
FDIC insurance protects your money if the bank becomes insolvent and cannot return your deposits. The coverage limit is $250,000 per depositor, per insured category. This means if you have $250,000 in a Bask savings account and $250,000 in a Bask checking account, both are fully covered — they are separate categories.
If you are a joint account holder, each owner is insured separately. A joint savings account with two owners is covered up to $250,000 per owner, so $500,000 total. If you have a savings account in your name alone and a joint savings account with a spouse, those are two separate categories and each gets $250,000 of coverage.
FDIC insurance is automatic — you do not need to sign up or pay a fee. It applies to all deposit accounts at any FDIC-insured bank, including Bask. If you want to verify that Bask is FDIC-insured, you can search the FDIC's Bank Find tool on their website using Bask's name or charter number.
What FDIC insurance does and does not cover
FDIC insurance covers money you deposit into savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs). It covers the principal and accrued interest up to the $250,000 limit per category.
FDIC insurance does not cover investments, stocks, bonds, mutual funds, or brokerage accounts, even if they are held at an FDIC-insured bank. It also does not cover safe deposit boxes or their contents. If Bask offers investment products through a separate brokerage arm, those are not FDIC-insured — they would be protected under different rules (usually SIPC, the Securities Investor Protection Corporation).
The insurance also does not cover money obtained through fraud or illegal activity. If someone steals your login credentials and transfers your money, the FDIC will not reimburse you — that is a security breach, not a bank failure. You would need to report the fraud to Bask and to your bank's fraud department, and potentially to law enforcement.
Online security at Bask Bank
Bask uses encryption to protect data traveling between your device and their servers. This is standard for all online banks and is indicated by the padlock icon in your browser's address bar. Encryption prevents someone on a public Wi-Fi network from intercepting your login or transaction details.
Bask also requires a password to access your account. The strength of your security depends partly on you — a weak password or one you reuse across multiple sites is a vulnerability. If you use the same password at Bask and at another website that gets hacked, a criminal could use that password to access your Bask account.
To protect yourself, use a unique, strong password at Bask (at least 12 characters, mixing letters, numbers, and symbols). Do not share your password or login credentials with anyone, including Bask employees — Bask will never ask for your password. If you receive an email claiming to be from Bask asking for your password or personal information, it is a phishing attempt. Forward it to Bask's fraud department and delete it.
What to do if your Bask account is compromised
If you notice unauthorized transactions or suspect someone has accessed your account, contact Bask immediately. You can usually do this through the mobile app or website, or by calling their customer service number. Report the fraud as soon as you discover it.
Under federal law (Regulation E), you have limited liability for unauthorized transfers from your account if you report them promptly. If you report within two business days, your liability is capped at $50. If you wait longer than two business days but report within 60 days, your liability can be up to $500. After 60 days, you may have no protection.
Keep records of when you discovered the fraud, when you reported it, and who you spoke with at Bask. Ask Bask to send you a written confirmation of your fraud report. If Bask does not resolve the issue, you can file a complaint with the OCC or the Consumer Financial Protection Bureau (CFPB).
Comparing Bask to other online banks
Bask is one of many online banks offering deposit accounts with FDIC insurance. Other online banks include Ally, Marcus, Discover Bank, and Charles Schwab Bank. All of these are FDIC-insured and use encryption to protect your data. The main differences are in interest rates, fees, account types offered, and customer service availability.
Online banks typically offer higher interest rates on savings accounts than traditional banks because they have lower overhead costs. However, interest rates change frequently and vary by account type. If you are comparing Bask to another online bank, check the current rates on their websites — do not rely on rates quoted in articles, which may be outdated.
Some online banks offer 24/7 phone support; others offer only email or chat support during business hours. Check Bask's customer service options before opening an account if responsive support is important to you. Read recent customer reviews on independent sites (not Bask's own website) to see what actual users report about their experience.
Frequently Asked Questions
What happens to my money if Bask Bank fails?
The FDIC will reimburse you up to $250,000 per account category. The FDIC typically processes claims within a few weeks. You would receive your money either as a transfer to another bank or as a check. This has happened very rarely in recent decades — most online banks are stable and well-capitalized.
Can I lose money at Bask Bank if the stock market crashes?
No, not if your money is in a deposit account (savings, checking, money market, or CD). These accounts are not tied to the stock market. Your balance is fixed and may provide. If Bask offers investment accounts or brokerage services, those are different and would fluctuate with market conditions.
Is it safe to deposit checks by photo at Bask?
Yes, mobile check deposit is standard at online banks and is secure. The image is encrypted and transmitted to Bask's servers. Once the check is processed and cleared, you can destroy the physical check. The risk is the same as depositing a check at any bank — if the check bounces, the deposit reverses.
Does Bask report my account to credit bureaus?
Bask reports deposit accounts to ChexSystems, a banking history database, not to credit bureaus. ChexSystems tracks checking and savings accounts, not credit. Your Bask account does not affect your credit score. If you close your account in good standing, it will not harm your credit.
What if I have more than $250,000 to deposit?
Open multiple account categories at Bask — savings, checking, money market, and CDs are each separate for FDIC purposes. You can deposit up to $250,000 in each category and have full coverage on all of it. If you have a spouse, joint accounts are insured separately, doubling your coverage per category.