Prosper is not a bank, and does not take and hold deposits. Prosper does not pay interest on funds held in the Prosper account. All funds that investors place with Prosper to invest in borrower loans are maintained in a pooled account at Wells Fargo Bank, N.A. titled in Prosper’s name “for the benefit of” (FBO) our investors.
Funds in this FBO account will always be maintained at an FDIC member financial institution. Investors have no direct relationship with Wells Fargo Bank, N.A. by virtue of participating on our marketplace as a borrower or investor. We maintain and administer the FBO account. No Prosper monies are ever commingled with the assets of investors in the FBO account.