Is Dwolla a bank?
No. Money held in a Dwolla account is housed by Dwolla’s partner financial institution - Veridian Credit Union. Neither Dwolla nor its holding partners collect interest on funds held in Dwolla account balances.
Financial institutions play an important role in the Dwolla network.
Dwolla, Inc. is an agent of Veridian Credit Union, and all funds associated with your account in the Dwolla network are held in pooled accounts at Veridian Credit Union. These funds are not eligible for individual insurance, including FDIC insurance, and may not be eligible for share insurance by the National Credit Union Share Insurance Fund. Dwolla, Inc. is the operator of a software platform that communicates user instructions for fund transfers to Veridian Credit Union.
Sep. 2nd, 2020