If you’ve been wondering, ‘how long can I leave money in my Venmo account?’ Continue reading to get all the information you need.
Venmo made inconveniences like splitting bills and paying rent much more accessible for people. However, it doesn’t operate as a bank account does. It’s more of a solving problem pal than a money keeper.
So if you’ve been wondering how long you can leave money in your Venmo account, read on to get all the information you need.
Yes, you can leave money in your Venmo account for as long as you need. However, many people don’t recommend that you do that, and for all the good reasons.
Now that we’ve given you a broad idea about the answer, it’s time to dive into more details.
- Why You Shouldn’t Leave Money in Your Venmo Account
- How Can I Know the Amount of Money in My Venmo Account?
- Frequently Asked Questions
- To Wrap Up
Why You Shouldn’t Leave Money in Your Venmo Account
Many people treat Venmo as a bank account, so they leave money there without using it. However, this may not be in your best interest, and here’s why.
1. Venmo Balances Have No Insurance
Insurance is crucial to protect your money from fraud and unexpected events. Unfortunately, while the Federal Deposit Insurance Corp (FDIC) has insurances for all bank accounts, Venmo balances don’t have the same luck.
The FDIC’s pass-through insurance only works for Venmo balances in two cases. The first one is when users have used the money to buy cryptocurrencies. And the second is when users have had money added to their accounts through remote check capture or Direct Deposit.
If you aren’t eligible for the pass-through insurance and Venmo goes down, they won’t be held responsible for any money in your account. In other words, they won’t have to return your money if something happens to it.
Meanwhile, if you have a bank account and the bank went through a downfall, the government can give you up to $250,000 no matter where the money in the account came from.
That said, Venmo has been around for years, and it isn’t likely that the online cash service will vanish out of nowhere. But when it comes to money, you can never be too safe. That’s why you should only leave tiny amounts of money in your account.
2. No Interest on Your Venmo Balance
When you put your money in a saving account or an investment, you gain interest over time. However, Venmo doesn’t work like that. As long as your money is in the online wallet, it’ll stay the same amount without increasing.
Now, if it’s a small amount of money, it’s okay to leave it. But if it isn’t, you should think about putting your money in a high-yield saving account instead of Venmo.
3. Venmo Is Susceptible to Hacks
Like any online service nowadays, Venmo is susceptible to hacks. Whether hackers try to steal personal information or money, it’s often a crisis when it happens. And although hacks aren’t that common and don’t always pose a danger on Venmo balances, they’re still a possibility. However, a bank account is rarely susceptible to preaches.
Accordingly, the right action with large amounts of money is to keep them safely in a bank. As for Venmo, try not to save more than $100 there.
4. Venmo Transfers Aren’t That Fast
When you transfer money through Venmo, the online service takes quite a time to review your transfers. While this is good in terms of financial security, it might be inconvenient if you want to pay a bill quickly. In general, Venmo transfers take from one to three business days. However, sometimes there are delays.
That said, Venmo is still vital in every day financial issues, and many people need it. But it’d be best if you only kept the money there for quick and small transfers and left the rest of your money safe in a bank account.
How Can I Know the Amount of Money in My Venmo Account?
If you rarely open Venmo and don’t know how much money you have in there, there’s a straightforward way you can find out. Here are the steps you should follow.
- Open the Venmo app
- Log in to your account
- Tap on the single person icon
- Click on the “You” button
This step will send you to review your transaction feed. So to see how much money you have in your account, look at the top of the page.
Frequently Asked Questions
How Can I Use the Money in My Venmo Account if I Don’t Have Access to a Balance?
If you haven’t verified your identity and don’t have access to a Venmo balance, you can’t use the money in your account to make any payment on Venmo. That said, you can still transfer the money in there to your bank account and receive more payments on Venmo.
Why Is There Less Money in My Venmo Account Than I Expected?
There are many possibilities:
- You might have used the money for payments if you have access to a balance
- Venmo might have used the money to cover a past negative balance
- You might have transferred money to a debit card
- If you use a Venmo card, they might have used your money to cover transactions
Why Don’t I Have Access to a Venmo Balance?
Not having access to a Venmo balance means you haven’t completed your verification process. And since Venmo has to gather all users’ information according to federal law, it might have denied you access till you do so.
To Wrap Up
Many people wonder about the possibility of leaving money in their Venmo accounts. While it’s possible for as long as you want- meaning you can keep your funds in the app as long as you use the app and your account is active, however, it isn’t recommended for many reasons.
Ideally, it’d be best if you didn’t leave large amounts of money in your Venmo account. Instead, consider putting them in a bank which will also earn interest, unlike Venmo balance.
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