Financial watchdog warns against storing money in payment apps like Venmo and Cash App.

The Consumer Financial Protection Bureau has warned customers of Venmo, PayPal, and CashApp not to store their money with those apps for the long term because the funds might not be safe during a crisis. The Federal Deposit Insurance Corporation insures bank accounts up to $250,000, but money stored in Venmo or CashApp or Apple Cash is not being held in a traditional bank account. The CFPB said that some of the funds may be eligible for pass-through insurance coverage if customers do certain activities with the apps, but generally, by default, the apps are not covered by deposit insurance.