Your deposited funds held in cash are FDIC-insured up to $250,000. Funds you transfer to the Peer Street Funding, LLC Investors Trust Account at Wells Fargo Bank are insured by the FDIC up to the maximum amount per individual, cumulative of all your funds at Wells Fargo. However, the FDIC only insures the funds while such funds are in your cash account.
As soon as you commit funds to an investment and that applicable investment closes, your funds are transferred out of your account, and the FDIC insurance will no longer be in effect for those funds. Investments in loans are not insured by the FDIC, as they are not considered bank deposits, nor are they guaranteed by PeerStreet and are subject to risks, including the entire loss of principal