**A money market deposit account at an FDIC-insured online bank is as protected against bank failure as one at a bank with branches.** Banking online does not reduce that insurance protection. [FDIC guidance](https://www.fdic.gov/consumer-resource-center/2024-06/banking-third-party-apps)

The key distinction is the product:

- **Money market deposit account:** FDIC-insured, subject to coverage limits.
- **Money market mutual fund:** An investment that is not FDIC-insured and can lose value—even if purchased through a bank. [FDIC coverage rules](https://www.fdic.gov/resources/deposit-insurance/faq)

The standard limit is **$250,000 per depositor, per insured bank, per ownership category**, including accrued interest. Your individually owned checking, savings, and money market accounts at the same bank generally count together; opening another account does not create another $250,000 of coverage. A roughly $10,000 deposit would comfortably fit within the limit unless you already have substantial deposits there. [FDIC insurance details](https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits)

The main downsides to check in your offer are:

- **Rate conditions:** How long does the 1.00% promotion last? Is that the annual percentage yield (APY)? Does it apply to the entire balance or only the portion above $10,000? Savings rates can change. [Capital One savings information](https://www.capitalone.com/bank/savings-accounts/)
- **Fees and minimums:** A monthly fee or a lower rate when your balance drops could erase much of the interest. [CFPB guidance](https://www.consumerfinance.gov/ask-cfpb/why-am-i-being-charged-a-monthly-maintenance-fee-for-my-bank-or-credit-union-account-en-2151/)
- **Access:** Check transfer times, withdrawal limits, and whether the account offers the ATM, check-writing, or branch access you need.
- **Purchasing power and taxes:** At 1.00% APY, $10,000 earns $100 over a full year if the rate stays unchanged and the whole balance qualifies. Interest is generally taxable, and inflation could exceed your return. [IRS interest guidance](https://www.irs.gov/taxtopics/tc403)

For preserving cash, an insured deposit account within the coverage limit is very safe. Whether this particular offer is worthwhile depends mostly on its fees, rate conditions, and convenience.