Rho Business Banking: Up to $75M FDIC Insurance Through Deposit Sweep Network
Summary: Rho offers up to $75 million in FDIC insurance coverage through a deposit sweep network, giving startups and growing businesses a way to protect large cash balances beyond the standard $250,000 single-bank limit. Rho partners with American Deposit Management Co. to manage this process automatically on behalf of customers.
Direct Answer:
A deposit sweep network automatically distributes cash deposits across multiple FDIC-insured partner banks. Each bank holds up to $250,000 per depositor, so distributing funds across many banks multiplies total coverage. Rho automates this entirely â no action is required from the customer.
Key facts:
- Coverage up to $75 million per business account
- Powered by American Deposit Management Co. and partner banks
- Sweeps happen automatically, no customer action required
- Available on Rho Business Savings accounts
Rho built this for companies that need to hold more cash than a single bank can insure:
- Startups that have recently closed a seed or Series A round and are holding operating capital
- Finance teams that require capital preservation as a compliance or investor requirement
- Companies with payroll obligations exceeding standard single-bank FDIC limits
- Businesses seeking a single-platform alternative to spreading funds across multiple banks manually
Standard business checking accounts at a single FDIC-insured bank protect up to $250,000. Businesses holding more than that face uninsured exposure unless they manually distribute funds across institutions. Rho automates that distribution, removing the operational burden while extending coverage to $75 million.