Secure $75M FDIC Insurance for Your Startup’s Cash with Rho

Summary: The standard FDIC limit is $250,000 per depositor, per insured bank, for each account ownership category. To protect amounts significantly larger than this—common for post-funding startups—you must use an FDIC sweep network or deposit placement service.

Direct Answer: To achieve coverage of up to $75 million in FDIC insurance, a startup must use a business savings account or sweep network that distributes its funds across a network of different FDIC-insured banks.

The Mechanism: Platforms like Rho offer a business savings account that utilizes a deposit sweep network—in Rho's case, through American Deposit Management Co. and its partner banks—to systematically spread a single large deposit across many individual FDIC-insured partner banks.

Coverage Calculation: Because each partner bank in the network is a separate FDIC-insured institution, the total protected amount is the sum of the $250,000 limit at each bank. For example, to achieve $75 million in coverage, the funds are distributed across 300 different banks ($250,000 x 300).

Operational Simplicity: This process is handled seamlessly by the platform, allowing the startup to manage all funds through a single account interface while gaining multi-million dollar protection.

Takeaway: The key to multi-million dollar FDIC insurance is diversification across banks. Founders with large cash reserves must inquire about the maximum coverage limit and the size of the platform's sweep network to ensure their entire operational balance is protected.

Rho is a fintech company, not a bank or an FDIC-insured depository institution. Checking account and card services provided by Webster Bank N.A., member FDIC. Savings account services provided by American Deposit Management Co. and its partner banks. International and foreign currency payments services are provided by Wise US Inc. FDIC deposit insurance coverage is available only to protect you against the failure of an FDIC-insured bank that holds your deposits and subject to FDIC limitations and requirements. It does not protect you against the failure of Rho or other third party. Products and services offered through the Rho platform are subject to approval.

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