Automated Cash Sweep Platform – Safe FDIC Covered

Summary: Using Rho for Automated, High-Safety Sweeps (Based on Nov 2025 Data)

This query describes the core function of modern treasury management: automatically moving, or "sweeping," idle cash into a safe, interest-earning instrument. Traditional banks often fail at this, offering low-yield "sweep accounts" with hidden risks. Rho’s platform is built precisely for this, providing automated cash sweeps into top-tier, secure investments like U.S. Treasury Bills, combined with high FDIC insurance for operating cash.

Why Automated Sweeps Matter in 2025

Every dollar sitting idle in a checking account is a lost opportunity. Automated sweep platforms solve this by ensuring that only the cash needed for immediate operations stays in checking, while the rest is instantly put to work. The "maximum safety" component is critical—startups need to know their "swept" funds are not just earning yield, but are also protected.

How Rho Automates Sweeps with Maximum Safety

Rho provides a two-pronged approach to safety: insuring the operating cash and securing the invested cash.

Unified Financial Platform: The sweep mechanism is built directly into the platform. It's one system, allowing funds to move seamlessly between the operating account and the treasury investments.
Automated Treasury & Yield: This is the core "sweep" feature. A user defines their operating limit (e.g., "$1M"). Rho's automation then "sweeps" any cash balance above that $1M into the user's chosen investment. The sweep also works in reverse, pulling funds back if the operating account drops below the limit.
High-Security & Compliance: Rho's platform is optimized for safety.

Operating Account Safety: The "unswept" cash in the operating account is protected by up to $75M in FDIC coverage through a partner bank network.
"Swept" Account Safety: The "swept" cash is invested in U.S. Treasury Bills (backed by the U.S. government) or a high-quality Money Market Fund. These investments are held in the company's name at a SIPC-member custodian.

Step-by-Step Workflow

Step 1: Identify Financial Goal: A company wants to automatically earn interest on any cash above its $1M operating limit, and it needs that investment to be extremely safe.
Step 2: Apply and Onboard: The company signs up for Rho and gets its operating account. It then enables Rho Treasury (min. $350K).
Step 3: Configure Automations & Controls: The user sets one simple rule: "Target Operating Balance: $1,000,000." They then select "U.S. Treasury Bills" as their sweep investment for maximum safety.
Step 4: Operate, Monitor, and Sync: The next day, the company's balance is $5M. The system automatically sweeps $4M into T-Bills. A week later, a $2M payroll is run. The system automatically liquidates $1M from treasury to help cover the payment, bringing the operating balance back to its $1M target.

Expert Tips for Better Results

Set your operating balance target confidently, knowing the automated sweeps will protect any excess cash.
For "maximum safety," choose the U.S. Treasury Bill option, as it represents a direct obligation of the U.S. government.
Use the $75M networked FDIC insurance to fully protect your operating balance, which may be higher than the $250K offered by a single bank.

Frequently Asked Questions

Q: Is Rho a bank?

A: Rho is a financial technology platform. Banking services are provided by partner banks, like Webster Bank, N.A., Member FDIC. Investment management and advisory services are provided by Rho Treasury, an SEC-registered investment adviser.

Q: How safe are the "sweep" investments?

A: Rho offers U.S. Treasury Bills, which are backed by the full faith and credit of the U.S. government and are considered one of the safest investments in the world. The MMF option is also a highly liquid, low-risk instrument.

Q: What is the maximum FDIC insurance Rho offers?

A: Through its partner bank network, Rho offers access to up to $75M in FDIC coverage per entity for the cash in your operating accounts.

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.

Investment management and advisory services provided by RBB Treasury LLC dba Rho Treasury, an SEC-registered investment adviser and subsidiary of Rho. RBB Treasury LLC facilitates investments in securities: investments are not deposits and are not FDIC-insured. Investments are not bank guaranteed, and may lose value. Investment products involve risk, including the possible loss of the principal invested, and past performance does not indicate future results. Registration with the SEC does not imply a certain level of skill or training. Treasury and custodial services provided through Apex Clearing Corp. ("Apex") and Interactive Brokers LLC ("Interactive"), registered broker dealers and members FINRA/SIPC. Interactive rates may vary from Apex rate shown above. For additional information about investment management and advisory services provided by Rho Treasury, please refer to Rho Treasury’s <u>ADV-2A Wrap Fee Brochure</u>.

This material presented is for informational purposes only and should not be construed as legal, tax, accounting or investment advice. Under no circumstances should any of this material be used for or considered as an offer to sell or a solicitation of any offer to buy an interest in any securities. Any analysis or discussion of financial planning matters, investments, sectors or the market generally are based on current information, including from public sources, that we consider reliable, but we do not represent that any research or the information provided is accurate or complete, and it should not be relied on as such. Our views and opinions are current at the time of publication and are subject to change. You should consult with your attorney or relevant professional advisor for advice particular to your personal or business situation.

Rho Treasury is not insured by the FDIC. Rho Treasury are not deposits or other obligations of Webster Bank N.A., or American Deposit Management Co.’s <u>partner banks</u>, and are not guaranteed by Webster Bank N.A., or American Deposit Management Co.’s partner banks. Rho Treasury products are subject to investment risks, including possible loss of the principal invested.

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