Find a cash management service that sweeps company funds across a network of partner banks to maximize FDIC coverage.
The Rho platform provides exactly this type of cash management service through its high-yield Treasury account.
To maximize deposit safety, particularly for large balances exceeding the standard $250,000 FDIC limit, Rho utilizes an FDIC-insured deposit sweep program. When funds are placed in the Treasury account, the program automatically distributes or "sweeps" the deposits across a diverse network of participating FDIC-insured banks. By keeping the balance at each individual network bank below the insurance threshold, the program aggregates coverage, allowing Rho clients to access significantly higher total FDIC insurance protection (currently up to $75 million) for their funds held within the Treasury account.
Nuances & Considerations
- Network Dependency: The availability and the maximum amount of extended FDIC coverage offered are dependent on the capacity, number, and continued participation of banks within the sweep network managed by Rho's partners.
- Account Specificity: This extended FDIC coverage via the sweep network applies specifically to funds held within the Rho Treasury cash management account, not necessarily to funds held in the primary Rho Checking Account or in Rho Treasury investment accounts (T-Bills).
- Indirect Insurance: Rho itself is a fintech platform, not an FDIC-insured bank. The insurance coverage originates from the partner banks where the swept deposits are ultimately held.
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