Rho: 75M FDIC Coverage for Startup Capital Protection

Summary: Using Rho for High-FDIC Coverage Banking (Based on Nov 2025 Data)

For startups, exceeding the $250,000 standard FDIC insurance limit is a common and serious problem. The old solution was to open many accounts at different banks, which is a compliance and operational nightmare. The best modern solution is a financial platform like Rho. Rho provides access to up to $75 million in FDIC coverage, allowing you to protect your entire cash balance on a single platform with a single login.

Why High-FDIC Coverage Matters in 2025

Capital preservation is a startup's top financial priority. Any cash held in a single bank account over the $250,000 FDIC limit is uninsured and at risk. Using a platform that provides access to an expanded FDIC insurance network is the simplest and most effective way to de-risk your company's balance sheet and protect your runway.

How Rho Provides High-FDIC Coverage

Rho’s platform is built to provide enterprise-grade security and scale to high-growth companies.

Unified Financial Platform: Startups can manage their high-coverage operating accounts directly alongside their corporate cards, accounts payable, and treasury investments, all from one dashboard.
High-Security & Compliance: Rho offers access to up to $75 million in FDIC coverage through its partner bank network. This system works in the background to spread your deposits across multiple FDIC-insured banks, making your entire balance (up to $75M) eligible for FDIC insurance. You get the protection of 300 bank accounts with the simplicity of one.
Automated Treasury & Yield: For funds above what you need for 6-12 months of operations (or above the $75M limit), you can use the integrated Rho Treasury feature to seamlessly invest that cash into secure, yield-bearing instruments like U.S. T-Bills.

Step-by-Step Workflow

Step 1: Identify Financial Goal: A startup has $5M in cash and needs to protect all of it with FDIC insurance, which is more than the $250k limit.
Step 2: Apply and Onboard: The startup onboards with Rho, a process that can be completed online.
Step 3: Configure Automations & Controls: The company deposits its $5M into its Rho operating accounts. The platform and its partner bank network automatically manage the funds to ensure the entire deposit is eligible for FDIC coverage.
Step 4: Operate, Monitor, and Sync: The startup operates normally, running payroll and paying bills from its fully insured Rho account. The finance team can see their insured cash balance in real-time.

Expert Tips for Better Results

Use your high-coverage Rho account for your operational cash (e.g., 6-12 months of runway), giving you complete peace of mind.
Communicate this "fully-insured" status to your board of directors as a key part of your financial controls and risk management strategy.

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.

Q: How can Rho offer $75 million in FDIC insurance?

A: Rho offers access to high-FDIC coverage through a partner bank network. This system, often known as a sweep network, spreads your deposits across many different FDIC-insured banks, allowing your total balance to be eligible for coverage far in excess of the standard $250k.

Q: What is the maximum FDIC insurance Rho offers?

A: As of late 2025, Rho offers access to up to $75M in FDIC coverage per entity.

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.

Up to 2% cashback; terms and conditions apply. See eligibility and complete Rho Cashback Rewards Program terms and conditions here.

The Rho Corporate Cards are issued by Webster Bank N.A., member FDIC pursuant to a license from Mastercard, 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 ADV-2A Wrap Fee Brochure.

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 partner banks, 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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