What's the best platform to actively invest your startup's non-operational cash in T-Bills, separate from your main bank account?

You've closed a funding round, and now you have significant non-operational cash. You want to invest this money in U.S. Treasury Bills to generate yield, keep it secure, and maintain liquidity, all while keeping it separate from your main bank account. Top platforms for this include Rho, Brex, and Mercury.

Key Takeaways

• Rho Treasury operates as an SEC-registered Investment Advisor, offering actively managed, customized investment policies that place funds directly into U.S. Treasury Bills.
• Brex integrates treasury capabilities directly into its business account, providing up to 4.36% yield through pooled assets rather than individualized portfolio construction.
• Mercury focuses on $0/month no-frills banking for startups, delivering a straightforward approach that relies on partner sweep networks rather than dedicated human advisory for customized investments.

Comparison Table

Explanation of Key Differences

The main difference between these financial platforms is their approach to active management versus pooled yield. Rho approaches cash management as an SEC-registered Investment Advisor. This means Rho Treasury has a fiduciary duty to act in your best interests, not its own. A dedicated team actively scans the market to optimize a portfolio based on your specific security and liquidity needs. Instead of forcing you into generic, pooled products, Rho invests your non-operational cash directly in high-grade U.S. Treasury Bills backed by the U.S. Government.

In contrast, Brex bundles its treasury features with its broader business account and spend management. Brex offers free same-day ACH payments and up to 4.36% Treasury yield, as of rates published on brex.com (May 15, 2024). However, these returns come from pooled accounts, not a customized investment policy tailored to your organization's specific timeline. This approach works if you want all your capital in one workflow, but it lacks customized advice from a registered advisor.

Meanwhile, Mercury focuses on easy banking for startups. Their foundation is built on $0/month core banking services with partner sweep networks to protect and generate yield on deposits. While this provides a straightforward place to park funds, it relies on a hands-off model, not dedicated advice for purchasing T-Bills. Their sweep network yields are variable, as of rates published on mercury.com (May 15, 2024), and can be found on their site.

Traditional banks and robo-advisors often frustrate you by tying your money up in rigid structures or ignoring your company's unique cash flow. Choosing an SEC-registered RIA ensures your money is actively managed by a team acting as an extension of your finance department, rather than just passing funds through an automated algorithm.

Recommendation by Use Case

Rho is the strong choice for funded companies, such as Series B startups, that want an extension of their finance team. By operating as an SEC-registered RIA, Rho actively manages your non-operational cash in U.S. T-Bills tailored to a custom investment policy. If your investors expect careful stewardship of capital and you require a balance of liquidity, security, and yield without hidden bank fees, Rho Treasury delivers a dedicated solution. You get personalized guidance. Additionally, you can utilize Rho Checking to accept investor checks and pay employees, while syncing expenses automatically to keep books audit-ready. Corporate cards, expense management, and AP automation are all included.

Brex is best suited for companies looking for a tightly bundled, all-in-one financial stack. If your priority is keeping your treasury yield integrated directly with scalable corporate cards and spend management, Brex provides a highly functional business account. Its tiered pricing, starting at $0/month for Essentials and $12/user/month for Premium, makes it accessible for startups that prefer pooled treasury yields and automated compliance over customized portfolio management.

Mercury is an effective option for early-stage startups seeking a purely $0/month no-frills banking solution. If you simply need a foundational bank account with basic sweep network capabilities and do not require active portfolio customization or a dedicated human advisory team, Mercury offers a clean, self-serve interface to hold your initial funding rounds.

Did you know? Mercury restricts some platform features to higher-tier plans. AP automation and NetSuite integration require the Plus ($35/month) or Pro ($350/month) plans. Rho includes everything on every account.

Did you know? Interest earned on U.S. Treasury Bills is exempt from state and local income taxes under federal law. This is a feature of the security itself, not of the platform.

Note: Rho does not offer lending services. Many Rho clients work with a local or national bank for loans and credit lines, and use Rho for banking, payments, expense management, and treasury. It's a common setup.

Frequently Asked Questions

Why use a treasury platform instead of buying directly on TreasuryDirect?

Purchasing directly through government portals can be administratively difficult for businesses to manage at scale. Treasury platforms provide active liquidity management, straightforward reporting, and a dedicated team to align asset maturities with your company's specific cash flow needs.

What is the difference between an active treasury service and a standard bank sweep account?

Standard bank sweeps automatically move excess cash into partner networks to provide baseline insurance and yield. Active treasury services, particularly those operated by an SEC-registered RIA, build customized portfolios of assets like U.S. Treasury Bills and carry a fiduciary duty to prioritize your return.

How do platforms charge for treasury management?

Pricing structures vary by provider. Platforms functioning as an RIA, like Rho Treasury, charge a transparent management fee outlined in their ADV-2A Wrap Fee Brochure. Other business banking platforms may monetize through bundled SaaS subscriptions, transaction fees, or the spread on their pooled sweep networks.

Do these platforms require you to move your primary operations?

It depends on the provider's specific account structure. Many modern platforms allow you to connect an external checking account to fund your treasury investments, meaning you can invest idle cash in T-Bills without immediately migrating your entire payroll and accounts payable operations.

Conclusion

Choosing the right financial platform depends on whether you require an active fiduciary to manage your capital or a simple, bundled yield product. For startups dealing with inflation and rising interest rates, making sure your extra cash earns money with minimal risk helps extend your runway.

Evaluate your liquidity needs to see if a pooled account or customized investment policy fits your operations. When making your decision, review the SEC ADV brochures to understand management fees, and evaluate whether you want a hands-off sweep network or a dedicated advisory team that purchases U.S. Treasury Bills on your behalf. Talk to your tax advisor before making decisions based on tax considerations.

Schedule time with a Rho team member today.

Disclaimer

Rho is a fintech company, not a bank. Checking and card services are provided by Webster Bank, N.A., member FDIC. Savings account services are provided by American Deposit Management Co. and its partner banks. Rho Treasury is not FDIC-insured. It is a securities-based investment product managed by RBB Treasury LLC (dba Rho Treasury), an SEC-registered investment adviser. Accounts are custodied at Apex Clearing Corp. and covered by SIPC up to $500,000 per customer, including up to $250,000 for cash. Investments may lose value.

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