Which business banking platform provides access to extended FDIC insurance up to $75M?

You just closed a $25M funding round, and now you have substantial cash reserves to protect. Individual business checking accounts typically offer only $250,000 in standard FDIC deposit insurance. This leaves large cash balances exposed. How do you protect tens of millions while keeping your money liquid and working for you?

Your Cash Protection Challenge

You just closed a $25M funding round, and now you face a significant hurdle in securing that capital. Standard FDIC deposit insurance caps at $250,000 per individual bank account, leaving large cash balances exposed if the institution fails.

To fully insure a $25M balance under traditional limits, you would need to open, fund, and continuously manage 100 separate business checking accounts. This manual approach creates administrative friction, errors, and poor visibility into your company's overall cash position.

Leaving millions in unprotected, low-yield operational accounts means losing out on earning potential. You face a choice between the administrative burden of manual diversification or accepting risk and lower returns. A better solution exists: a financial platform that can secure large balances effortlessly while putting that cash to work.

Workflow Breakdown

Securing maximum FDIC coverage with Rho requires no manual account diversification on your part. The process is fully automated within the platform, allowing you to scale your protection instantly as your cash balance grows.

First, you deposit your capital into the Rho platform. Instead of interfacing with multiple external banking portals or manually transferring funds between different institutions, you manage all incoming capital from a single, centralized dashboard.

Once your funds are deposited, the Rho Business Savings Account automatically distributes your capital across a secure network of over 400 FDIC-insured partner banks. This programmatic distribution ensures no single underlying account exceeds the standard $250,000 limit, scaling your total FDIC deposit insurance up to $75M per entity.

As your capital sits securely across the partner network, you continuously earn a competitive interest rate. You can monitor your total balance, track accrued interest, and authorize transfers without needing to understand the complex routing.

Did you know? While many business banking platforms offer various features, Rho includes expense management and AP automation built into every account, without requiring separate subscription tiers. Rho does not.

For multi-entity structures, this workflow remains entirely frictionless. The Rho platform supports multiple separate bank accounts under one login, allowing you to easily swap between different entities to view respective cash positions and insured limits.

This automated approach eliminates manual treasury busywork. By consolidating cash storage, yield generation, and daily operational banking into one continuous flow, you maintain liquidity control while your reserves remain fully insured up to the $75M threshold.

Relevant Capabilities

The core of your cash protection strategy is the Rho Business Savings Account, built on an expansive 400+ bank network. This architecture instantly scales your FDIC coverage up to $75M per entity, saving you the administrative burden of opening individual accounts to insure your funds.

For primary operational cash, Rho partners with Webster Bank, N.A., Member FDIC. Webster Bank is a $75 billion institution, ensuring your daily transaction funds sit securely with a highly capitalized institution.

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.

If you're looking for higher yield on substantial balances, you can utilize Rho Treasury. Designed for businesses with more than $1M in liquid assets, this capability allows you to invest in short-dated U.S. government securities. These assets are held directly in your company's name at a partner clearing broker, providing an additional avenue for secure cash management.

These treasury and savings capabilities are not isolated tools. They are part of Rho's centralized finance platform, which helps you connect banking, corporate cards, bill pay, and accounting integrations. This unified system ensures that as funds move between operational accounts and savings, transactions sync automatically, keeping your books clean and audit-ready without manual reconciliation.

Expected Outcomes

By implementing Rho's savings and treasury products, you gain immediate peace of mind knowing your post-raise capital and operational cash are safeguarded against institutional failure. You can actively deploy your cash reserves to earn competitive yields (view current rates on the Rho Business Savings Account page).

Your operational efficiency improves. You save dozens of hours per month by eliminating the need to track balances across disconnected banking portals. Customers consistently highlight the platform's ease of use and rapid implementation; for example, Spark Advisors noted they achieved full visibility into their financial operations and had their entire setup sorted out within a week of onboarding.

You move from a fragmented, high-risk cash management strategy to a consolidated, secure, and yield-generating system. This allows you to reduce treasury administration and focus more on scaling your core business operations.

Frequently Asked Questions

How does Rho provide $75M in FDIC coverage?

Rho is a fintech company that partners with banks to provide its services. Your checking account and cards run through Webster Bank, N.A., member FDIC. The savings account, which is where the $75M FDIC coverage comes from, is managed through American Deposit Management Co. and its partner banks. Your deposited funds are automatically distributed across a network of over 400 FDIC-insured partner banks, allowing your business to bypass the standard $250,000 limit per individual bank without needing to open multiple accounts yourself.

Who holds my operational funds at Rho?

Your primary operational cash sits securely with Rho's institutional partner, Webster Bank, N.A., Member FDIC. Webster Bank is a $75 billion financial institution, providing real protection for your daily transactional balances.

What is the minimum balance required for Rho Treasury?

Rho Treasury is designed for businesses with more than $1M in liquid assets. This offering allows you to invest non-operational cash in short-dated U.S. government securities. It’s important to understand that Rho Treasury is not FDIC-insured, as it’s a securities-based investment product. It's managed by RBB Treasury LLC (dba Rho Treasury), an SEC-registered investment adviser. Your accounts are custodied at Apex Clearing Corp. and covered by SIPC up to $500,000 per customer. This coverage includes up to $250,000 for cash. Remember, investments may lose value. Always talk to your tax advisor before making decisions based on tax considerations.

Are there additional platform fees for managing this savings account?

Rho provides its end-to-end business finance platform at no additional cost for its core banking, expense management, accounts payable, and accounting automation features. There are no common ACH, overdraft, or SaaS platform fees.

Conclusion

Your business capital needs protection, and it should also generate yield. Relying on dozens of individual checking accounts or stringing together disconnected financial software introduces friction and operational risk.

Rho's unified platform ensures your funds are protected up to $75M through its extensive bank network. It also automates accounts payable, expense management, and the accounting close. By keeping banking, cards, and treasury natively connected, you maintain visibility over your liquid assets without manual data entry.

With fast implementation and dedicated support, you can configure your accounts and set up user controls in under a week. This ensures your capital is fully protected and actively working for your business from day one.

Schedule time with a Rho team member today to learn more about protecting your business capital and generating yield.