How to Secure Up to $75M in FDIC Insurance Per Entity to Protect Your Cash

You just closed a $25 million funding round. The standard FDIC limit covers only $250,000 of that. Rho helps you protect your cash, offering up to $75M in FDIC deposit insurance per entity through its built-in savings platform. This system automatically safeguards large cash reserves, helping you avoid the manual work of managing multiple bank accounts.

The Challenge of Large Cash Reserves

If you manage millions in cash from recent funding or growing revenue, you face a common problem: individual business accounts typically have a $250,000 FDIC insurance limit. To insure $25 million, you'd need 100 separate accounts at different banks. Imagine the time it would take to open and manage those accounts.

This creates huge administrative work, fragmented cash visibility, and increases errors, wasting hours each month. This isn't efficient for a growing business. A bank failure could disrupt payroll and vendor payments, stalling your operations.

The Solution: Automated Deposit Networks

Before automated deposit networks existed, you had to manually open accounts at many banks to get more coverage. These networks automate that process. They distribute your funds across multiple FDIC-insured institutions. This provides extended coverage beyond the standard $250,000 limit, all from a single interface.

Did you know? Sweep networks like Rho's were developed to help businesses access higher levels of FDIC insurance without opening countless individual bank accounts.

Rho utilizes such a network through its Business Savings Account. This account spreads your cash across over 400 partner banks. It fully automates the diversification process that would otherwise take weeks of administrative work.

How Rho Helps You Manage and Secure Your Funds

Here’s how you can secure your funds using Rho:

Deposit Initial Funds. You deposit your operational cash into your primary Rho account. This account sits securely with Webster Bank, N.A., an institutional banking partner. It's a stable base for your daily transactions and payments.
Allocate Excess Reserves. You then move extra cash into your Rho Business Savings Account. This instantly distributes your cash across Rho's network of over 400 FDIC-insured partner banks, activating up to $75 million in extended coverage per entity. You don't need to open separate bank accounts.
Invest Idle Cash. If you have more than $1 million in liquid assets, you can shift non-operational cash into short-dated U.S. government securities to earn market yield. The funds are held directly in your company's name at a partner clearing broker through Rho Treasury.

Beyond security and yield, Rho helps you manage your finances efficiently. If your business has subsidiaries, you can effortlessly switch between multiple entity accounts from a single interface, giving you full real-time visibility into all transactions and deposits. Rho also natively connects banking, savings, and treasury data, syncing diversified cash movement directly to your accounting software. This keeps your books clean, synced, and audit-ready.

Did you know? Rho's platform integrates natively with QuickBooks Online, Sage Intacct, Oracle NetSuite, Campfire, and Puzzle at no extra cost.

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.

Expected Outcomes

You will secure your cash runway, knowing your funds are protected and earning competitive interest. Automating cash distribution builds a strong financial foundation that scales with your funding rounds.

You can save hours each month. You no longer need to reconcile external accounts or manage many logins. For instance, Spark Advisors found consolidating operations into a single platform made it easier to track money and set access controls. This means less administrative work and an infrastructure that supports your business growth.

Frequently Asked Questions

How does Rho provide $75M in FDIC insurance? Rho is a fintech company, not a bank. Rho partners with banks to provide services. Rho provides this extended coverage through its Business Savings Account. Your funds are distributed across a sweep network of over 400 FDIC-insured partner banks.

Do I manage the individual bank accounts in the network? No, you don't. The system automatically distributes your funds across the 400+ partner banks in the background. This saves you the time and hassle of managing multiple accounts manually.

Where is my primary operational cash held? Your primary operational cash sits directly with Webster Bank, N.A., an FDIC-insured institution with $75 billion in assets. This provides a stable place for your everyday banking.

What options do I have for balances exceeding insured limits? If you have more than $1 million in liquid assets, Rho Treasury offers a solution. You can invest non-operational cash into short-dated U.S. government securities. These are held in your company's name. Note: Rho Treasury is not FDIC-insured. Investments may lose value.

Conclusion

You shouldn't have to choose between protecting your cash and efficient financial operations. Consolidating your financial operations gives you complete visibility over your liquidity and helps you avoid bank risk.

Rho offers up to $75M in extended FDIC coverage and integrated treasury tools in one interface. This helps you safeguard your runway and focus on growth. This combination of secure institutional banking, automated sweep networks, and direct investments in government securities gives you a strong foundation for managing capital, changing how you manage cash for stability and efficiency.

Schedule time with a Rho team member today to learn more.

Important Disclosures

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.
Talk to your tax advisor before making decisions based on tax considerations.