This FAQ applies to Flourish Cash. You can review Flourish Crypto FAQs here.
While we certainly do not expect that any of our Program Banks will fail, your cash at that Program Bank would be backed by the protection of FDIC insurance1, subject to applicable FDIC insurance coverage limits. Unless you have deposited cash beyond the amount of FDIC insurance coverage available through Flourish Cash, we allocate your balance across our Program Banks so that your money held at each specific Program Banks is below the FDIC insurance limit for that Program and Bank and your entire balance across all Program Banks is eligible for FDIC insurance. The total amount of FDIC insurance coverage available through the Flourish Cash Program Banks for each account type is available at https://www.flourish.com/clients/cash. The Federal Deposit Insurance Corporation (FDIC) is a United States government agency providing deposit insurance to depositors in U.S. banks and savings institutions and is backed by the full faith and credit of the United States government, meaning your money is protected within the limits of FDIC insurance coverage. For additional information regarding FDIC coverage, please visit https://fdic.gov/.
Please also see this article for more details on Flourish Cash Institutional accounts.
The cash balance in a Flourish Cash account that is swept to one or more Program Banks is eligible for FDIC insurance, subject to FDIC rules, including aggregate insurance coverage limits. FDIC insurance will not be provided until funds arrive at the Program Bank. There are currently at least 16 Program Banks available to accept deposits for business Flourish Cash accounts and personal Flourish Cash accounts, and we are not obligated to allocate customer funds across more than this number of Program Banks if there is a greater number of banks in the program. Customers are generally eligible for FDIC insurance coverage of $250,000 per customer, per Program Bank, for each account ownership category. Thus, business customers are eligible for up to $4,000,000 of FDIC insurance and personal customers are eligible for (i) up to $4,000,000 of FDIC insurance for an individual account or revocable living trust account and (ii) up to $8,000,000 of FDIC insurance for a joint account with two owners or joint revocable living trust(s). The total FDIC coverage for a two-person household is calculated assuming that each household member has an individual account and that both household members share a joint account. If the number of Program Banks decreases for a customer (for instance, because a customer chooses to exclude Program Banks from receiving their deposits), the amount of FDIC insurance through Flourish Cash could be lower. Typically, all of a customer’s deposits at a Program Bank in the same ownership category (including deposits held outside Flourish Cash or held through multiple Flourish Cash accounts with the same ownership category) count toward the FDIC insurance limit for deposits at that Program Bank. Customers are responsible for monitoring whether they maintain deposits at a Program Bank outside of Flourish Cash and should consider choosing to exclude that Program Bank from receiving their deposits to avoid exceeding FDIC insurance limits. Although Flourish Cash is offered through a brokerage account and cash held in brokerage accounts often has the benefit of SIPC protection, until such time as we offer securities products, customers likely will not have the benefit of SIPC protection. SIPC protection is not available for cash held at the Program Banks. Our current Program Banks can be found here. For additional information regarding FDIC coverage, visit https://fdic.gov.