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 insurance, subject to applicable FDIC insurance coverage limits.1 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/.
1 Typically, all of a customer’s deposits at a Program Bank (including deposits held outside Flourish Cash) 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 opting out of having their cash swept to any such Program Bank to avoid exceeding FDIC insurance limits. If a customer has deposits at a Program Bank outside of Flourish Cash and does not opt out of having their cash swept to such Program Bank, that customer could have funds swept to the Program Bank in an amount above the applicable FDIC insurance limit, and such funds above that limit would not be eligible for FDIC insurance.
Please also see this article for more details on Flourish Cash Institutional accounts.