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.2 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 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 FDIC aggregate insurance coverage limits. FDIC insurance will not be provided until the funds arrive at the Program Bank. There are currently at least 4 Program Banks available to accept deposits for institutional Flourish Cash accounts (accounts for corporations, partnerships and other legal entities) and at least 5 Program Banks available to accept deposits for personal Flourish Cash accounts (individual, joint and revocable trust 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, institutional customers are eligible for up to $1,000,000 of FDIC insurance and personal customers are eligible for (i) up to $1,250,000 of FDIC insurance for either (A) an individual account or (B) an account for a revocable living trust in which one person is the only grantor, trustee and beneficiary of the trust (“Individual Revocable Trust Account”) and (ii) up to $2,500,000 of FDIC insurance for either (A) a joint account with two owners or (B) an account for a revocable living trust in which the same two persons are each the only grantors, trustees and beneficiaries of the trust (“Joint Revocable Trust Account”). 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 (either because a Program Bank is no longer participating in Flourish Cash, because a customer’s cash is not eligible to be swept to a Program Bank based on criteria set by the Program Bank (which will be disclosed at account opening), or because a customer opts out of having their cash swept to a particular Program Bank), the amount of FDIC insurance for which the customer would be eligible through Flourish Cash would 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 opting out of having their cash swept to any such Program Bank 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 for cash held in their Flourish Cash account. Further, SIPC protection is not available for any cash held at the Program Banks. Our current Program Banks can be found here. For additional information regarding FDIC coverage, visit https://fdic.gov.
2 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.