Flourish Cash was designed to provide customers with increased levels of FDIC coverage and our systems are built so that every dollar can remain eligible for FDIC insurance.1 By default, we do not allow balances to exceed the total FDIC coverage limit available across our Program Banks for individual and joint accounts. However, we can accept more funds than the currently available FDIC coverage upon request; simply reach out to our client support team to discuss.
By default, the maximum balance we will accept for individual and joint accounts is dictated by the total amount of FDIC insurance coverage you have available. Currently, we work with eight Program Banks for our individual and joint accounts. Because we work with eight program banks today, that means you are eligible to receive up to $2 million in FDIC insurance for an individual account and $4 million in FDIC insurance for a joint account.
So, what’s the bottom line? If you have an individual account, the maximum balance is $2 million. If you have an individual account and a joint account, the maximum balance is $6 million, while the maximum balance for a two-person household with two individual accounts and a joint account is $8 million.
Please note that if you opt out of keeping money at certain Program Banks, the amount of FDIC insurance available to you decreases. If you were to opt out of one Program Bank, the maximum amount for an individual account would decrease by $250,000, while the maximum amount for a joint account would decrease by $500,000.
We expect to increase the number of Program Banks we work with over time, so we expect the total amount of FDIC coverage we can provide—and, therefore, the maximum balance we can support—will increase over time. We’ll be sure to let you know as things change.
For corporate and nonprofit accounts, there is no maximum balance. We can provide up to $1.5 million FDIC coverage,1 but your organization is free to deposit any amount into its Flourish Cash account and you will earn the same interest rate on the entire balance.
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 6 Program Banks available to accept deposits for institutional Flourish Cash accounts (accounts for corporations, partnerships and other legal entities) and at least 8 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 $1,500,000 of FDIC insurance and personal customers are eligible for (i) up to $2,000,000 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 $4,000,000 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. For additional information regarding FDIC coverage, visit https://fdic.gov.