Flourish SmartBalance helps you automatically manage the balance of a checking account linked to your Flourish cash account. You can set a Target Balance for your linked checking account, which is the balance you would like to maintain in that account. Flourish will review the linked account’s balance every two weeks and, if needed, will move money into or out of the account to help maintain the Target Balance.
The Target Balance Range is a small buffer around the Target Balance you set for your linked checking account. It’s designed to prevent unnecessary transfers when your checking account balance is only slightly above or below your Target Balance.
When a transfer is needed to reach the Target Balance, we’ll move an amount equal to the difference between your actual checking account balance and your target balance, adjusted by a small buffer of ±2.5% depending on whether a deposit or withdrawal is required.
The 2.5% Buffer Explained
Flourish applies a 2.5% buffer to your Target Balance to help smooth out normal day-to-day changes in your checking account balance. The buffer is rounded up to the nearest $10 increment for simplicity.
Example:
- You set your Target Balance at $5,000
- 2.5% of $5,000 = $125
- Rounded to the nearest tens place → $130
- Your effective Target Balance in our system becomes $4,870 on the lower end or $5,130 on the upper end.
Now, let’s say the most recent balance update received for your checking account is $5,829.62.
- Flourish compares your balance to the adjusted Target Balance of $5,130
- The difference is $699.62 ($5,829.62 − $5,130)
- Flourish would schedule a deposit of $699.62 into your Flourish Cash account
In this case, SmartBalance would schedule a deposit of $699.62 into your Flourish Cash account.