Two-Person Households Now Eligible to Receive up to $10M in FDIC Insurance Through its Program Banks
Flourish, a platform that provides innovative access to financial products that help registered investment advisors (RIAs) secure their clients’ financial futures, announced that Flourish Cash, its cash management offering, has raised its already elevated FDIC insurance coverage through its Program Banks. The increased FDIC insurance coverage will allow two-person households to be eligible to receive up to $10M in FDIC insurance through a joint account and two individual accounts. The company has also increased its top tier annual percentage yield (APY) interest rate to 5.00%.
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Since the beginning of 2023, Flourish has added 8 additional banks to its Program Bank network to further increase the FDIC coverage offered to its clients, joining established names like Citibank, HSBC, and PNC Bank. Through these bank relationships, Flourish Cash clients will now be eligible to receive up to $2.5M for individual and business accounts and up to $5M for joint accounts.
“We’ve heard from our advisors that their higher net worth clients and business owners want the security of insured deposits for their non-portfolio cash assets. We’re pleased to be able to further meet that need with up to $10 million in FDIC insurance for a 2-person household–doubling our FDIC coverage since the beginning of the year,” said Max Lane, CEO of Flourish. “For financial advisors, ensuring the security of clients’ investments and assets remains a paramount concern. Since inception in 1933, not a single penny of FDIC-insured money has ever been lost. Now more than ever, it’s important to check in with clients: are their cash savings fully FDIC-insured? Are they earning a competitive rate?”
In addition to elevated FDIC insurance, Flourish Cash clients benefit from current interest rates that are more than 11x the national savings account average. As of September 7, 2023, clients now earn 5.00% APY on the first $500K in an individual or business account and the first $1M in a joint account, with a rate of 4.50% APY for the remaining balance.
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“This is a win for both clients and advisors. Clients benefit from growth and protection while advisors deliver on their commitment to holistic financial planning and get visibility into held-away assets–with a clear path to bringing them into the portfolio. With 75% of investors holding onto or increasing their cash holdings in the past year, every advisor needs a solution for their clients’ cash savings,” Lane continued. “Flourish Cash was built explicitly for RIAs to meet their unique needs. This year, over 150 new RIA firms have onboarded with us, and we have more than doubled assets under custody to over $3.4B. Additionally, Flourish Cash has paid out over $67 million in interest to clients in 2023.”
Over 600 RIAs managing over $1.5 trillion in combined assets trust Flourish to bring more assets into their orbit. The Flourish platform allows advisors to feature their firm’s branding, obtain visibility into balances, statements, and tax documents—as well as access client-friendly materials, robust and customizable compliance resources, white-glove support, and more. RIAs can also incorporate their clients’ cash holdings into their core technology systems.
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