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Date7 Jan 2022
AuthorOlivia McNaughten

A Deeper Look at Rho’s Commercial Banking Solution

Rho Accounts
January 7, 2022
7 min read
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Olivia McNaughtenDirector of Product Marketing

Choosing the best business banking account doesn’t have to be a struggle—Rho’s convenient checking and treasury management solutions make it easy.

These days, there are numerous business banking options on the market. But smart finance teams understand that not all accounts are created equal. The trouble is, many banks tend to complicate matters with an overabundance of products, account tiers, and convoluted terms and conditions, so finding the best banking solution for your team can require some extra digging.

At Rho, we follow the KISS principle, focusing on industry-leading quality instead of quantity when it comes to commercial-grade banking.

Below, we lay out our two account options and demonstrate how they provide all the features, controls, and technology your company will ever need to effectively manage its finances. 

Commercial checking accounts: what to look for

Your checking account is the financial nucleus of your business. You use it for routine operations every day, including making payments to vendors, accepting payments from clients, running payroll services, and so on.

Here are a few qualities to look for when selecting a business checking account for your team:

Easy access to funds

Of all commercial accounts, business checking comes with the fewest restrictions on moving capital. Your banking platform should offer several ways to deposit and withdraw funds, including checks, ACH, wires, foreign exchange (FX) payments, and smooth transfers between accounts.

With integrated business banking, fee-free global payments, and industry-leading 0.6% FX rates, Rho makes it simple (and painless) to manage and move money as you need. 

Scalability and versatility

In addition to accommodating all your current needs, your commercial banking platform should support your future growth—whether that means increasing transaction limits or seamlessly connecting multiple accounts for newly formed entities. 

As your business scales, Rho allows you to manage accounts for up to ten entities per tax ID—including portfolio companies and subsidiaries—with one simple, secure login. 

Robust FDIC insurance

Make sure your business checking account is backed by FDIC insurance. It’s a failsafe designed to give you peace of mind that your capital is protected regardless of what happens with your financial institution. As stated on the FDIC website: “No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933.”

Rho Checking accounts make FDIC insurance a priority, covering up to $250K in deposits. 

Ironclad security and risk management

Online security is constantly evolving, so it’s wise to ensure your business banking platform is employing the latest measures to keep your finances safe and secure. 

For example, if multiple people in your organization use the same credentials—or if logging in only requires a single password for authentication—those are signs that your finances are exposed to higher risk.

Rho provides best-in-class security on all accounts, including two-factor authentication via Authy for every login, transaction, or new card built-in, plus automated approval workflows for large transactions, and unique, role-based permissions for every user, from employees to bookkeepers.

An advanced digital platform

These days, nearly every commercial account comes with some level of online banking. However, you don’t have to settle for basic features like balance checks and online bill pay. Advanced banking platforms offer built-in automation and other tools to help your team work smarter—not harder.  

Rho Checking Accounts include modern features like budgeting and instant reporting, as well as seamlessly integrating with our automated AP, fee-free global payments, and corporate cards. All transactions (from FX transfers to bill pay) are synced to your GL and mapped to the right category, helping to automate your accounting so you can reconcile with speed.

Low (or no) fees

This is a big one. The cost of business banking can vary significantly between financial institutions. Be sure to read the fine print of your account terms to learn if you’ll be paying fees for monthly service, ACH and wires, excess transactions, or any other hidden charges.

The Rho Checking account is part of our fee-free platform. That includes ACH and global payments (like international USD wires) for $0 each and no hidden charges. To get an idea of how much your business could save, check out our transparent pricing page.

Treasury management accounts: why your business should have one

A treasury management account is essentially an interest-yielding savings account for fast-growing companies. Sure, you could keep all of your capital in a checking account, but that’s generally not the safest (or most rewarding) approach.

A treasury management account offers a higher interest rate on all deposits over a set minimum—but it also imposes more transactional restrictions, since federal law permits just six fee-free withdrawals or transfers per month.

There are several benefits to complementing your commercial checking account with a treasury management option:

  • Sheltered savings: A treasury account allows you to safeguard revenue and profits you won’t need to access for upcoming operating expenses.

  • Easy mobility: Within federal limits, the funds in a treasury account can be quickly transferred to checking to address cash flow needs or unforeseen expenses.

  • Greater monetary rewards: Earning a higher interest rate helps you maximize yield and avoid cash drag.

  • Customized security: You can reduce the risk of fraud by protecting reserve funds in a separate account with tighter controls than your regular commercial checking.

  • Increased insurance coverage: To reflect the greater amount of capital within, FDIC insurance options are generally higher for a treasury management account.

For instance, the Rho Treasury Management Account extends up to $75M in FDIC insurance for auxiliary deposits over $250K, using a network of over 300 financial institutions.

Don’t underestimate service.

So far, we’ve covered the features and benefits of commercial banking products. But if there’s another factor you shouldn’t overlook, it’s service.

Large banks operate on a traditional model, which can result in rigid rules, slow decision-making processes, frustrating phone trees, and getting passed around to multiple customer support representatives.

On the other hand, many digital-first neobanks and fintechs rely heavily on automation, resulting in an impersonal, hands-off customer experience. When it comes to something as important as your company’s finances, you deserve more than chatbot support. 

At Rho, we pride ourselves on dependable, personalized service. During onboarding, you’re matched with a dedicated Rho Banking Specialist who will get to know your company’s financial needs and be by your side every step of the way to help you grow. Plus, our live support experts are available seven days a week.

Want to see what it looks like in action? Reach out and get the process moving—you’ll be surprised at how quickly Rho’s commercial accounts can make a difference.

How to get started

If you’re looking to open a Rho Checking or Rho Treasury Management account, we recommend having the following documents at the ready to make the process quick and easy.

For the company:

  • EIN letter from the IRS

  • Articles of incorporation

  • Local business license (if out-of-state)

  • Primary business address

For beneficial owners (meaning anyone with 25% or more direct or indirect ownership):

  • SSN and a photo ID (if a U.S. citizen)

  • A copy of your passport (if not a U.S. citizen)

Looking for answers?

If you have any questions or want to take our platform for a spin, request a hassle-free meeting with one of our business banking specialists. We’ll help you gauge if Rho is the right fit for you.

Reach out