Date10 Mar 2023
AuthorJustin Wolz

How Rho's Treasury Management Account Works

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Justin WolzDirector, Communications

The current rising interest rate environment and the evolving situation involving one of Silicon Valley’s largest banks have prompted companies to closely scrutinize their cash allocation strategy in pursuit of two objectives. 

First, ensure cash reserves are safeguarded by instruments like FDIC deposit insurance*. This can be challenging because business checking accounts are only FDIC deposit-insured up to $250K. Let’s say a company founder has $25M in deposits from a recent raise and wants to increase its FDIC protection to prevent liquidity issues. They would need to spend an impractical amount of time and energy opening 100 business checking accounts for all funds to be FDIC-deposit insured. 

Second, to generate market-competitive yield with current interest rate levels. As interest rates have risen from zero, treasury management has become a focal point for companies looking to activate their cash reserves and extend their runway safely. 

We designed our Treasury Management Account product to help companies achieve both goals simultaneously, especially during these turbulent times. Here is how it works.

How Treasury Management Account Works

The Rho Treasury Management Account is built on a network of over 400 FDIC-insured banks, allowing you to access up to $75M in FDIC deposit insurance per entity. This coverage saves you the hassle of opening multiple bank accounts to insure your funds. In addition, our Treasury Management Account allows you to earn interest on your funds – giving you the peace of mind that your cash is protected and working for you.

Should you want to earn a higher yield, we offer Rho Prime Treasury, a treasury offering that helps businesses with more than $1M in liquid assets invest in short-dated government securities that are held in your name at our partner clearing broker – all accessed from the same platform you use to manage your banking, expenses, and bill payments. 

After experiencing first-hand how difficult it was for businesses to access commercial-grade banking and treasury services, we built Rho to help companies safely and effectively manage their cash and ultimately scale growth. 

For those needing the fast support and fund diversification that Rho’s Treasury Management Account offers, get started with us today. 

*Insured through the network of over 400 FDIC deposit-insured banks.

Banking services provided and cards issued by Webster Bank, N.A., Member FDIC. All Rights reserved. © 2019-2023 Under Technologies, Inc. DBA Rho Technologies. Rho is a trademark of Under Technologies, Inc. Rho is not a bank. Rho partners with FDIC-insured banks to offer banking products and services.

Investment management and advisory services provided by RBB Treasury LLC dba Rho Prime Treasury, an SEC-registered investment adviser. RBB Treasury LLC facilitates investments in securities: investments are not deposits and are not FDIC Insured • Investments are not bank guaranteed, and may lose value. Investment products involve risk and past performance does not guarantee future results.