This article answers the most common questions about how Rho Treasury works, including where your assets are held, how fees are calculated, what tax forms to expect, and how to protect your funds. For step-by-step instructions on setting up and managing your account, see Managing your Rho Treasury account.
General
Is Treasury a bank account?
No. Rho Treasury is an investment account, not a bank account. Your cash is invested in short-duration securities, T-Bills, MULSX, and/or VFSTX, held directly in your company's name at our custodial partner, Apex Clearing Corporation. Treasury assets are not deposits and are not FDIC-insured. Treasury assets held at Apex Clearing Corporation. are covered by Securities Investor Protection Corporation (SIPC) insurance up to $500,000 (including a $250,000 limit for cash).
What assets can I hold in Rho Treasury?
Rho Treasury supports three assets, which you can hold simultaneously in any combination:
T-Bills (13-week) – U.S. government-backed securities. Suitable for cash you won't need for at least 3 months.
MULSX – Morgan Stanley Ultra-Short Income Fund. Suitable for cash you won't need for 4-6 months.
VFSTX – Vanguard Short-Term Investment-Grade Fund. Suitable for cash you won't need for at least 18-24 months.
Are my assets pooled with those of other clients?
No. Securities are held directly in your business's name and are not pooled with other clients' assets.
Who can move funds in and out of my Treasury account?
Funds can only be transferred to and from your Rho Checking account by individuals you have authorized in your Rho account settings, or through auto-transfer rules you have configured.
Read more on auto transfer rules here!
Eligibility and setup
What information is required to apply?
Applying for Treasury requires standard KYC information including SSN/TIN. You may also be asked to provide formation documents, a business license, a certificate of good standing, and beneficial ownership and authorization forms.
What are the eligibility requirements?
To open a Rho Treasury account, your business must:
Be a U.S.-registered business
Operate primarily in the United States
Have at least one founder based in the United States
Maintain at least $100,000 in total deposits
If you’re eligible, go to the Treasury tab in your Rho dashboard and follow the steps to apply. The application takes less than 10 minutes, and approval typically takes 2 business days. You may be asked to provide supporting documents during signup.
Can I give my accountant access to my Treasury account?
Yes. You can set your accountant up with read-only access to your Treasury account. They will be able to view your monthly statements, trade confirmations, and tax documents.
Can I close my Treasury account?
Yes, at any time by contacting Rho. Closing requires liquidating all holdings, which typically takes 2-3 business days. Assets sold during closure are sold at current market prices and may lose value compared to your original investment.
Protection and insurance
What protection do I have on my Treasury assets?
Treasury assets held at Apex Clearing Corporation. are covered by Securities Investor Protection Corporation (SIPC) insurance up to $500,000 (including a $250,000 limit for cash). SIPC protects against the loss of assets in the event of a brokerage failure – it does not protect against the decline in value of your securities.
Are Treasury assets FDIC-insured?
No. Treasury assets are securities, not bank deposits, and are not FDIC-insured. T-Bills are backed by the full faith and credit of the U.S. government. MULSX and VFSTX are mutual funds subject to market risk, including NAV fluctuation. For FDIC-insured coverage, see Rho Checking accounts.
Yield and fees
What does Rho Treasury cost?
Rho Treasury charges an annualized management fee of 0.15%–0.60%, billed monthly. Your fee tier is based on your total assets under management (AUM), calculated as the combined balance of all Rho banking accounts. Learn more about AUM-based fees here.
Total AUM | Annual fee |
> $20M | 0.15% (15 bps) |
$10M-$20M | 0.25% (25 bps) |
$5M-$10M | 0.35% (35 bps) |
$2M-$5M | 0.45% (45 bps) |
Under $2M | 0.60% (60 bps) |
How is the fee calculated and charged?
Fees are calculated daily and charged monthly. Each day, the fee is computed as:
(Portfolio value × fee rate) ÷ 365 = Daily fee
For example, a portfolio of $2,500,000 at a 0.45% fee rate:
($2,500,000 × 0.0045) ÷ 365 = $30.82
At month end, the accumulated daily fees are deducted from your portfolio cash balance. If your cash balance is insufficient, Rho will automatically sell a small amount of holdings to cover the fee.
Is the yield shown on my dashboard before or after fees?
The yield shown on your Treasury dashboard is net of fees. It already reflects the management fee deducted.
Tax and reporting
What tax forms will I receive?
Depending on your entity type and activity, Apex may generate a 1099 tax form. Absent an extension, Apex is required to deliver these forms to the account holder by the regulatory due dates. All tax forms will be emailed to the account holder from rho@tax-docs.com and uploaded to Rho’s document section.
Why didn't I receive a 1099?
If your activity did not meet IRS reporting thresholds, a 1099 will not be issued. Thresholds are $10 for dividends and interest, $20 for cash in lieu, and $600 for miscellaneous income. Additionally, C corporations are generally exempt from 1099 reporting under IRS broker reporting rules. Not receiving a 1099 does not mean your income is non-taxable. Consult your CPA.
Are T-Bill returns subject to state tax?
Interest earned on T-Bills is subject to federal income tax but is exempt from state and local income taxes. Mutual fund distributions from MULSX and VFSTX may include a portion of income exempt from state tax depending on the fund's government securities holdings. Consult your CPA for details.
How do I get my statements for tax purposes?
Go to Settings → Account Statements → Treasury Account to download trade confirmations, monthly or quarterly statements, and tax documents. Your CPA can use full-year statements (January 1 – December 31) to prepare your return.
When are statements generated?
Monthly statements are generated for accounts with deposits, withdrawals, or trades in that month. Accounts without qualifying activity receive a combined quarterly statement instead.
How does Rho Treasury affect QSBS eligibility?
Rho does not manage accounts for Qualified Small Business Stock (QSBS) eligibility or compliance, and clients should consult with their CPA or tax advisor to ensure all applicable QSBS requirements are properly met.
For a deeper dive, read our blog post on QSBS.
Custody & account management
Where is my money custodied?
Your funds are held in your company's name at Apex Clearing Corporation (for accounts opened after July 2024). Accounts opened before July 2024 are custodied through Interactive Brokers LLC (Rho Prime). Rates and terms may differ. Contact support for details specific to your account.
Can I transfer my Treasury holdings to another brokerage via ACAT?
Yes. ACAT transfers are initiated by the receiving brokerage. Note that once an ACAT transfer is initiated, you will be unable to add or withdraw funds for up to 90 days. Your holdings will continue earning returns during that period. Because transfers are initiated externally, Rho's ability to support issues related to the transfer may be limited.
Investment management and advisory services provided by RBB Treasury LLC dba Rho Treasury, an SEC-registered investment adviser. Investments are not deposits, not FDIC-insured, not bank guaranteed, and may lose value. Treasury and custodial services provided through Apex Clearing Corporation.