Flourish

Program enhancements:

Expanded FDIC coverage and increased amount in our top-tier rate


April 17, 2023

Estimated reading time: 3 minutes

 

Recent events in the banking sector have demonstrated the importance of advisors having solutions to help clients with held-away cash. To provide advisors and clients with even more support, we're excited to announce enhancements to the Flourish Cash† program: more security, and room for more cash to earn our top-tier rate.

As of Monday, April 17, we have: 

  • Increased FDIC coverage through our Program BanksΩ 
  • Doubled the amount of money available to receive our current top rate of 4.40% APY3
  • Added two new banks to the program

1. Increased FDIC insurance coverage

We have increased FDIC coverage across all account types: 

  • $1.5MM for individual accounts 
  • $3MM for joint accounts 
  • $1.5MM for business accounts

Two-person households are eligible to receive up to $6MM in FDIC insurance by opening a joint account and two individual accounts. Existing clients can simply log in and click "Create New Account" on the center-left of the main dashboard.

This additional protection – far exceeding the coverage of a typical bank account – gives clients assurance that their funds are safe, secure, and backed by the U.S. government. 

2. Earn more on double the cash

We have doubled the amount of money eligible to receive our top-tier rate of 4.40% APY to help you deliver even more interest to clients with higher balances. Clients earn up to 4.40% APY on:

  • Individual accounts up to $500k
  • Joint accounts up to $1MM
  • Business accounts up to $500k

Two-person households that open a joint account and two individual accounts are able to earn the top rate on up to $2MM. Remaining balances will earn our second-tier rate of 4.00% APY.

Existing clients can simply log in and click "Create New Account" on the center-left of the main dashboard.

3. Adding Program Banks

We have added two banks, TriState Capital Bank and Associated Bank, to the Flourish Cash Program Banks. As always, new and existing clients can easily opt out of having their funds deposited at any particular Program Bank(s).

TriState Capital Bank is a commercial and private bank headquartered in Pittsburgh, PA that serves middle market businesses and high-net-worth individuals. TriState has $14B in assets and an A3 credit rating.

Associated Bank is the largest bank holding company based in Wisconsin with $39B in assets and an A3 credit rating. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from more than 200 banking locations serving more than 100 communities throughout Wisconsin, Illinois, and Minnesota.

For more information about how banks are added to the program, we have created an overview of our bank due diligence and risk monitoring process. 

We are excited to help Flourish Cash customers earn even more while being assured of the continued safety and security of their assets. If you have any questions, please contact our Support team. We’re always happy to help.

 

About Flourish

Flourish builds technology that empowers financial advisors, improves financial lives and retirement outcomes, and delivers new and innovative investment options to advisors. Today, the Flourish platform is used by more than 500 wealth management firms representing more than $1.5 trillion in assets under management. Flourish is wholly-owned by MassMutual. For more information, visit www.flourish.com.

 

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Flourish is an online platform through which investors can access financial services and products. The services and products offered through Flourish are provided by different entities and are subject to different terms, investor protections and risks. Flourish Cash is offered by Flourish Financial LLC, a registered broker-dealer and FINRA member. Flourish Financial LLC is not a bank. Check the background of Flourish Financial LLC and its personnel on FINRA's BrokerCheck. Flourish Crypto is offered by Paxos Trust Company, LLC, a New York limited purpose trust company regulated by the New York Department of Financial Services that provides cryptocurrency custody and execution services for the Flourish Crypto accounts, and Flourish Digital Assets LLC, which is registered in New York as a commodity broker-dealer and provides website and other technology services and support for Flourish Crypto accounts. Flourish Financial LLC and Flourish Digital Assets LLC are affiliates, but are not affiliates of Paxos. Please review the Legal section of our website, and the disclosures provided with each Flourish service or product, for further information regarding each service and product. If you were introduced or invited to Flourish by a third-party investment adviser or other third party, whose name or logo may be shown above, please be aware that, unless otherwise disclosed to you, they are not affiliated with any Flourish entity. The role of the investment adviser or other firm that invited you to Flourish may vary between different Flourish services and products, as further described in the terms for each service or product. © 2023 Flourish. All rights reserved.

1 A Flourish Cash account is a brokerage account offered by Flourish Financial LLC.  Flourish Financial LLC is not a bank. The cash balance in a Flourish Cash account will be swept from the brokerage account to deposit account(s) at one or more third-party banks that have agreed to accept deposits from customers of Flourish Financial LLC (Program Banks). The accounts at Program Banks will pay a variable rate of interest. If you were introduced or invited to Flourish Cash by a third-party investment adviser or other third party, whose name or logo may be shown above, please be aware that, unless otherwise disclosed to you, they are not affiliated with Flourish Financial LLC and will not provide any advisory or brokerage services for your Flourish Cash account or have the authority to provide instructions on your account. 

2 The cash balance in a Flourish Cash account that is swept to one or more Program Banks is eligible for FDIC insurance, subject to FDIC rules, including FDIC aggregate insurance coverage limits. FDIC insurance will not be provided until the funds arrive at the Program Bank. There are currently at least 4 Program Banks available to accept deposits for institutional Flourish Cash accounts (accounts for corporations, partnerships and other legal entities) and at least 5 Program Banks available to accept deposits for personal Flourish Cash accounts (individual, joint and revocable trust accounts), and we are not obligated to allocate customer funds across more than this number of Program Banks if there is a greater number of banks in the program. Customers are generally eligible for FDIC insurance coverage of $250,000 per customer, per Program Bank, for each account ownership category. Thus, institutional customers are eligible for up to $1,000,000 of FDIC insurance and personal customers are eligible for (i) up to $1,250,000 of FDIC insurance for either (A) an individual account or (B) an account for a revocable living trust in which one person is the only grantor, trustee and beneficiary of the trust ("Individual Revocable Trust Account") and (ii) up to $2,500,000 of FDIC insurance for either (A) a joint account with two owners or (B) an account for a revocable living trust in which the same two persons are each the only grantors, trustees and beneficiaries of the trust ("Joint Revocable Trust Account"). The total FDIC coverage for a two-person household is calculated assuming that each household member has an individual account and that both household members share a joint account. If the number of Program Banks decreases for a customer (either because a Program Bank is no longer participating in Flourish Cash, because a customer's cash is not eligible to be swept to a Program Bank based on criteria set by the Program Bank (which will be disclosed at account opening), or because a customer opts out of having their cash swept to a particular Program Bank), the amount of FDIC insurance for which the customer would be eligible through Flourish Cash would be lower. Typically, all of a customer's deposits at a Program Bank in the same ownership category (including deposits held outside Flourish Cash or held through multiple Flourish Cash accounts with the same ownership category) count toward the FDIC insurance limit for deposits at that Program Bank. Customers are responsible for monitoring whether they maintain deposits at a Program Bank outside of Flourish Cash and should consider opting out of having their cash swept to any such Program Bank to avoid exceeding FDIC insurance limits. Although Flourish Cash is offered through a brokerage account and cash held in brokerage accounts often has the benefit of SIPC protection, until such time as we offer securities products, customers likely will not have the benefit of SIPC protection for cash held in their Flourish Cash account. Further, SIPC protection is not available for any cash held at the Program Banks. Our current Program Banks can be found here. For additional information regarding FDIC coverage, visit https://fdic.gov/.

3 Flourish Cash currently has a tiered interest rate structure, as set forth in the rate tier summary. We deposit your cash first with one or more of the Program Banks in the tier with the highest interest rate, up to the maximum amount of deposits for that tier, and then continue depositing cash at Program Bank(s) in each successive tier until all cash has been deposited, subject to any Program Bank opt out elections you have made. Each annual percentage yield (APY) displayed here is effective as of 03/27/2023 and may change at any time. The rates of interest paid by the Program Bank(s) to Flourish Cash customers may be lower than the rate that could be earned by you opening a deposit account directly with such bank(s).