Flourish Cash Announces Significant Raise in FDIC Insurance Coverage and Elevated Interest Rate
Two-Person Households Now Eligible to Receive up to $10M in FDIC Insurance Through its Program Banks
New York, Sept. 08, 2023 (GLOBE NEWSWIRE) — Flourish, a platform that provides innovative access to financial products that help registered investment advisors (RIAs) secure their clients’ financial futures, today 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%.
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 (current rates can be found via https://www.flourish.com/rates).
“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.
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 supports more than $3.4 billion in assets under custody and is used by more than 600 wealth management firms representing more than $1.5 trillion in assets under management. Flourish is wholly-owned by Massachusetts Mutual Life Insurance Company (MassMutual). For more information, visit www.flourish.com.
Forward Looking Statements
This press release may contain forward looking statements that are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. A Flourish Cash account is a brokerage account offered by Flourish Financial LLC. Flourish Financial LLC is not a bank. Check the background of Flourish Financial LLC and its personnel on FINRA’s BrokerCheck.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. 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. Flourish Cash’s current Program Banks can be found here. For additional information regarding FDIC coverage, visit https://fdic.gov/ and https://www.flourish.com/advisors.This feedback may not be representative of the experience of other customers, and is not a guarantee of future performance or success.
CONTACT: Marissa Arnold [email protected]