Our Insured Cash Program: How It Works and What to Consider

Most people know the FDIC covers bank deposits up to $250,000 per depositor, per bank, for each ownership type. Fewer people think about what happens above that. If you just sold a house or a business, or you keep a big cash cushion for your company, you can blow past that limit at one bank without noticing.

The old fix was opening accounts at five different banks and keeping track of all of them. That works, but it's a hassle.

An insured cash program does that legwork for you. You make one deposit, and the program administrator spreads it across a network of FDIC-insured banks. It keeps the amount at each bank at or under the insurance limit, so the coverage on the whole balance can end up well above $250,000. You still see one account, one online login, and one 1099 at tax time.

We make this available to our clients through the Cantor Fitzgerald Insured Cash Program, which is administered by StoneCastle Network. As of June 2025, the program works with roughly 950 banks and provides FDIC coverage of up to $25 million per tax ID. We don't charge an advisory fee on cash held in the program, and we don't receive any payment from Cantor Fitzgerald or StoneCastle for recommending it.

A few things to know before you use it:

• It's for non-retirement accounts, and the minimum opening deposit is $100,000.
• Deposits received by 3 PM ET are placed the same day. Withdrawals usually arrive the next business day.
• It's not a checking account, so there are no checks, debit card, or bill pay. There are also no transaction fees.
• The interest rate mostly moves with the Federal Reserve's rate, so it goes up and down over time. The program is not a money market fund or an investment in securities.
• FDIC coverage depends on the deposits being placed correctly and on what else you hold at the same banks. If you already bank at a network bank, you can ask to exclude it.
• Minimums, coverage limits, and terms are set by the program and can change. The program agreement has the full details.

Is it right for you? It depends on how much cash you hold and why, and how soon you'll need it. If you want to talk through where your cash sits, give us a call.