Where should a startup keep its cash?
Last updated 2026-10-17. Rates snapshot 2026-10-16; each figure carries the provider's own as-of date and links to its source.
A practical, sourced guide for founders after a raise. Safety and liquidity come first; yield comes third.
1. Know what's actually insured
FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each ownership category. A $3M round in one account at one bank is mostly uninsured. The FDIC also lists U.S. Treasury bills among products it does not insure.
SIPC protects up to $500,000 (including $250,000 cash) of securities and cash at a failed member brokerage. It doesn't protect against a fall in value. Money market funds, T-Bills and bond funds in a treasury account fall under this kind of protection, not FDIC.
2. Split cash by when you'll need it
- Operating cash (near-term payroll and bills): a business checking account. If the balance is large, use one with a sweep network that spreads deposits across many banks.
- Reserve cash (needed in the next several months): a government money market fund, which invests in liquid short-term debt and usually offers same-day or next-day access.
- Longer-dated cash: short-term T-Bills, staggered to mature when you expect to spend.
- A second institution: a small account elsewhere, with signers set up, in case your main account is frozen or unavailable.
3. Compare protection and liquidity, not just yield
| Provider | Type | Protection | Liquidity |
|---|---|---|---|
| Brex | Securities (SIPC) | Treasury: SIPC (Brex Treasury LLC), not FDIC. Separate Vault sweep: up to $6M FDIC across 24 program banks | Same-hour (per Brex) |
| Ramp | Securities (SIPC) | SIPC up to $500K (incl. $250K cash) via Apex Clearing; not FDIC | Short-term balance same-day; long-term sleeve ~2 business days (may return less before maturity) |
| Mercury | Securities (SIPC) | SIPC up to $500K (incl. $250K cash) via Apex Clearing; not FDIC. Checking/savings: up to $5M FDIC via sweep | MMF same day if by 3pm ET; ultra-short 1–2 business days (up to 4) |
| Meow | Securities (SIPC) | Securities via Atomic Brokerage (SIPC member), custody BNY Pershing; not FDIC. Sweep FDIC amount: unknown | T-Bills sellable any time on secondary market; CP timing unknown |
| Arc | Securities (SIPC) | Up to $2.5M FDIC eligibility via sweep (cash); invested funds not FDIC | unknown |
| Rho | Securities (SIPC) | SIPC up to $500K (incl. $250K cash) via Apex / Interactive Brokers; not FDIC. Separate savings: up to $75M FDIC sweep | IJTXX same day before cutoff; T-Bills & other funds 2 business days (3 after cutoff) |
| SVB (First Citizens) | Bank deposit (FDIC) | Standard FDIC ($250K); extended sweep: unknown | Bank deposit (transfer timing per bank) |
| Grasshopper Bank | Bank deposit (FDIC) | FDIC direct; optional ICS sweep for higher coverage (amount per third-party source, unverified) | Bank deposit |
| Relay | Bank deposit (FDIC) | Up to $3M FDIC via Thread Bank sweep | Bank deposit |
| Bluevine | Bank deposit (FDIC) | Up to $3M FDIC via Coastal Community Bank + program banks | Bank deposit, same-day |
| Found | Bank deposit (FDIC) | unknown (not stated on pricing page) | Bank deposit |
| Ramp | Bank deposit (FDIC) | FDIC via IntraFi ICS ('tens of millions' per depositor) | Instant/same-day payments |
| Novo | Bank deposit (FDIC) | Standard FDIC via Middlesex Federal Savings | Bank deposit |
4. Then compare yield
See current startup treasury rates and the full rates table, or a head-to-head: Mercury Treasury vs Brex Treasury · Brex Treasury vs Ramp Investment Account · Rho Treasury vs Mercury Treasury.
5. Write it down
A short treasury policy approved by your board should say what's allowed (insured deposits, government money market funds, T-Bills), limits per institution, the longest maturity, and who can move money.
FAQ
Where should a startup keep its cash after raising?
Most startups split it: enough for near-term payroll and bills in an operating account (FDIC-insured, ideally with a sweep for larger balances), and cash they won't need soon in a treasury product such as a government money market fund or short-term T-Bills. Keep a small account at a second institution as a backup.
How much of a startup's cash is FDIC insured?
FDIC insurance covers $250,000 per depositor, per FDIC-insured bank, for each ownership category. Sweep programs spread deposits across many banks to extend coverage; amounts vary by provider (see the protection column).
Are T-Bills and money market funds FDIC insured?
No. The FDIC lists U.S. Treasury bills among the products it does not insure. Money market funds are securities. At a broker, SIPC protects up to $500,000 including $250,000 cash if the brokerage fails, but not against a decline in value.
Is a money market fund safe for startup cash?
A government money market fund invests in short-term government securities, so it is low risk, but it is not a bank deposit and can lose value. Check the fund, the liquidity terms and the fees before moving cash.
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We keep your email private and use it only for this newsletter. Every issue will have an unsubscribe link.Not financial advice. IdleCash is an independent, informational comparison. We are not a bank, broker or adviser. The comparison table is always sorted purely by the data; sponsorship never changes rank. Yields are variable, quoted as each provider advertises them, and may have changed. Securities products are not FDIC-insured and can lose value. Verify on the provider's site before acting.