Secure Your Business Deposits Beyond FDIC Limit: A Comprehensive Guide

Banks don’t fail often. But when they do, it’s often a domino effect—and the official FDIC insurance only goes up to $250k. Which means that if you’ve got more than $250k deposited and your bank fails, you could be at a loss. So what can you do about it?

The Team
March 14, 2023

The good news is that there are several strategies you can use to safeguard your deposits, and none of them involve opening 50 bank accounts or hiding your short-term payroll under the mattress. In this post, we'll look at four of them: MaxSafe, sweep accounts, short-term treasuries, and InfraFi, and help you decide which works best for your business. 

MaxSafe: Diversify Your Deposits

MaxSafe is a deposit placement service that enables you to place large deposits at multiple banks while staying within the FDIC insurance limits. They divide your deposits into smaller increments and place them in several banks, while giving you easy access to them. By doing this, they ensure that each deposit remains below the FDIC limit, securing your funds against bank failure.

MaxSafe also offers competitive returns, the service continually scans the market to find the best interest rates on offer from partner banks and then allocates deposits to those banks accordingly. MaxSafe's interest rates are usually higher than what most traditional banks offer, which can lead to higher returns on cash balances for users.

What makes MaxSafe especially useful for small businesses is its simple to access and use online platform where users can manage their accounts, track their deposits, and view their balances in real-time. The platform is secure and user-friendly, making it easy for clients to keep up with their accounts and track their returns. The company also provides customers with a comprehensive overview of their portfolio, including the interest rate for each account and the total amount of FDIC insurance coverage.

Finally, MaxSafe provides a range of other features such as easy account opening, quick deposit transfers, and simple withdrawal options. This makes it an efficient and hassle-free way for businesses to manage their deposits and earn returns on their cash holdings.

Sweep Accounts: Automate Your Deposits

Sweep accounts are a financial service that allows individuals and businesses to automate their deposits by automatically transferring excess funds from a checking account to a higher-yielding investment account. This investment account could be a money market account or a short-term certificate of deposit (CD). The purpose of the sweep account is to keep the amount of money in the checking account within a certain range or threshold, reducing the risk of overdrafts and maximizing the returns on excess funds. 

They work by automatically transferring any excess cash beyond a pre-determined threshold from the checking account to the investment account at the end of each business day. The investment account typically offers a higher interest rate than the checking account, allowing the account holder to earn more money on their deposits while still maintaining FDIC insurance coverage.

These programs can be a convenient way for businesses to automate their cash management and maximize their returns on excess funds. They provide a hassle-free solution for businesses that want to ensure they are earning the highest interest rate possible on their cash balances while keeping their funds within the FDIC insurance limits.

Sweep accounts also offer flexibility in terms of the investment account's maturity and interest rate. For example, if the account holder anticipates needing the funds in the near future, they may choose a money market account, which typically provides higher liquidity than a CD. Conversely, if the account holder is willing to lock up their funds for a longer period, they may choose a short-term CD that offers a higher interest rate.

While these can be a great option, it’s important to note that they may come with maintenance, transaction and overdraft fees. These fees can vary depending on the account's balance, the investment account chosen, and the terms of the agreement with the bank. Therefore, it's essential to research and compare different options to find the best sweep account that suits your business's needs.

Short-term Treasuries: Invest in Safe Debt Securities

Short-term treasuries are a type of low-risk debt security issued by the U.S. government with a maturity of one year or less. They are commonly referred to as T-bills and are sold in denominations ranging from $1,000 to $5 million. Short-term treasuries are considered one of the safest investments available in the market due to the U.S. government's backing and their low volatility.

One of the significant benefits of investing in short-term treasuries is that they offer a low-risk way to earn returns on cash reserves. The interest rates on T-bills are generally higher than the interest rates on savings accounts or certificates of deposit (CDs). Moreover, short-term treasuries provide an excellent option for businesses looking to protect their cash balances above and beyond the FDIC insurance limits. While they are not as liquid as cash, their short duration allows them to be turned into cash much more easily than other types of investments. They can also act as temporary storage for operational funds to keep your cash balances below FDIC limits. 

Another advantage of short-term treasuries is that they are easily accessible to individual and institutional investors. They can be purchased directly from the U.S. Treasury Department through an online account or a bank, making them a convenient option for businesses.

One potential drawback of short-term treasuries is that their returns are relatively low compared to other types of investments, such as stocks or mutual funds. Moreover, if the Treasury sells T-bills at a higher rate, the value of previously purchased T-bills may decrease in the secondary market, resulting in a capital loss. Finally, managing your treasury using T-bills can be more complicated than sweep accounts or MaxSafe.

InfraFi: Utilize a Comprehensive Cash Management Platform

InfraFi is a financial technology company that offers a comprehensive cash management platform for businesses. The platform allows businesses to consolidate their cash balances into a single account, enabling them to earn competitive interest rates on their deposits while ensuring that each deposit is insured by the FDIC up to the $250,000 limit.

One of the major advantages of InfraFi is that it offers a turnkey solution for businesses looking to manage their cash balances across multiple accounts. The platform enables businesses to place deposits with multiple banks, diversifying their deposits while still maintaining FDIC insurance coverage on each. This feature helps to minimize the risk of bank failure and provides greater security for businesses' cash reserves.

InfraFi also offers competitive interest rates on deposits, ensuring that businesses earn a higher rate of return on their cash balances. Businesses using the platform can access their deposits at any time, making it easy for them to withdraw or transfer their funds for operational expenses.

InfraFi also provides a range of other features including payment processing, fraud protection, and cash flow forecasting. This allows businesses to manage their cash more efficiently and make better-informed decisions about their cash management strategies.

Like MaxSage, InfraFi has a user-friendly online platform where customers can manage their accounts, view their balances, and track their returns in real-time. The platform is secure, intuitive, and easy-to-use, making it an excellent option for businesses looking to streamline their cash management processes.

Comparison of Methods

All four methods offer ways to secure your deposits beyond the FDIC limit. MaxSafe and InfraFi are similar in that they allow you to place deposits with multiple banks, diversifying your deposits to stay within the insurance limits. However, MaxSafe focuses solely on deposit placement, while InfraFi offers a complete cash management platform with additional features such as payment processing and fraud protection.

Sweep accounts are convenient and automated, but they may not provide the same level of diversification as MaxSafe and InfraFi. They also do not offer the same degree of security as short-term treasuries. Short-term treasuries are considered one of the safest investments, but they may not be as accessible as the other options.


To safeguard your business deposits beyond the FDIC limit, consider MaxSafe, sweep accounts, short-term treasuries, and InfraFi. MaxSafe and InfraFi offer diversification and competitive interest rates, while sweep accounts automate the process of transferring excess funds. Short-term treasuries provide a secure way to earn returns, but may not be as accessible as the other methods. Consulting with a financial advisor can help you determine which option is best for your business.

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