Introducing Flourish & An Update On Banking
We are excited to offer Flourish Cash to clients of NorthAvenue. This is an exclusive benefit that allows you to earn more on the cash you keep in checking and savings accounts today. Flourish Cash supports a variety of account types including individual and joint accounts, revocable trusts, businesses, non-profits, partnerships, LLCs and more. Currently, the variable rate on the irst $250,000 of cash for individuals and businesses, and the first $500,000 of cash for joint accounts, is 4.25% APY, with remaining balances earning 3.00%. Other advantages include higher levels of FDIC insurance through multiple Program Banks, no account fees, no minimums, and an unlimited number of transfers. Any money you transfer into your Flourish Cash account will be automatically deposited at select FDIC-member banks, such as PNC Bank and HSBC Bank USA, through a broker-dealer “sweep program.” This means your cash will receive FDIC insurance coverage as if you had deposited that cash directly with those banks, and you can withdraw it whenever you need it. In summary, Flourish Cash gives you an account that provides:
A Competitive Interest Rate.
Keep your cash FDIC Insured: Receive FDIC insurance coverage through our Program Banks of up to $1.25MM for an individual account, $2.5MM for a joint account, and up to $1MM million for a business account.
Easily access your cash: transfer money with just a few clicks whenever you need it with an unlimited number of transfers
Zero minimums, zero account fees: Flourish Cash was built for total flexibility, with no minimums and no account fees–all while taking less than five minutes to sign up
This program is available through invitation by your advisor only. If you have any questions about setting up your account you can feel free to reach out to your team at NorthAvenue directly and we will get you started. Due to the recent announcements of Silicon Valley Bank and Signature Bank closing we also want to share that while Signature Bank was one of the Flourish Cash Program Banks, no client of NorthAvenue had any funds at Signature Bank and there is no impact to NorthAvenue. For non-NorthAvenue clients that did have funds at Signature Bank, Flourish successfully transferred all of their client funds out of Signature Bank on 3/13 and allocated them to other Program Banks. All clients were able to continue to have full access to their funds through Flourish Cash as usual, with no change to the service and the FDIC insurance coverage remained unchanged. Flourish impressed us with their communication and handling of the situation. With the recent news about several bank failures we wanted to take a moment to reassure our clients their investment strategies have been built with these concerns in mind. We use a mixture of government bonds, CDs, and diversified high quality corporate ETFs to build out bond ladders for our clients. For clients in retirement and nearing retirement, the ladders have been built out to provide specific cash flow needs. They mature annually for those needs to minimize the impact of rising interest rates. Our investment team has reassured us there is no direct exposure to Silicon Valley Bank or Signature in client portfolios. However, recent events are demonstrating the importance of FDIC insurance and showing how it works in action. This is a good example of why we strive to utilize government bonds and CDs where possible in retiree client bond ladders, as well as to recommend high quality resources for client emergency fund savings. Please do not hesitate to reach out to us if you have any specific concerns. We are here to help. The NorthAvenue Team