Flourish Cash is a service offered by Stone Ridge Securities LLC, a registered broker-dealer and FINRA member. Please be aware that Gordon Asset Management, LLC is not affiliated with Stone Ridge Securities LLC and will not provide any advisory or brokerage services for your Flourish Cash account or have the authority to provide instructions on your account. Gordon Asset Management, LLC does not receive a fee for this service.
A Flourish Cash account is a brokerage account offered by Stone Ridge Securities LLC. 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 Stone Ridge Securities LLC (“Program Banks”). The accounts at Program Banks will pay a variable rate of interest.
*The Annual Percentage Yield (APY) is variable and may change at any time. The rate of interest paid by each Program Bank to Flourish Cash customers may be lower than the rate that could be earned by a customer opening a deposit account directly with such bank. The Annual Percentage Yield (APY) for Flourish Cash effective as of 12/20/2018 was 2.30%:https://www.flourish.com/learn, 2/26/19 . The rate of interest paid by each Program Bank to Flourish Cash customers may be lower than the rate that could be earned by a customer opening a deposit account directly with such bank. The national savings account average APY was 0.09% as per the Federal Deposit Insurance Corporation, National Rate on Non-Jumbo Deposits (less than $100,000): Savings [SAVNRNJ], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/SAVNRNJ, 1/23/2019.
**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. There are currently 8 Program Banks available to accept deposits, making customers eligible for up to $2,000,000 of FDIC insurance for individual accounts ($250,000 for each of the 8 Program Banks) and up to $4,000,000 of FDIC insurance for joint accounts with two owners ($500,000 for each of the 8 Program Banks). If the number of Program Banks decreases for a customer (either because a Program Bank is no longer participating in Flourish Cash or because a customer opts out of having their cash swept to a particular Program Bank), the amount of FDIC insurance for which the customer would be eligible through Flourish Cash would be lower. Typically, all of a customer’s deposits at a Program Bank (including deposits held outside Flourish Cash) count toward the FDIC insurance limit for deposits at that Program Bank. Customers are responsible for monitoring whether they maintain deposits at a Program Bank outside of Flourish Cash and should consider opting out of having their cash swept to any such Program Bank to avoid exceeding FDIC insurance limits. If a customer has deposits at a Program Bank outside of Flourish Cash and does not opt out of having their cash swept to such Program Bank, that customer could have funds swept to the Program Bank in an amount above the applicable FDIC insurance limit, and such funds above that limit would not be eligible for FDIC insurance. Although Flourish Cash is offered through a brokerage account and cash held in brokerage accounts often has the benefit of SIPC protection, until such time as we offer securities products, customers likely will not have the benefit of SIPC protection for cash held in their Flourish Cash account. Further, SIPC protection is not available for any cash held at the Program Banks.
The total FDIC coverage for a two-person household is calculated assuming that each household member has an individual account and that both household members share a joint account. Each individual account is eligible for FDIC insurance of up to $2,000,000 and the joint account is eligible for FDIC insurance of up to $4,000,000, so the total FDIC insurance eligibility of the two-person household is $8,000,000 based on 8 current Program Banks.
The above balance and earnings projections are hypothetical only and provided solely as information which should be carefully weighed and evaluated. No representation is being made that the hypothetical results shown here will work effectively on a prospective basis. It is not guaranteed that any of the investment recommendations or projections made here will be profitable or provide any given level of income in the future.