Keeping your money secure is our top priority at Relay, and we’re excited to provide added protection to our customers.
Relay and our primary partner bank, Thread Bank, are offering an insured cash sweep program, increasing FDIC insurance to cover up to $2,000,000 in deposits per business.
This F.A.Q. addresses questions you may have about the insured cash sweep program, including how it works and how you can opt in. If you have any additional questions, please send them to our Customer Support Team at email@example.com.
What is the FDIC and FDIC insurance?
- The Federal Deposit Insurance Corporation (FDIC) is a US government corporation that provides insurance to depositors within American banks. The FDIC exists to protect depositors and their funds in the rare scenario of a bank’s closure.
- If a bank closes, the FDIC makes sure each depositor receives the money covered by insurance while also trying to recover the money in excess of the insured amount.
- FDIC insurance covers up to $250,00 in deposits per business at each FDIC-insured banking institution.
What is Relay’s relationship with Thread Bank?
- Relay is a banking technology company and does not directly handle customer deposits; we use chartered partner banks to provide banking services. Thread Bank is our primary partner bank.
- Thread Bank holds deposits for customers on Relay 2.0. This includes all customers registered as of January 1, 2023 and Relay 1.0 customers invited to upgrade to Relay 2.0. You can read more about Relay 2.0 here.
- Thread Bank is FDIC-insured. Each customer with a Thread Bank account is insured up to $250,000 by default.
- See here for more detail on Thread Bank and their financial standing.
Is Thread bank offering expanded FDIC insurance coverage?
- Yes, the Thread Bank Deposit Sweep Program is an insured cash sweep program that maximizes depositor insurance through the FDIC.
- Relay customers that opt into the Thread Bank Deposit Sweep Program can increase their deposit insurance coverage from $250,000 to $2,000,000.
What is an insured cash sweep program?
- It’s a program offered by FDIC-insured banks. Deposits that exceed FDIC insurance coverage are swept into one or more FDIC-insured banks as a way to insure the entirety of a depositor’s balance.
- Insured cash sweep programs exist to protect depositors and their money by maximizing FDIC insurance and by limiting deposit exposure across a single bank.
What is the Thread Bank Deposit Sweep Program?
- The Thread Bank Deposit Sweep Program maximizes deposit insurance for Relay customers by sweeping funds that exceed $250,000 out of Thread Bank and into one or more FDIC-insured banks in its sweep program network.
- Each account opened will hold a balance of $250,000 or less, and will be completely insured by the FDIC.
What banks are in Thread Bank’s Sweep Program network?
Who is eligible for Thread Bank’s Sweep Program network?
- Customers banking on Relay 2.0. This includes all customers registered as of January 1, 2023 and Relay 1.0 customers invited to upgrade to Relay 2.0. You can read more about Relay 2.0 here.
Is the Thread Bank Deposit Sweep Program mandatory for all Relay 2.0 customers?
- Relay 2.0 customers need to email firstname.lastname@example.org to opt in to the sweep program.
- From there, we’ll introduce you to a member of Thread Bank’s team who will set up the sweep program with you.
How do I opt into the Thread Bank Deposit Sweep Program?
- Please email email@example.com to opt-in to the sweep program. From there, we’ll introduce you to a member of Thread Bank’s team who will set up the sweep program with you.
- We’re on working on improvements to the opt-in process so that you will not be required to directly communicate with Thread Bank during program setup (we expect this to be ready later in 2023).
If I opt into the Thread Bank Deposit Sweep Program, do I have to open bank accounts at the banks in Thread’s program network?
- Thread Bank uses a platform called IntraFi to open and manage the accounts at program banks.
- From there, Thread will manage the relationship with program banks and move money between accounts, for you, at your request.
- You’ll soon be able to see balances in all of your program network accounts. In the interim, a member of Thread Bank’s team will be able to provide this information to you.
Will my Relay balance include the money moved to a program network bank?
- Your Relay balance will only reflect what is in the Thread Bank account linked to your Relay account. Money moved to banks in Thread’s program network will not be displayed within your Relay dashboard.
- We are working on a solution to provide more visibility into the balance that each program bank holds. Currently, Relay users who opt in to Thread Bank’s sweep program will work directly with agents at Thread Bank for statements on their holdings.
- You will have full control over how much money you keep in Relay and how much is moved to program banks. You can request that Thread wire money from a program bank into your Relay account at any time.
Will the Thread Bank Deposit Sweep Program impact how I transact in and out of Relay?
- No! All your deposits, payments and card transactions will still be managed by and within your Relay account as normal.
- You will not be able to transact (i.e. deposit payments, send payments or make card purchases) using accounts opened for you within program banks.
How can I move money from a program bank account back to my Relay account?
- Your designated point of contact at Thread Bank (you’ll meet them after opting into the sweep program) will move money, for you, at your request.
- Your contact at Thread Bank will initiate wires between accounts on your behalf.
Will I have a different monthly statement for each program bank account?
- You will have one monthly statement from Thread Bank that includes the deposits spread across program bank accounts. This can be emailed to you at your request.
I’m still on Relay 1.0 and my deposits are in Evolve Bank & Trust. Am I eligible for the Sweep Progam?
- You can upgrade to Relay 2.0 to access the Thread Bank Deposit Sweep Program. Please let our Customer Support team know, at firstname.lastname@example.org, that you would like to begin your Relay 2.0.
- Please note that your deposits in Relay 1.0 are held in Evolve Bank & Trust, which is an FDIC-insured bank; your Relay 1.0 balance is covered by FDIC insurance up to $250,000.