Thread Bank's insured cash sweep program increases FDIC insurance to cover up to $2,500,000 in deposits per business. The insured cash sweep program automatically moves deposits over $250,000—the standard amount insured by one FDIC-insured bank—into one or more FDIC-insured banks.
Our customers will maintain complete and instant liquidity to their entire Relay balance, even when funds have been swept into program network banks. For you, nothing about how you transact or access your money will change.
The program is offered and managed by our primary partner bank, Thread Bank, and is therefore only available to customers on Relay 2.0. Relay 2.0 customers are those who have been invited to upgrade to 2.0 or signed up for a Relay account on or after January 1, 2023.
Table of Contents
How does the Sweep Program work?
Thread Bank has a network of FDIC-insured banks, and they use a service called IntraFi to open accounts at program network banks on behalf of Relay customers. Your deposits in excess of $250,000 (the standard amount covered by individual FDIC-insured banks) are automatically swept into accounts at program network banks. Each program network bank will hold up to $250,000. The sweep program provides protection in two ways: maximizing FDIC insurance up to $2,500,000 per business by spreading funds across multiple FDIC-insured bank accounts and limiting deposit exposure across a single bank.
The program doesn’t change anything for you (other than improve insurance coverage):
- 100% of funds in Relay checking and savings accounts are always and instantly available. When you log into Relay you will see the total amount kept in Thread Bank AND program network banks.
- You will also be able to transact as normal because you’ll have instant and full liquidity—i.e. access to your entire balance when sending money or using debit cards/not just the $250,000 kept in Thread Bank.
How can I opt in or out of the sweep program?
All customers are automatically opted-in to the sweep program, but you can opt out of the program—or a specific program network bank—by emailing us at email@example.com.
Who is eligible for Thread Bank’s Sweep Program network?
- All 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.
What about customers on Relay 1.0?
- Deposits in Relay 1.0 are held in Evolve Bank & Trust, which is an FDIC-insured bank; Relay 1.0 balance is covered by FDIC insurance up to $250,000.
- Customers will have to upgrade and move all funds to Relay 2.0 in order to take advantage of the sweep program. If you would like to upgrade to Relay 2.0 please reach out to our Support Team.
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 $250,000 in deposits per business at each FDIC-insured banking institution.
Are deposits held in Thread Bank FDIC-insured?
- Yes. By default, Relay customer deposits held in Thread Bank have been FDIC-insured up to $250,000. Thread Bank is able to increase coverage to $2,500,000 through the sweep program and spreading our customers' deposits into multiple FDIC-insured banks and providing full and instant liquiquidity to each customer's entire balance.
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.
- See here for more detail on Thread Bank and their financial standing.
What banks are in Thread Bank’s Sweep Program network?
- You can see the full list of Thread Bank’s Sweep Program network here.
Will I have a different monthly statement for each program bank account?
- You will have one monthly statement from Relay/Thread Bank that includes the deposits spread across program bank accounts. This will be available for download in Relay.
Do I have to open bank accounts at the banks in Thread’s program network?
- No. Thread Bank uses a platform called IntraFi to open and manage the accounts at program network banks. Our customers will not have access to program network banks or need to log into these accounts.
Can I choose which program banks my deposits are moved to?
- You can opt-out of any bank in the program network by emailing us at firstname.lastname@example.org.
Will I be able to see which program network banks hold my deposits?
- Not at this time. Relay customers will not have a direct relationship with program network banks, but you can email us at email@example.com and we'll provide you with a list of program network banks that are holding your funds.
Does the sweep program impact bank feed integrations?
- No! Bank feed integrations will not be impacted. All transactions will still sync from Relay to the accounting software, not program network banks.
- Relay balances will not change, reflecting the entirety of their Thread Bank and program network banks balances, so account reconciliation will not be impacted either.
How will the sweep program impact my balance in Relay?
- It won’t. Our customers will maintain access to their entire balance in Relay. When you log into Relay you will see the total amount kept in Thread Bank AND program network banks.
- You will be able to transact as normal because you'll have instant and full liquidity.
Will the sweep program impact how I transact in and out of Relay?
- No! All deposits, payments and card transactions will still be managed by and within Relay as normal.
- You will be able to transact up to your full balance, including funds in excess of $250,000, because of the way Thread Bank has implemented the program.
What happens if I have more than $2,500,000 in Relay?
- Deposits over $2,500,000 will be moved into Truist Bank, the recent combination of SunTrust and BB&T Banks. It is the ~7th largest bank in the US by assets.