About Prime Treasury
Is Prime Treasury a bank account?
- Prime Treasury is not a bank account. Prime Treasury is a treasury management account where you can deposit your business’s idle cash and have it invested in cash, cash equivalents or securities per guidelines set forth in your corporate investment policy.
Where is my money custodied with Prime Treasury?
- Your funds are custodied in your company’s name at our broker-dealer partner, Interactive Brokers, who is amongst the largest custodians in the U.S.
Are my assets pooled with other clients’? Do you invest in ETFs or Money Market funds?
- No. Securities are held directly in your business’s name in your Prime Treasury account and are not pooled with those of other clients (e.g., in ETFs or Money Market Funds). With Prime Treasury, you know exactly what assets you own, and how much you own of each type.
Who has rights to move funds from my Prime Treasury account?
- Funds can only be transferred to a pre-authorized bank account in the name of your company by individuals pre-approved by you. Third-party transfers are not permitted.
What protection do I have on my Prime Treasury assets?
- Your assets are SIPC insured up to $500,000 which includes a $250,000 limit for cash. You have an additional $29.5 million dollars of insurance against default of the custodian through Lloyd's of London at Interactive Brokers.* In the event of any loss of the assets in your brokerage accounts, any applicable insurance policy or policies may not cover all or any portion of such losses, and there is no guarantee that you will receive all or any portion of your invested principal or any returns on your invested principal.
What securities do I hold in my Prime Treasury account?
- The Securities you hold will be determined based on your company's individual investment policy. For the most part, these will be restricted to U.S. Treasuries and U.S. Bank CDs. However, if your companies’ investment policy allows for high-end investment-grade corporate bonds, then those may be held in your account as well.
What happens when I need to withdraw funds from my Prime Treasury account?
- You can withdraw your funds at any time with 24 hours notice, without any fees or penalties. Treasuries are processed in T+1 (one business day), and Bank CDs and IG Corps are processed in T+2 (two business days). Withdrawal requests received before 2pm EST will be processed on the next business day. Requests received after 2pm EST will take an additional business day.
- You can connect your bank account to your Prime Treasury account and set up automatic bank monitoring, which will “push” money to your operating account when the balance drops below a threshold you set.
Do I need to change my bank account to use Prime Treasury?
- We encourage adoption of the Rho checking account for customers of Prime Treasury, to take advantage of the fully-integrated platform and manage your business’s finance stack all in one place. However, we do work with all the banks in the United States, and you can use another bank account if desired, to use Prime Treasury.
Can I get my accountant setup with Prime Treasury?
- Absolutely, you can set your accountant up with a read-only Prime Treasury account.They will be able to access your monthly statements and the other information they need.
Key Terms and Definitions
What is a U.S. Treasury Bill?
- U.S Treasury bills are short-term securities backed by the full faith and credit of the United States government. You can read more about these securities at the U.S. Treasury Department's website here.
What are investment policies, and why does Prime Treasury use them?
- An investment policy is an internal corporate document that outlines how to handle a company’s corporate cash. It lays out the cash requirements, investment strategy & risk tolerance, and includes a list of the allowed and prohibited securities. Rho Prime Treasury uses these as they bring discipline and rigor to corporate cash management and ensure your company and Rho Prime Treasury have the same investment goals in mind.
What is a SEC registered RIA & what does that mean?
- RIA stands for registered investment advisor. Prime Treasury is registered with and regulated by the Securities and Exchange Commission (SEC) and regulated by them. This requires us to have a fiduciary responsibility to our customers and make sure to put their interests first, even above ours.
*Customer securities accounts at Interactive Brokers LLC are protected by the Securities Investor Protection Corporation ("SIPC") for a maximum coverage of $500,000 (with a cash sub-limit of $250,000) and under Interactive Brokers LLC's excess SIPC policy with certain underwriters at Lloyd's of London for up to an additional $30 million (with a cash sub-limit of $900,000) subject to an aggregate limit of $150 million. Futures and options on futures are not covered. As with all securities firms, this coverage provides protection against failure of a broker-dealer, not against loss of market value of securities. Source: https://www.interactivebrokers.com/en/index.php?f=2334&p=acc&conf=am
Investment management and advisory services provided by RBB Treasury LLC, an SEC-registered investment adviser. RBB Treasury LLC facilitates investments in securities: investments are not deposits and are not FDIC Insured • Investments are not guaranteed, and may lose value. Investment products involve risk and past performance does not guarantee future results.
Banking services provided by Evolve Bank & Trust, Member FDIC, and Webster Bank N.A., Member FDIC. Cards issued by Webster Bank, N.A., Member FDIC. All Rights reserved. ©2019-2022 Under Technologies, Inc. DBA Rho Technologies. Rho is a trademark of Under Technologies, Inc. Rho is not a bank. Rho partners with FDIC-insured banks to offer banking products and services.
By using Rho services, you agree to and are bound by the Rho Terms of Service. https://www.rho.co/terms-of-service