$50m in FDIC insurance now available for Mayfair cash accounts
2023 has been an unusually challenging year for any business looking to safely store large amounts of cash. Headlines of bank collapses, from the troubled Silicon Valley and Signature banks to the drawn-out drama of First Republic Bank's failure, make the once seemingly safe choice of placing your firm's cash at a single bank a risky one.
Money market funds, known for their perceived safety and attractive yields, received a significant blow from the SEC when new rules opened the gate for uncapped fees during periods of increased volatility—meaning value loss when you'd need your cash most.
Put simply, there's never been a greater need for our latest offering: $50m in enhanced deposit protection for select, high-yield cash accounts.
Partnering with Third Coast Bank, Mayfair now offers our customers a cash account with an industry-leading yield of 4.42% APY* while enjoying enhanced FDIC insurance access for up to $50m in funds. The last six months have validated our founding thesis that the most important aspects for businesses when it comes to cash management are security and liquidity, and this offering provides that to countless firms who can't afford their own treasury management teams or simply want to focus on their core business proposition.
Here's how it works: every bank account comes insured with up to $250k in FDIC insurance. With Third Coast Bank, Mayfair gives you access to a "sweep" program that places funds above the $250k qualifying amount at additional qualifying accounts in a network of partner banks for increased aggregate FDIC insurance capacity. This model has been in practice for years if you were a high-net worth individual or sophisticated firm, and you knew how to make it happen. With Mayfair, this technique is available for every firm—and without having to open and manage the individual accounts across 200 partner banks.
The result is a seamless cash management system that can be operated from one place—your Mayfair dashboard—while leveraging the power of many partner banks to provide you with extensive FDIC insurance to protect your funds. It's a strong addition to our core offering that fits our tenets for financial product design: low risk, high yield, great liquidity, and operational simplicity.
*For more information on the current annual percentage yield (APY) for Mayfair’s cash account products, please visit getmayfair.com and read our disclaimers and terms of service.
