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> Those old stodgy banks just slow us down with their old-fashioned risk-averse ways! The cool kids can do it better! SVB was an old stodgy banks that companie
by sailingparrot 4y ago
> Those old stodgy banks just slow us down with their old-fashioned risk-averse ways! The cool kids can do it better!
SVB was an old stodgy banks that companies went to instead of the new kids like Mercury, specifically because of the trust. They have terrible UX and mobile app but at least they were solid and had a 40 year track record.
- sylvainkalache 4y agoSpeaking of Mercury, they recently announced increasing customers FDIC insurance maximum to $1M for customer accepting to enroll in their sweep program. Not sure SVB offers this but I hope they do.
- xxpor 4y agoHow can they do that? They don't choose FDIC limits.
- dismalpedigree 4y agoMercury is not a bank. It keeps your funds spread across many banks where they open accounts on your behalf. Then they spread the deposits around to stay below the $250k threshold at each bank. Same as Fidelity and many others. I would be shocked if SVB was sweeping deposit funds into other banks.
- iozero 4y agoI've heard from a few people today who have Cash Sweep Accounts at SVB: https://www.svb.com/liquidity-management/deposits-and-investments/svb-cash-sweep https://www.svb.com/liquidity-management/deposits-and-invest... Some claim that these accounts are insured/protected up to $125m, but I can't find any info online to corroborate that.
- dismalpedigree 4y agoThis surprises me. I wonder what the mechanism and incentives are for a bank to sweep deposits to another bank.