In this Article…
- Learn the difference between standard and enhanced FDIC insurance for business bank accounts.
- Learn the added benefits of enhanced FDIC insurance for roofing companies.
- And learn how using Truss Payments enables roofing companies to maximize the benefits of enhanced FDIC insurance.
Enhanced FDIC insurance offers a vital safety net for roofing companies and other contractors. This enhanced coverage not only secures larger bank deposits, but also provides peace-of-mind against potential bank failures.
However, it's not just about securing deposits. By leveraging FDIC insurance for roofing companies, you can mitigate financial risks associated with daily operations. Embracing this protection empowers your business to thrive, ensuring that unforeseen banking issues won't derail your hard-earned progress.
In this article we’ll discuss the key benefits of enhanced FDIC insurance for roofing companies and their bank accounts.
Standard FDIC Insurance vs. Enhanced FDIC Insurance
Even if you decide that your roofing business doesn’t need enhanced FDIC insurance, there is still a way to potentially increase your coverage. You can open multiple accounts with different ownership types—such as individual accounts and joint accounts—as each type could be eligible for its own $250,000-worth of coverage.
FDIC Deposit Insurance is a crucial safeguard for depositors in the United States. In 1933, when President Franklin D. Roosevelt signed The Banking Act of 1933 into law, it established the Federal Deposit Insurance Corporation (FDIC).
The FDIC’s primary purpose was to protect bank customers by insuring deposits at member banks. Even today, this insurance secures funds in the event a bank fails, ensuring that depositors do not lose their hard-earned money.
The Biggest Difference: Coverage Limits
With standard FDIC insurance, each depositor is insured up to $250,000 per insured bank, for each account ownership category. A bank must be a member of FDIC for an account to qualify.
With enhanced FDIC insurance, if a bank is a member of FDIC and offers a deposit sweep program, this allows business access to a significant increase in FDIC insurance. When roofing companies use Truss for their business checking, they can access coverage up to $3 million1, ensuring a greater level of financial security.
The coverage limits of standard and enhanced FDIC insurance apply regardless of the size or nature of your business.
The Same Eligible Accounts
Both standard and enhanced FDIC Insurance cover various types of deposits, including:
- Savings accounts
- Checking accounts
- Money market deposit accounts
- Certificates of deposit (commonly known as CDs)
However, not all of these account types are the right choice for a business like a roofing contractor that needs quick access to cash. As we’ll discuss later in this article, Truss offers quick access to funds and enhanced FDIC insurance1–the best of both worlds for roofing companies.
The Benefits of Enhanced FDIC Insurance for Roofing Companies
Go for the max! Use a company like Truss to get maximum insurance coverage of up to $3,000,0001 for your business accounts.
Enhanced FDIC Insurance goes beyond the standard FDIC insurance to offer a robust layer of protection for businesses, particularly roofing companies. These key benefits include:
Maximized coverage via insured cash sweep accounts.
Enhanced FDIC Insurance allows businesses to open multiple accounts across various banks using special programs known as insured cash sweep accounts, such as that provided by Truss and their banking partner Thread Bank. This strategy maximizes coverage for your business.
Mitigated risks thanks to multiple institutions.
Another benefit of insured cash sweep accounts is that they aren’t reliant on one banking institution. If one institution has a problem or fails, you’ll still have access to your funds. It’s a way for roofing companies to not have to be stuck keeping all of their eggs in one basket.
Different types of accounts for different types of allocations.
By being permitted to have multiple accounts, roofing companies can utilize different accounts for operational expenses, project funds, and emergency reserves. Each account can be insured separately up to the $3 million limit, allowing for strategic financial management.
Automatically maintained insured limits.
Deposit sweep networks–a feature of enhanced FDIC insurance–automatically transfer funds between your business accounts and various banks. This process ensures that your deposits remain within the insured limits of the FDIC.
Improved cash flow with managed liquidity.
Using insured cash sweep accounts allows your business to earn interest on your deposits, while also allowing your business quick access to much-needed cash when you need it.
Using Truss Payments to Maximize the Benefits of Enhanced FDIC Insurance for Roofing Companies
Choose a business account provider that offers a full suite of features beyond enhanced FDIC insurance.
While there are many providers of business checking accounts that offer enhanced FDIC insurance, there is no greater partner for roofing companies than Truss Payments.
Truss Payments, in partnership with Thread Bank, offers the following for their business accounts, allowing contractors to maximize the benefits of enhanced FDIC insurance:
The stability of a traditional bank + the innovations of a fintech company
Thread Bank has been a trusted name in the banking industry since 1906. Member FDIC, Thread Bank provides Truss customers with banking services and FDIC insurance coverage of up to $3,000,0001. When you open a business checking account with Truss, your company not only has access to enhanced coverage for qualifying deposits, but it has access to tech innovations like Truss’ digital payments features.
The advantage of multiple accounts with the simplicity of one Truss account
Another benefit for setting up a checking account with Truss is that your money is protected in multiple accounts via Thread, however, you can manage everything in one, simple Truss account. Checking, invoices, and payments–all-in-one.
Credit card-like features–minus the credit dependency–with the Truss Card
A Truss Card2 provides your roofing company with all of the benefits of a regular credit card–expense management, convenience, even rewards–added with the benefits of an enhanced FDIC-insured checking account.
The benefits of a traditional account with quick access to cash
As we mentioned earlier in this article, not all accounts eligible for enhanced FDIC insurance are right for all businesses. This is especially true for roofing companies and other contractors that need quick access to cash, as some accounts such as CDs lock in your money. A Truss business checking account with the backing of Thread Bank offers all the benefits of a traditional account and enhanced FDIC insurance, while also offering instant access to funds.
A company that knows roofing companies
Truss is the all-in-one banking solution dedicated to contractors.
Conclusion
While the typical business bank account offers $250,000 of FDIC insurance protection for your deposits, if you want more peace-of-mind for your roofing company, enhanced FDIC insurance offers greater protection.
To maximize your benefits, choose Truss. Not only will your roofing company’s deposits be eligible for up to $3,000,000 of FDIC insurance through Thread Bank1, Truss offers comprehensive business financial features. With one Truss account you can set up a business Truss Card, send invoices, pay subcontractors, and of course, have a business checking account with enhanced FDIC insurance. Truss really is the all-in-one banking solution for roofing companies.
1Your deposits qualify for up to $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at Thread Bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://thread.bank/sweep-disclosure/ and a list of program banks at https://thread.bank/program-banks/. Please contact customerservice@thread.bank with questions on the sweep program.
2The Truss Visa® Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa cards are accepted.
