How it works
Through one account, your clients can gain seamless deposit access to
hundreds of insured depository institutions providing high insurance levels
and rates once only available to large institutions.
User experience
Advisor
24/7 online access to dashboard of all client
accounts
Discretionary transaction capability
Seamless integration with portfolio/data
aggregators bring client cash into view/
statements
Fulfill fiduciary responsibility in potentially
increasing rate while decreasing client risk
Turnkey marketing and client service support
Client
Simple online account application
Account seamlessly linked to their bank or
brokerage/advisory accounts so they can
move money as often as they like
Will receive one 1099 from the program
custodian
24/7 online access to account information
and transaction capability
Remain anonymous to Program institutions
Begin expanding your practice
Frequently Asked Questions
Product:
Is FICA available to all types of accounts?
It is available to all non-retirement accounts.
Is FICA a sweep account?
No, it is not. It is a custodial deposit account.
How liquid is FICA?
Deposits are allocated same day. Withdrawals are next-day liquid. That means when a client affects a withdrawal prior to the cutoff time day one, they will receive those funds in their linked bank or investment account typically by 10:30 AM the next business day.
Is there a minimum initial deposit required?
Yes, $100K. After the initial deposit requirement has been met, deposit balances, as a result of withdrawals/transfers, may go below the required minimum initial deposit.
What are the advantages of having 1,000 insured depository institutions?
The advantage of having 1,000+ insured depository institutions is rate stability and diversification. Network diversification becomes meaningful when the economy slows because a real percentage of banks reduce or stop funding. A quick way banks reduce their funding is by decreasing the price they are willing to pay for deposits.
In programs with only a few insured depository institutions, if one or more of them reduce the price they are willing to pay or stop taking funding altogether, it can have immediate effect on rate to end clients and may even negatively affect the level of insurance on their cash. Having 1,000+ insured depository institutions that are geographically diverse across the country is better protected and has a built-in hedge against this scenario.
Can my clients opt-out of specific insured depository institutions?
Clients may opt-out of as many insured depository institutions as they wish, for any reason.
Do you have a FICA Impact option?
Yes. FICA Impact is an option within the FICA platform. By choosing this option, clients automatically opt out of all insured depository institutions that don’t fit the impact criteria. These deposits are allocated to underserved communities across all 50 states and goes toward funding new homes, creating jobs, expanding community programs, and growing local tax bases.
Operations:
Can withdrawals be sent directly to my client’s bank and/or investment account?
Yes.
How many 1099’s will my client receive?
One. Clients will only receive a 1099 from the program custodian.
How is interest reported?
Interest is accrued daily and paid monthly.
How does my client check their current balance?
Clients have 24/7 online access. Here they can look up balance information, see current and past statements, effect transactions, see how much of their deposits are being held at each insured depository institution at any time, etc.
Can I view client statements?
Yes. You will have 24/7 access to the advisor dashboard on the advisor.cash portal, which details each of your clients that utilize FICA and provides access to each (clients will grant you access when completing the simple application).
Can my firm white label FICA?
Yes. Please speak to your StoneCastle representative for more details.
Does StoneCastle offer marketing support?
Yes. You receive 100% turnkey marketing, sales, and client support to assist you in creating awareness and reaching clients with tested and proven messaging for emails, letters, and web content.
How often does the rate change? How is it communicated?
The FICA rate is largely tied to the Federal Funds Rate and will generally move in line with Fed rate increases/decreases. Advisors are notified 1-2 business days ahead of any rate change to give you ample time to inform clients, modify communications, website, etc. Once the rate is changed, it will appear on client statements.
How does my client open an account?
A simple, secure online application will be made available only to your clients. You then receive the custom link to the application to put on your website or email directly to your clients. The application takes less than 5 minutes to complete.