Beyond $250K: How to Protect Your Business Deposits with FDIC Sweep Accounts

A surprising number of finance teams still operate under the assumption that their business deposits are “safe” as long as they’re in a reputable bank. But the reality, as the Silicon Valley Bank collapse reminded everyone, is that deposit security stops at $250,000—unless you’ve taken steps to diversify.

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If your business routinely keeps more than $250K in a single account, you're exposed. And spreading funds across multiple banks manually is a logistical headache most teams don’t have time for. That’s where FDIC sweep networks—specifically Insured Cash Sweep (ICS) programs like Centime Banking* —come into play.

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Why $250K Isn't Enough Anymore

The FDIC insures up to $250,000 per depositor, per insured bank, per ownership category. That’s the hard cap. If your company keeps $3 million at one bank and that bank fails, you could be left chasing $2.75 million in recovery through bankruptcy proceedings. Not ideal.

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And while the SVB event was extreme, the underlying risk isn’t. CFOs are increasingly rethinking deposit strategy, not just for risk mitigation, but to ensure liquidity and yield. In fact, 3 out of 4 CFOs now say they’re actively looking to diversify their deposits across institutions.

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How ICS (Insured Cash Sweep) Accounts Work

ICS accounts like Centime Banking* are designed to solve the “too much cash, too little coverage” problem. Instead of opening 15 different bank accounts, an ICS provider automatically distributes your funds across a network of thousands of FDIC-insured banks. Each individual placement stays under the $250K FDIC limit, giving you multi-million-dollar coverage with just one banking relationship.

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For example, if your business deposits $5 million, the ICS system might allocate $250K to each of 20 different banks, all behind the scenes. You still interact with one platform. You still receive one statement. But now you’re insured on the full $5 million, not just $250K.

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It’s treasury-level protection—without the operational complexity.

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Who Needs FDIC Sweep Coverage?

This isn’t just for VCs and late-stage startups. Here are a few examples of when FDIC sweeps make sense:

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Construction and real estate firms holding client funds before disbursement
Professional services companies that bill large retainers quarterly
Manufacturers or importers who keep operating reserves for high working capital needs
PE or portfolio-holding companies that want to centralize cash but stay insured
Finance teams managing a $2–10M cash position and facing board scrutiny around treasury policy

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If your average operating balance exceeds $250K, you're a candidate. Especially if you're trying to avoid the administrative burden of opening and managing 5–10 separate banking relationships.

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The Liquidity Tradeoff That Doesn’t Have to Be

One of the biggest objections to moving funds out of traditional banks is the assumption that you’ll sacrifice liquidity. With ICS accounts, you don’t. Unlike T-bills or money market funds, your cash isn’t tied up. You can move it freely, make payments, and access balances with no waiting period.

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In other words, you don’t have to choose between yield, insurance, and access—you can have all three.

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Where Centime Fits

If you’re looking for a modern, high-yield business checking account that includes FDIC sweep coverage up to $150 million, that’s where Centime Checking Plus* comes in.

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Through our partnership with FNBO, your deposits over $250K are automatically diversified across thousands of FDIC-insured banks, without you having to lift a finger. You also earn 3.0% APY^††, which is more than 10x the national average of 0.08%—and still maintain same-day liquidity.

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It’s not just a checking account. It’s a treasury tool.

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TL;DR – What to Look For in a Business Checking Account Over $250K:

✅ FDIC coverage beyond $250K
✅ Access to an ICS or similar sweep network
✅ Liquidity (no lockups like T-bills)
✅ Competitive APY
✅ Consolidated dashboard and statements

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If you’re managing cash for a mid-sized business and still relying on traditional accounts, it’s time to reframe your expectations. Your checking account should work harder—and keep your funds safe while doing it.

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Want to see how much you could earn while staying fully insured?
Explore Centime Banking* or book a demo today.

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**Deposit placement through ICS is subject to the terms, conditions, and disclosures in the applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through ICS satisfies any restrictions on its deposits. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. The depositor may exclude banks from eligibility to receive its funds. IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC.

^††3.0% Annual Percentage Yield (APY) as of 01/07/25. Deposit rate may adjust to current market rate and may change daily. Fees may reduce earnings.

*Centime is not a bank and is not authorized by any federal or state agency to engage directly in core banking activities.
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*All banking products and services available through Centime are provided by FNBO and are governed by the applicable agreements and related disclosures provided to you by FNBO. Member FDIC.
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‍*While Centime facilitates traditional banking activities (such as the acceptance of deposits or extensions of credit), these services are actually provided by our banking partner, FNBO.
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*Centime may provide support services to FNBO, as permitted by applicable law, to facilitate the delivery of its bank products and services.

**Deposit placement through ICS is subject to the terms, conditions, and disclosures in the applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through ICS satisfies any restrictions on its deposits. A list identifying IntraFi network bank

Beyond $250K: How to Protect Your Business Deposits with FDIC Sweep Accounts

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