StoneCastle's FICA® For Advisors High-Yield Cash Product Moves to No Minimum Initial Deposit to Accommodate Demand from Advisors
Jan 07, 2020, 12:26 ET
NEW YORK, Jan. 7, 2020 /PRNewswire/ -- StoneCastle Cash Management, LLC ("StoneCastle") today announced that it has eliminated the minimum initial deposit within its FICA® For Advisors high-yield cash account. This modification is in response to overwhelming demand by advisors and other wealth managers to make FICA® For Advisors their go-to insured cash vehicle for non-transactional cash.
FICA For Advisors was introduced into the wealth management space as an insured cash program to help advisors attract held-away cash predominantly with high net worth clients just about one year ago. Since then, it has been a steady boon for its now hundreds of advisor clients utilizing it every day. "FICA® has been around as an institutional product for more than ten years," said Kyle McAndrew, Head of Intermediary Sales for StoneCastle. "Advisors love that they now have access to this outstanding product as a solution for their high net worth clients. They also told us they wanted us to make it easier for more of their clients to use it by lowering the initial deposit, which we are happy to accommodate. We decided to lower it to zero to make it as accessible to as many advisors and their clients as possible."
"We have had early success with FICA® and have been able to add measurable value to our clients that hold significant cash balances outside of their investment portfolio," said Jeffrey Graves, President and CEO of First Financial Equity Corporation. "FICA® has helped our clients increase yield while fully insuring all of their cash, thereby reducing risk on these large balances. Moving to no minimum is ideal in getting these accounts set up especially in advance of client liquidity events, like an inheritance or the sale of a business, which is commonplace with our clientele."
An Independent Solution
FICA® For Advisors is a high-yield cash solution that offers up to $100 million in federal insurance per tax ID, an APY currently 18X the national average* and is liquid. The high insurance limits are made possible through StoneCastle's 800+ bank network, which has been serving the needs of institutional depositors, family offices, and Fortune 500 companies for more than a decade. StoneCastle has taken this institutional expertise and created an independent cash platform for FICA® that is Made for the RIASM.
StoneCastle refers to FICA® as the only truly independent cash program in the market today, which is a message that resonates with advisors and other wealth managers. "We've looked at other cash accounts that claim to be independent, but with FICA® For Advisors, our clients don't have to open a separate brokerage or savings account with institutions that have affiliated wealth management businesses in order to gain access to higher cash rates," added Graves. "And candidly, the pound-for-pound value of FICA's yield, liquidity, and high insurance level is tough to beat."
In a market environment where cash balances are steadily increasing, especially in the high and ultra-high-net worth client segments, advisors that are not speaking to clients about cash are at risk of losing it to those that are. "Advisors are enthusiastic about sharing this solution with all of their clients. We were equally enthusiastic in lowering the minimum to help them reach more of their clients and open the spigot for qualified referrals that help them grow their businesses," concluded McAndrew.
*FDIC.gov as of January 6, 2020. Yield is applicable on balances up to $25 million. Please call 833.342.2274 for the most current yield and maximum deposit insurance coverage. FICA® yield is the net yield to clients based on APY for the period indicated as reported by StoneCastle. Past performance does not guarantee future results.
About StoneCastle Cash Management, LLC
Since 2009 StoneCastle Cash Management, LLC is recognized as the leading administrator of insured cash solutions for many of the world's largest institutions, family offices, RIAs, broker-dealers, municipalities, colleges and universities, and endowments and foundations. StoneCastle is backed by the strength and stability of world class partners, Charlesbank Capital Partners, and Canadian Imperial Bank of Commerce (CIBC).
SOURCE StoneCastle Cash Management, LLC
