Brex business account risk exposure
Overview
The Brex business account provides customers with a place to bank*, manage operational spend, earn yield through money markets funds, and store funds but with a unique structure that limits your exposure to any individual bank. Even though you can still use a Brex business account for tasks such as bill pay or to send/receive checks, ACHs, and wires, there are some key differences in money storage. *Banking services are only available to customers with Checking, Treasury, and Vault. Brex is a financial technology company, not a bank. Checking accounts and banking services are provided by Column National Association, Member FDIC.
Brex business accounts
Vault service
As part of the Brex business account, Brex leverages its affiliate Brex Treasury, a broker-dealer regulated by FINRA/SEC, to sweep (i.e. move money before the end of the day) customer deposits into FDIC-insured partner banks. This service—known as Vault—provides access to additional FDIC-insurance by sweeping customer deposits across multiple partner banks for up to $6M of coverage. Please chat with us if you have any questions.
Vault program banks
For an overview of our program banks, please refer to our Program Bank List. For more information about Vault, please review your Brex Business Account Terms and the Sweep Disclosure
Treasury service
With Brex’s Treasury Service, funds can also be swept into a money-market mutual fund administered by Bank of New York Mellon ($400B+ bank, AAA-Rated Fund). This fund [see prospectus here] has daily liquidity and is designed for preservation of capital and maintenance of liquidity, and it must hold at least 99.5% of its money in cash or securities backed with the full faith and credit of the US government.
Though there are inherent risks within any financial system, Brex business accounts are designed to offer less exposure than an individual bank due to these qualities:
- 100% of funds in Brex business accounts are always available for withdrawal.
- Brex does not hold customers’ cash on our balance sheet, except for money in transit.
Brex allows you to choose how your money is stored between your checking, vault, or treasury accounts.