How Billy’s deposited cash earned a 4.40% annual percentage yield (APY)* while staying accessible

Billy needed to protect and grow their investor funds without losing access to them

Melanie Arnold, VP of Finance at Billy, needed a solution to manage the company’s cash in a way that didn’t conflict with its goals. Startups of all sizes often face a similar dilemma: Melanie wanted to preserve investors’ capital infusions and combat inflationary pressures while efficiently managing Billy’s checking accounts.

At the time, Billy’s cash was deposited in a checking account that provided no interest. The earnings on its treasury account couldn’t keep up with inflation, and Melanie didn’t want the value of Billy’s hard-won capital raise to melt away. Another frustration? Accessing their funds in U.S. Treasury bills took four to five business days.

Melanie looked into other banking options but found that most could only achieve one of her objectives while neglecting the others:

• Locking up the cash in U.S. Treasury ladders would be safe, but Billy needed that cash to stay deployable to pay for business and growth initiatives
• Opening multiple high-interest checking accounts or money market accounts would require many logins, dashboards, and transfers, complicating the team’s daily work
• Keeping the cash in one bank account left it under-insured

Crescent offered Billy a higher interest rate than most banks that was combined with more FDIC insurance coverage, and improved treasury control

Melanie started researching how Crescent Cash accounts work. She was immediately interested in the ability to obtain access to millions of dollars in FDIC insurance by using one of Crescent’s sponsor bank’s deposit broker, IntraFI, to place funds in excess of the standard maximum insured amount in a network of FDIC-insured banks and savings associations.

She then visited one of Crescent’s sponsor banks and gained confidence in the team. “I even looked up the banking charter just to make sure everything was cool,” Melanie laughs. “I so appreciated the active involvement of the Crescent team and their willingness to put me in touch with their bank partner to verify everything.”

According to Melanie, onboarding with Crescent was painless and fast and Billy’s finance function continued uninterrupted. The quick switch de-risked Billy’s cash, earning it interest safely right away.

Now, Billy’s balance is reflected in one main operating account, giving Billy easy access to their funds while obtaining many more millions of dollars of FDIC insurance. The cash for payroll and other immediate expenses became available without exceeding the standard $250,000 insurance limit of any one bank. As a startup leader, Melanie appreciates that level of agility and protection.

Crescent’s initial 4.40% APY outpaced the rate of inflation reported by the federal government— Melanie’s main priority — and the new setup significantly simplifies her daily tasks. Her Crescent dashboard now serves as both a treasury management tool and an operating account, consolidating Billy’s key banking information onto one simple page.

Melanie looked into other banking options but found that most could only achieve one of her objectives while neglecting the others:

• Locking up the cash in U.S. Treasury ladders would be safe, but Billy needed that cash to stay deployable to pay for business and growth initiatives
• Opening multiple high-interest checking accounts or money market accounts would require many logins, dashboards, and transfers, complicating the team’s daily work
• Keeping the cash in one bank account left it under-insured