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Since 2000, Folio Financial (formerly FOLIOfn) has provided ahead-of-the-curve innovations for advisors through unique custody, brokerage, and FinTech services. Today it serves the needs of more than 450 firms, including traditional advisory firms and broker-dealers, as well as specialty TAMP providers, large financial enterprises, and start-ups like robo advisors and other FinTech firms.

As Folio approaches its 20th year in business, it is taking a moment to reflect on its many “firsts,” including celebrating a dozen years of its distinctive Multi-Bank Cash Investment Vehicle, which was the first of its kind at launch.

“Folio’s Multi-Bank Cash Investment Vehicle offers investors the safety and security of FDIC insurance over greater amounts of cash than any single deposit with a bank could achieve, while providing same day access to funds for investing or withdrawal and tiered interest rates not possible with a mutual fund cash product. The fact that we’ve been offering this investment vehicle for so long and in our unique way not only shows Folio’s ongoing creativity, but our continued commitment to client needs,” said Greg Vigrass, President, Folio Institutional.

Folio automatically pays interest on any cash held in Folio accounts, compounded daily. Interest rates are tiered, so the more cash an investor has with Folio, the more interest he or she earns, and Folio applies the higher tiered rate to all cash across multiple accounts. Cash not invested in securities is automatically included in the cash vehicle swept across the wide array of national and local FDIC-insured banks participating in Folio’s program, which currently offers extended FDIC insurance of up to $4.5 million for individual accounts and $9 million for joint accounts. And, unlike some other cash management vehicles such as CDs, investors enjoy same-day access to their funds, without penalties.

Other unique features and benefits of the cash vehicle enjoyed by clients for the past 12 years include:

  • The ability to exclude any of the banks to which Folio sweeps its cash, due to over-exposure, employer restrictions or personal preferences.
  • The flexibility for advisory firms using the Folio platform to construct different interest tiering, rates, and minimums.
  • A Sharia-compliant, but extended, FDIC insurance cash offering.
  • And soon – an SRI-based cash offering as well.

“The Multi-Bank Cash Investment Vehicle is just one example of how Folio does what’s right for investors and those who serve them,” adds Vigrass. “For example, since our launch, we’ve offered completely paperless, streamlined account opening, bank-link creation and online funding as well as online trade confirmations, statements, performance reporting, tax documents, and proxy voting services.”

 

SOURCE Folio Financial

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