CULVER CITY, Calif.--(BUSINESS WIRE)--Altruist, the modern custodian for RIAs, launches Altruist Cash, its native cash management solution. The announcement comes just weeks after T3 named the company the #1 custodian advisors are considering switching to. The new product, one of the most highly requested features from advisors on the platform, offers end clients 5.10% APY on cash held in Altruist Cash accounts–11x the national average.* The offering bolsters an existing set of features designed to help RIAs drive better outcomes for their clients.
Historically, custodians have resisted offering attractive yields to end clients because interest on cash is a significant source of revenue. As a result, advisors end up pushing clients to third parties in search of better yields. This practice, however, reduces advisor visibility and creates additional administrative work for the client. Under this system, client cash might sit idle, resulting in suboptimal returns. This represents a substantial missed opportunity in a high interest rate environment.
“We heard it from countless advisors: ‘Please offer a high yield cash account,’” says founder and CEO, Jason Wenk. “Now RIAs don’t have to choose between visibility into clients’ entire financial picture and industry-leading APY. Altruist Cash joins a growing list of features that help advisors drive greater impact, including fractional shares, fully-paid lending, and a suite of upcoming tax management features.”
In addition to 5.10% APY, Altruist Cash users get access to FDIC insurance through partner banks—up to $1 million for individual accounts and $2 million for joint accounts—and same day transfers. With no minimum balance requirements, and no setup or subscription fees, Altruist ensures that its products, and the ensuing benefits, are available to all.**
Alongside offering higher yield to their clients, Altruist empowers RIAs with fast and efficient account opening, funding, billing, reporting, trading, and rebalancing. To learn more, advisors can visit altruist.com/cash.
About Altruist
Altruist is the modern custodian for independent RIAs. Altruist combines a self-clearing brokerage firm with intuitive software for account opening, trading, reporting, and billing – all in one streamlined solution. With Altruist, advisors can create custom models, trade fractional shares, automate rebalancing, and share performance with clients using a modern mobile app. Learn more at https://www.altruist.com and follow Altruist on Twitter @altruist.
*The national average interest rate for savings accounts as posted on FDIC.gov, as of February 20, 2024.
**Other fees may apply, see the Altruist Financial LLC Fee Schedule on altruist.com/legal for more information.
The Annual Percentage Yield (“APY”) for the Altruist Cash accounts (“Altruist Cash”) is variable and may change at any time. View our disclosures to learn more.
Altruist Cash is offered through a separate account at Altruist Financial LLC (“Altruist Financial”) that is opened solely for participation in Altruist Cash. Neither Altruist Financial nor any of its affiliates are banks. Altruist Financial deposits cash in the Altruist Cash account with one or more banks ("Program Banks" - see the Altruist Financial LLC Participating Bank List on altruist.com/legal) that accept and maintain such deposits. Through Altruist Cash, clients' cash is deposited into Program Banks where the cash earns a variable interest rate and is eligible for FDIC insurance. Cash is not eligible for FDIC insurance until the cash is deposited at the Program Banks. FDIC insurance is limited to $250,000 per depositor, per FDIC-insured bank, per ownership category and is subject to conditions. More information can be found in the Altruist Cash Disclosure Statement and the Altruist Financial LLC Participating Bank List, both available on altruist.com/legal. FDIC coverage can be impacted by several things, including but not limited to deposit capacity at a Program Bank and/or if a client holds cash at a Program Bank, including through this or additional sweep programs. For more information on FDIC insurance coverage, please visit FDIC.gov.
Clients should carefully review the information provided on altruist.com/legal to determine whether Altruist Cash is an appropriate product for their specific financial needs. Retail clients must work with a Registered Investment Advisor to open an Altruist Cash account.
Altruist Corp ("Altruist") offers technology and tools designed to help financial advisors achieve better outcomes. Advisory and certain other services are provided by Altruist LLC, an SEC-registered investment adviser, and brokerage-related products and services are provided by Altruist Financial LLC, a member of FINRA/SIPC. Nothing in this communication should be construed as an offer, recommendation, or solicitation to buy or sell any security. Additionally, Altruist or its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisors. Clearing and custody of securities provided by Altruist Financial LLC. © 2023 Altruist Corp 3030 S La Cienega Blvd Culver City, CA 90232.
