Startup banking for founders who'd rather be building

Frequently asked questions about banking for startups

• What should a startup look for in a banking platform?

  Banking for startups is less about a single account and more about the whole stack: where cash sits, how it's protected, how spend is controlled, and how everything reconciles. Look for four things: a platform that combines business checking, corporate cards, expense management, and treasury in one system; no ACH fees; deposit protection you understand (which chartered bank holds your money, and how much coverage each product carries); and human support that answers fast when something stalls.

  Rho brings all of this together in one platform: checking, cards, expense management, AP automation, and treasury, with support response times under a minute, savings eligible for up to $75M in FDIC insurance through a partner-bank sweep network, and direct syncs to QuickBooks, NetSuite, and Sage.

• Can I open a Rho business account before my EIN arrives?

  Yes, subject to approval. Your Rho business account application can open in the same flow as incorporation, but funds cannot move until the IRS issues your EIN and it attaches to your account. Your SS-4 (EIN application) is prepared and submitted for you when you incorporate with Rho.

• What's the difference between a fintech and a bank?

  A bank holds a charter and your deposits directly. A fintech builds the software layer (the app, cards, payments, integrations) and partners with a chartered bank to hold deposits. You generally get better software from the fintech and the same deposit insurance through the partner bank.

• Does a seed-stage startup need more than $250,000 in FDIC coverage?

  If your raise exceeds $250,000, and most do, then yes, on day one. FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category. Sweep-network products close the gap by spreading deposits across many insured institutions automatically; capacity varies by platform and by product (checking vs savings vs treasury), so check the per-product limits, not the marketing headline. Rho savings, for example, is eligible for coverage well beyond the standard limit through a 400+ bank sweep network, while its checking, like every platform's, carries the standard limit at the bank that holds it.

• Do Rho corporate cards require a personal guarantee?

  No. Rho corporate cards are underwritten to the business with no personal guarantee, so a founder's personal credit doesn't backstop company spend. Traditional small-business cards typically still require one, which is worth checking before you apply anywhere.

• When should a startup switch banking platforms?

  Ideally never. That's the point of choosing well at seed. Switching means re-wiring payroll, vendor payments, every card-on-file subscription, and investor reporting, usually mid-growth when it hurts most. If your current platform has no treasury product, no credit path, and no accounting-stack integrations, plan the move before the finance hire, not after.