Accounts

for more information, refer to accounts and accounts accounts – frequently asked questions this section answers common questions about deposit accounts managed through the cross river platform, including types of accounts, subledgers, fbo accounts, and account operations general and account types what kinds of deposit accounts does cross river offer? cross river supports checking and savings accounts, certificates of deposit (cds), “for benefit of” (fbo) accounts, and subledgers (virtual accounts) under a master account what is a checking or savings account? these are standard deposit products in which customers deposit and withdraw funds a checking account allows frequent transactions; a savings account is meant for funds held longer term and may earn interest what is a certificate of deposit (cd)? a cd is a time deposit account with a fixed interest rate and a maturity term early withdrawals usually incur a penalty what is an fbo (“for benefit of”) account? an fbo account is opened by a fintech/platform for the benefit of end users the master bank account holds the pooled funds and the platform tracks individual user balances off ledger what are subledgers (virtual accounts)? subledgers are virtual “sub accounts” under a master deposit account they allow granular tracking of user or program level funds without opening full bank accounts for each individual opening and managing accounts what do i need to open a deposit account? to open an account you generally need a valid product id (account template), a customer id, address and phone number, a cleared ofac status, and matching customer classification to the account type (docs crossriver com) can i change account properties after opening? yes in the cos system you can update account title, statement address, status, credit limits or overdraft settings based on product configuration and partner permissions account activity, balances & transactions how are transactions handled on accounts? each transaction posts as a debit on one account and a credit on another, atomically accounts always remain balanced what is an “availability schedule”? some transactions (e g , ach credits) may have delayed availability the availability schedule shows how much of the credited amount becomes usable each posting day what is a memo post? a memo post is a temporary activity entry indicating incoming or outgoing funds that are pending final posting it converts to a posted transaction after settlement subledgers why use subledgers instead of opening individual accounts for each user? subledgers give you the flexibility to manage many users or program segments under a single master account number—great for wallets, marketplaces, or internal credit tracking what is the difference between “direct” and “passthrough” subledger configuration? direct the aggregate of subledger balances equals the master account balance; individual subledgers cannot go negative passthrough subledgers can go negative while the master account balance is the ultimate availability check compliance and program considerations are user funds in an fbo account fdic insured individually? by default, a pooled fbo account is insured at the account level—not per individual user with specific structuring and pass through requirements, individual user balances may be eligible for fdic pass through insurance how is the product type used in account configuration? the product type defines the account’s configuration (e g , which rails it supports, interest rate, withdrawal rules) you must refer to the correct product id when opening accounts