Before Moving Treasury to Mercury, Run This Five-Point Check
A Mercury treasury switch is a cash-management decision: check deposit insurance, sweep limits, net yield, minimums, and exit terms before moving idle cash.
The holder question comes before the yield
You are deciding whether to move idle cash from your current bank into Mercury Treasury. Start with who holds the account and what happens when payroll needs the money, not the headline yield.
Mercury is a fintech, not an FDIC-insured bank, and it delivers banking services through partner banks. Deposits sit with FDIC-insured partner banks, not with Mercury. In December 2025, Mercury sought an OCC national bank charter, along with FDIC deposit insurance.
The pending application does not change today's coverage. A founder should be able to name the depository institution and the insurer without relying on marketing copy. If the answer is a platform, the next question is which partner bank holds the funds.
The line that changes the risk picture is that Mercury Treasury assets get SIPC protection if Apex Clearing fails, not FDIC deposit insurance or a market-loss guarantee, while Mercury checking and savings accounts get FDIC coverage from partner banks.
The five checks decide the move
The scorecard is short because each point can be checked in a minute, and it is the part of the decision that survives a rate change. Put the current bank's coverage, yield, settlement timing, and minimums on the same page before adding Mercury.
- Confirm the deposit holder and insurance coverage.
- Check the sweep insurance limit.
- Compare net yield and liquidity terms.
- Verify the minimum balance.
- Map the exit terms and operational dependencies.
The checks ask who legally owns the account relationship, what coverage number applies, what net yield reaches the bank account, what minimum applies, and what happens when the founder wants out.
The current setup is the baseline, even if it is boring. The switch only wins when the new setup is better on the points that matter to the cash, not just on the points that look good in a summary.
Yield and liquidity are the visible trade-off
The sweep network can provide FDIC coverage up to $5 million, versus the usual $250,000 per depositor at one bank. The minimum is a cutoff: a business needs $250,000 in Mercury deposits to qualify for Treasury. Those two numbers frame the conversation.
Mercury Treasury offers an investment option for unused cash in conservative money market funds. The product uses lower-risk mutual funds from outside partners, including J.P. Morgan and Morgan Stanley. The advertised maximum yield is 3.89%, built from high-liquidity, lower-risk portfolios managed by Morgan Stanley Investment Management and State Street Investment Management.
The yield number needs a fee check. Above $20 million, the after-fee net yield has reached 3.80%, with 0.15% to 0.60% advisory fees already inside that figure. A smaller balance may see a different net number, so compare the after-fee figure, not the gross rate.
Put the current bank's rate in the same comparison. If the current account pays less but settles instantly, the difference may not be worth the settlement delay. If it pays more, the switch needs a clear operational reason.
Liquidity is the other half of the trade. Depending on mix and deposit size, the product offers lower-risk mutual fund choices with same-day or next-day liquidity and yields between 3.2% and 3.9%. A withdrawal from Mercury Treasury takes one to three business days to settle. The delay is slower than a checking account, and it should be priced as a working-capital constraint.
Exit terms are the hidden cost
The protection question is not theoretical when a payout, payroll run, or investor distribution depends on the cash being available. If the cash is in Treasury, know which protection applies before the money is needed.
The platform's revenue model is part of the dependency check. Mercury's revenue comes mainly from card interchange, interest plus spread on deposits and treasury products, plus fees on payments and related services.
Exit terms should be tested, not assumed. Schedule a withdrawal on a date that matters and confirm the settlement timing against the payment deadline. If the cash is needed for payroll, do not rely on a product that settles after the funds are due. Also note whether the account can be closed without moving other operating accounts.
