Frequently Asked Questions

Red Capital is an innovative digital savings platform that uses advanced AI technology to help maximize your returns. Our proprietary Sweep System continuously scans over 3,000 insured banks and credit unions through the INTERFI network, searching for the highest CD rates available. We're a financial technology company, not a bank, working through licensed money transmitter partners and partner banks to provide our services.

Red Capital offers a range of digital savings products designed to maximize your returns: 1. High-Yield CDs (Certificates of Deposit) - Access to competitive rates across our network of 3,000+ financial institutions - Various term lengths available - Our AI Sweep System continuously monitors for the best rates - Automatic rate optimization opportunities 2. Smart Savings Accounts - Flexible savings accounts with competitive interest rates - No minimum balance requirements - Easy access to your funds when needed - Continuous rate monitoring and optimization 3. Multi-Bank CD Ladders - Strategic distribution of funds across multiple CDs - Staggered maturity dates for better liquidity management - Automated reallocation for optimal returns - AI-powered rate hunting across our entire network Each product is managed through our platform, with all transactions and account management handled exclusively through Red Capital's secure interface. Note: All products are offered through our partner banks and licensed money transmitter partners in compliance with federal and state regulations.

No, Red Capital is not a bank, so we do not support banking services.

For security purposes and to prevent potential fraud, Red Capital maintains strict confidentiality regarding our custodial banking relationships. Our custodial banks are well-established, highly-regulated financial institutions that meet rigorous security and compliance standards. While we keep these relationships private, you can be assured that: 1. All custodial banks in our network are properly licensed and regulated 2. Client funds are held in segregated accounts 3. Strict security protocols and monitoring are in place 4. All transactions are processed in compliance with federal and state regulations For the protection of our clients and the integrity of our platform, we do not disclose specific information about our custodial banking partners. This policy helps prevent fraudulent activities and maintains the security of our financial network. Remember: As a Red Capital client, your relationship is exclusively with Red Capital, and all account inquiries or transactions must be conducted through our platform.

A custodial account at Red Capital is your secure, personal account that serves as the hub for all your transactions and investments on our platform. Here's how it works: 1. Account Structure - Your Red Capital custodial account is your primary interface with our platform - It acts as a central point for managing all your investments - Allows you to view and manage your funds across multiple investments 2. Account Management - All deposits and withdrawals flow through your custodial account - You can monitor all your investment activities in real-time - Access to detailed transaction history and performance reports - Full control over your investments through our secure platform 3. Security and Protection - Your custodial account is protected by industry-leading security measures - Multi-factor authentication - Encrypted transactions - 24/7 monitoring for suspicious activities 4. Investment Process - Funds deposited into your custodial account can be directed to various investment opportunities - Our AI Sweep System identifies optimal rates for your investments - All investment decisions and authorizations are made through your custodial account Remember: Your custodial account is your exclusive gateway to Red Capital's services, and all activities must be conducted through our platform.

Although Red Capital customers’ deposits are pooled in omnibus custodial accounts, there is no impact on the eligible deposit insurance coverage you receive from the financial institution holding your savings. This is because the government entities providing federal deposit insurance — the FDIC for banks and NCUA for credit unions — permit pass-through coverage. So your money has the same coverage in a custodial account as if it were held in an individual account in your name.

Red Capital does not charge our customers any fees — seriously. The only fee you may encounter on the Red Capital platform is an early withdrawal penalty on a fixed-term CD, as outlined in that product’s terms.

Red Capital's platform and services are completely free for our users. We're able to offer our innovative AI-powered Sweep System and all its benefits at no cost because our partner banks and credit unions pay marketing fees to Red Capital for connecting them with savers across the United States. This creates a win-win situation - our users get access to better rates and our advanced platform at no cost, while our banking partners gain access to qualified customers. There are: - No platform fees - No monthly charges - No maintenance fees - No hidden costs Our revenue comes solely from our partnerships with financial institutions, allowing us to focus on maximizing returns for our users without any additional costs to you.

Interest (or dividends in the case of credit union savings products) is compounded daily and posted to your account monthly.

Red Capital itself is not a bank and does not hold FDIC or NCUA insurance. Red Capital is a financial technology platform that connects users with investment opportunities through our partner network. However, when your funds are placed with our partner banks and credit unions through our Sweep System: - Banks in our network are FDIC member institutions - Credit unions in our network are NCUA member institutions - Insurance coverage is provided by these institutions according to their regulatory requirements Important Notes: 1. Insurance coverage is provided by the partner institutions, not by Red Capital 2. Coverage limits and terms are set by the FDIC/NCUA and the individual institutions 3. As a Red Capital client, your relationship is exclusively with Red Capital, and all account inquiries must be directed to our customer service team It's essential to understand that while the individual institutions in our network may carry federal insurance, Red Capital itself is a technology platform and does not provide or claim to provide any form of deposit insurance. For specific questions about insurance coverage, please contact Red Capital's customer service team.

**How does Red Capital protect my data, privacy, and finances?** At Red Capital, protecting your data, privacy, and financial security is our top priority. Here's how we maintain robust security across all aspects of our platform: Data Security - Bank-level encryption of all personal and financial data - Multi-factor authentication (MFA) required for all account access - Regular security audits and updates - Secure, encrypted servers with 24/7 monitoring - Advanced fraud detection systems Privacy Protection - Strict privacy policies compliant with federal and state regulations - Limited employee access to personal information - No sharing of personal information with third parties except as required for service delivery - Regular employee training on privacy protocols - Secure data disposal practices Financial Security - All transactions are encrypted and monitored - Automated suspicious activity detection - Real-time transaction monitoring - Regular account activity reviews - Secure payment processing systems Account Protection - Automatic logout after periods of inactivity - IP address monitoring - Device verification - Biometric login options (where available) - Immediate notification of suspicious activities We continuously update our security measures to stay ahead of emerging threats and maintain the highest standards of protection for our users. Remember: If you ever notice suspicious activity on your account, contact Red Capital's security team immediately.

**How does Red Capital determine which banks and credit unions it partners with?** Red Capital maintains strict standards when selecting our financial institution partners. Our vetting process includes: Regulatory Compliance - Verification of all required federal and state licenses - Confirmation of regulatory good standing - Review of compliance history - Assessment of regulatory reporting Financial Health Evaluation - Analysis of capital adequacy - Review of financial stability metrics - Assessment of risk management practices - Evaluation of operational sustainability Operational Requirements - Technology compatibility with our AI Sweep System - Ability to meet our service level standards - Demonstrated operational efficiency - Robust security infrastructure Performance Standards - Competitive rate offerings - History of reliable service - Strong track record of customer satisfaction - Consistent product availability Continuous Monitoring - Regular review of partner performance - Ongoing compliance verification - Periodic risk assessments - Regular evaluation of financial health Our rigorous selection and monitoring process ensures that our network includes only qualified institutions that meet our high standards for security, stability, and service quality.

Red Capital only partners with banks and credit unions that are insured by the Federal Deposit Insurance Corporation or National Credit Union Administration, respectively. Federal deposit insurance protects depositors’ funds against loss in case of bank or credit union failure up to $250,000 per depositor, per institution, per account ownership category. Saving money up to this limit with a federally insured financial institution remains a relatively safe way of storing savings. Both agencies report that no depositor has ever lost a penny of insured funds in instances of institutional failure or insolvency.

Red Capital works with banks in the INTERFI network.

Opening a Red Capital account is easy, requires no credit check, and typically takes less than five minutes. Here’s how: 1. View the offers on our savings marketplace and select your preferred product. 2. Follow prompts to enter your email and create a password. 3. Complete our simple online application and, after successful identity verification, link a bank account from which to fund your first deposit. 4. Start earning interest as soon as your money is credited. Any questions or concerns? Email us at support@redcapitalsupport.com

All deposits and withdrawals are completed within one to three (1-3) business days. After the initial deposit, you may encounter a withdrawal limitation for the first few business days. Business days are Monday through Friday excluding U.S. bank holidays. Limitations and fees on transfers are product-specific. For high-yield savings accounts or money market deposit accounts, there are no limits on deposits to or withdrawals. For certificates of deposit, no further deposits can be made after a CD is opened and withdrawals before account maturity may incur penalty fees. Consult your specific product’s terms for more details. For no-penalty certificates of deposit, no further deposits can be made after the no-penalty CD is opened and only complete withdrawals are possible. There are typically no fees for withdrawal, however there may be a minimum period to have your funds deposited. Consult your specific product’s terms for more details.

Your routing number and account number are displayed at the bottom of your personal check (see image). If you don’t have a check, you can log in to your account online or through your mobile banking app to locate this information. Otherwise, contact your bank by phone or by visiting a branch.

Currently, our platform allows customers to add deposit products to their Red Capital account with a joint owner, entity, trust, personal and custodian relationship.

No, you don't need to register or open accounts directly with any banks or credit unions. As a Red Capital client, we handle all the account management for you. You only need your one Red Capital account to access our entire network of over 3,000 insured financial institutions. Your deposits are held in Red Capital's name as custodian for your benefit, while you maintain full ownership and insurance coverage. This structure allows us to seamlessly optimize your returns across our network without requiring you to manage multiple bank relationships.

To deposit funds into your Red Capital account, you must first complete these essential steps: 1. Complete your account opening process 2. Select a specific investment product 3. Successfully complete identity verification 4. Link a bank account that you personally control Important: You cannot deposit funds if: - Your account opening is incomplete - You haven't selected a product - Your identity verification is pending - You're trying to link a bank account you don't control Once you've completed all these requirements, you'll be able to initiate deposits to your Red Capital account.

Yes! It’s easy to open a joint account with Red Capital. For step-by-step instructions, click here.

If you are unable to add an external account to your Red Capital profile, it is likely because you are a secondary account holder. Currently, only primary account holders can add an external account to their profile.

If you are a secondary account holder on a joint account, you will be unable to view tax documents directly. Currently, only primary account holders have access to this feature.

Please email us at support@redcapital.partners.

If your per-institution balances via Red Capital are all below the maximums, then you should encounter no major changes in your day-to-day use of the Red Capital platform. The only thing you may notice is an alert if you attempt to initiate a deposit that would put you over the per-institution limits of our platform.

If you currently have deposits at an institution or across any of its brands that are above these limits, there will be no change to how your funds are allocated and the new limits will not require you to move any funds out of these accounts. For funds currently deposited in certificates of deposit, please remember that any changes you wish to make remain subject to any early withdrawal penalties as outlined in your product terms. For funds currently deposited in high-yield savings or money market deposit accounts, please note that you will not be able to make further deposits to accounts in excess of these limits and, instead, will need to make the deposit into an account with a new institution. It is easy, however, to make deposits into new products offered by other institutions. If you would like to deposit additional funds, please go to “Explore products”, select a product offered by a different institution, and follow prompts to deposit. As a reminder, there are no fees for funding additional savings products with your Red Capital account.

Because of the rates our partners offer, there is a chance that you may deposit funds that are above our per-institution maximums of $250,000 for individual and $500,000 for joint accounts. For high-yield savings or money market deposit accounts that reach per-institution limits due to interest earned, you will no longer be able to deposit additional funds to these accounts. However, you can easily withdraw funds to deposit into a product offered by a different institution. For certificates of deposit, please remember that any changes you wish to make remain subject to any early withdrawal penalties as outlined in your product terms.

If your certificate of deposit automatically renews and the new balance is above our per-institution limits, please note that funds in excess of per-institution federal deposit insurance limits are not covered. As always, you have a seven-day grace period to cancel a CD rollover with no penalties.

Federal deposit insurance limits are per institution and include all funds our customers have on deposit, both through their relationship with Red Capital and outside of Red Capital. As further detailed in our Terms of Service, it remains your responsibility to monitor your funds and respective deposit insurance coverage.

No, Red Capital does not engage in any monitoring of per-institution balances. While Red Capital can make it easy for you to maximize your federal deposit insurance, it remains your responsibility to regularly check your account and to decide what you would like to do with any funds in excess of the deposit insurance limits. Please monitor the amount of funds you have on deposit at each partner bank and/or credit union, both through your relationship with Red Capital and outside of Red Capital, in order to stay within federal deposit insurance limits.

Please email us at support@redcapital.partners

To ensure the Red Capital platform is as safe and secure as possible, we work with federally insured banks as the custodians of your funds. These custodian banks establish accounts at each bank or credit union on our platform and hold the funds there for the benefit of customers. This allows you to open one single Red Capital account with the custodian banks while funding multiple products at different financial institutions if you so choose. Red Capital never touches your funds and they are always held with a federally insured institution for your safety and security.

Yes, you will receive a consolidated Form 1099-INT for all products where your aggregated earned interest per custodial bank is equal to or higher than $10.

Many of our customers hold multiple savings products on our platform. In order to minimize your paperwork, we are now issuing 1099s per custodian bank, rather than one per product.

The interest income field is populated with the aggregated capitalized interest earned across all products during the 2023 financial year. Forms will be aggregated by custodian banks. You can view a breakdown by account level calculations by logging into your Red Capital account and viewing the documents section.

Yes. IRS regulations require that all the accrued interest income from the last year must be reported as interest income, irrespective of the product category. Further IRS guidance can be found here: https://www.irs.gov/instructions/i1099int

1099-INT Forms will be issued to the primary account owner. The primary account owner is the first name and taxpayer identification number listed on an account. Only the primary account owner’s name and taxpayer identification number are included in the submission to the IRS, regardless of any secondary account owners.

Each partner bank is mapped to a specific custodial bank (details of this mapping can be found here). For reporting purposes, Red Capital aggregates the interest you earned across a group of institutions under each custodian. For example, if you earned: $15 from XYZ Bank, associated with Lewis & Clark Bank $20 from ABC Bank, associated with Lewis & Clark Bank $25 from DEF Bank, associated with Central Bank of Kansas City You will receive 2 Form 1099-INTs: One form with Lewis & Clark Bank listed as the payer with an aggregated interest income of $35 ($15+$20) One form with the Central Bank of Kansas City listed as the payer with an aggregated interest income of $25

Your Red Capital tax documents can be accessed through your Red Capital account. Log into your Red Capital account Click Documents at the top of the page. You will first see your monthly statements. From here, click Tax Documents. You will be brought to the most recent tax year. If you are looking for documents from a previous tax year, click the drop-down menu in order to select the year you need. Click on this icon to download each 1099-INT Please note that you may not have tax documents for all years available in the drop-down menu. You will only receive tax documents for years during which you earned $10 or more in interest via Red Capital. If you have a joint account, only the primary account holder is able to access tax documents for any shared accounts.

No, only the primary account holder will receive tax documentation.

A 1099-INT form is a tax form used in the United States to report interest income earned from various sources. The form is typically issued by banks and other financial institutions to individuals who have earned interest income on their accounts throughout the tax year. It includes information such as the total amount of interest earned and, if applicable, any associated taxes that were withheld.

Yes, you generally need to report the information from your 1099-INT on your tax return. The interest income you receive is considered taxable income, and the IRS requires you to report it on your federal income tax return. Even if you don't receive a 1099-INT, you are still responsible for reporting all your interest income.

The entire amount of interest income you receive is generally considered taxable. However, there are some exceptions and specific situations where certain types of interest may be tax-exempt. It's important to review the instructions that come with your 1099-INT and consult with a tax professional to ensure you accurately report and calculate your taxable interest income.

Your money remains fully protected. If a partner bank fails, your funds are covered by insurance (up to applicable limits). Our Sweep System is designed to automatically handle these situations: - In case of bank failure: Your funds remain protected by FDIC/NCUA insurance, and our system will automatically move your deposits to another institution in our network. - In case of bank sale/merger: These corporate changes don't affect your deposits. If the new institution remains in our network, your funds can stay there. If not, our system will automatically move your funds to another partner bank offering optimal rates. In either scenario, you don't need to take any action - our system handles the transition seamlessly while maintaining your earnings and protection.

Your money remains safe and protected. Here's why: Your deposits are held directly at insured banks and credit unions, not by Red Capital. We act solely as a technology platform and service provider - we never take ownership of your funds. In the unlikely event of Red Capital's closure, your deposits would remain secure at their respective financial institutions with full insurance coverage. Additionally, we maintain detailed records of all client accounts and have contingency plans in place to ensure you maintain uninterrupted access to your funds.