Understanding Your Different Accounts: Cash, Credit, Savings, and Treasury

Overview

Slash offers several types of accounts to help you manage your business finances. Each account serves a specific purpose, and understanding the differences can help you make the most of your Slash setup. This article explains the four main account types available on Slash: Cash Accounts, Credit Accounts, Savings Accounts, and Treasury Accounts.

Cash Accounts

Your cash account is your primary business checking account. This is where you'll handle everyday transactions: receiving payments, paying vendors, processing payroll, and managing day-to-day operations. Cash accounts include:

• FDIC insurance: Your deposits are protected by up to millions of dollars in FDIC insurance through the Column N.A. sweep network
• Unlimited subaccounts: Create separate virtual accounts for different purposes like marketing budgets, payroll reserves, or project funds
• Full payment capabilities: Send and receive ACH transfers, domestic wires, international wires, and real-time transfers.
• Card spending: Issue virtual and physical debit cards that draw directly from your Cash Account balance

Funds in your cash account are always available for immediate use. There's no waiting period or restrictions on withdrawals.

Credit Accounts

Credit Accounts power your Slash Cards. Unlike a traditional credit card, the Slash Card is a secured charge card backed by cash deposits you make into a collateral account.

Here's how it works: when you deposit funds into your credit account, those funds are held as collateral and determine your spending limit. When you make a purchase with your charge card, the amount is temporarily authorized against your collateral. At the end of each billing cycle, your charges are automatically paid from your collateral balance.

Credit Accounts consist of several sub-accounts working together:

• Collateral Account: Where your deposited funds are held to back your spending
• Transactional Account: Where ACH and wire withdrawals originate when you move money out
• Repayment Account: Used internally to settle your charge card balance

The Slash Card is ideal for businesses that want the convenience of card payments with spending backed by their own deposited funds rather than borrowed money.

Savings Accounts

Savings Accounts let you set aside funds that you don't need immediately while keeping them accessible. These accounts are designed for short-term reserves or funds you're earmarking for future expenses. Savings Accounts offer the same FDIC insurance protection as Cash Accounts. You can transfer funds between your Savings and Cash Accounts at any time.

Treasury Accounts

Treasury Accounts allow you to earn yield on idle cash. Instead of letting excess funds sit in a non-interest-bearing account, you can move them to Treasury and put that money to work. Key features of Treasury Accounts:

• Competitive yield: Earn returns on funds you're not actively using. For the current annualized percentage yield for Slash treasury accounts, visit our website's treasury page.
• Flexible access: Move funds in and out as your cash flow needs change; Slash's treasury accounts enable same-day access to funds.
• No lockup periods: Unlike many investment products, your funds remain accessible.

Treasury is best suited for funds you don't expect to need in the immediate term but want to keep relatively liquid. Transfer times back to your Cash Account are typically quick, but may vary based on amount and timing.

For more information about the money market funds tied to Slash treasury accounts, read our help article "Understanding Money Market Funds: TSTXX & MULSX."

How the Accounts Work Together

Many Slash customers use multiple account types as part of their financial strategy:

• Keep operating funds in your Cash Account for daily expenses and payments
• Deposit collateral into your Credit Account to enable Charge Card spending
• Use Savings Accounts to set aside emergency reserves or funds for planned expenses
• Move excess cash to Treasury to earn yield on funds you won't need immediately

You can view all your accounts and their balances from your Slash dashboard. Transferring funds between account types is straightforward and can be done directly from the app.

Need More Help?

If you have questions about which account type is right for your needs, or if you'd like to learn more about opening additional accounts, contact our support team through the Slash app or at support@slash.com.