OmegaFi has launched another money-saving solution for chapters, clubs and groups. The 31-year-old fintech company has expanded Federal Deposit Insurance Corporation (FDIC) insurance coverage to all its billing and payments software customers.
Now, whether clients opt to electronically send money to a third-party bank account or hold funds in a OmegaFi Vault Bill Pay fund or LegFi Treasury Account, the money is covered by FDIC insurance to the maximum extent of the law (currently $250,000 per depositor).
“Regardless of whether a client selects our LegFi or Vault billing and payments software product, FDIC insurance provides these organizations with a secure banking environment and reassurance that their funds are safeguarded,” said Noah Borenstein, product group leader, Higher Education division at Togetherwork. “This is another example of how we’re always thinking about ways we can protect our clients’ financial assets.”
Four reasons why FDIC insurance matters* to chapters, clubs or groups who manage financial transactions:
- Bank Account Protection: If a chapter, club, or group has a bank account where it holds funds, FDIC insurance ensures the deposited money is protected up to the specified limit (currently $250,000 per depositor). In case of a bank failure, the chapter, club, or group’s funds would be reimbursed by the FDIC up to the insured limit.
- Risk Mitigation: Chapters, clubs and groups often collect membership dues, event fees, or donations from members and external sources. These funds are typically deposited into a bank account for safekeeping. FDIC insurance supplies a level of risk mitigation, assuring the organization that even if the bank were to fail, their funds would be covered within the insured limit.
- Financial Stability: Chapters, clubs and groups often engage in long-term financial planning for events, philanthropic activities, scholarships, and other initiatives. Having FDIC-insured bank accounts helps maintain financial stability and ensures the funds are secure long term.
- Compliance & Accountability: Many chapters, clubs and groups must keep transparent financial records and adhere to specific guidelines and regulations, especially if they are affiliated with a national or international organization. Using FDIC-insured bank accounts proves responsible financial management and compliance with best practices.
OmegaFi has partnerships with nearly 50 inter/national member-based organizations; and its financial and administrative products are used at more than 650 university campuses across the US.
*Information supplied above does not constitute professional financial advice.
