They offer treasury accounts that you can move money to and buy securities if you want yield.
So I don't think they have too much risk as far as interest on deposits. But what worries me, as a small business owner that has been using and loving Mercury for a few years now is that they offer free domestic and international wire transfers and I worry that they might start charging for that. It is the first bank I have had that did free international wires and I actually use that frequently. My last bank charged $85 and I literally had to fax a signed form to them to get it done.
The thing I don't know is if there is a per transaction fee that the banks pay. I assumed that there is and that Mercury was just eating the cost as a marketing expense.
There is still risk of interest rates rising significantly higher, but with 3 months treasure notes the downside is limited.
edit: typoed
I.e. don’t be SVB. Hire a risk officer.
Eh, how much does BofA or Chase pay on deposits? Interest rates have gone up, so they might hit 0.05% now?
It gave them the opportunity to make the mistakes they made. It didn't cause them. If you have more deposits than you can responsibly invest, you cut your rates until you can.