For Benefit Of (FBO) accounts can be a useful tool for a startup trying to manage money on behalf of others. However, they can also be complex and confusing and require legal evaluation. Depending on the bank you`re talking to, you may find a different definition and features for an FBO account. 1.1 Description of your AutoSave account.We use the term "AutoSave" to refer to the Services associated with the Empower AutoSave account. You can use your Empower AutoSave account to build up your savings by automatically transferring money from your personal checking or savings account ("Bank Account") to your AutoSave account. Your AutoSave account is not an individual deposit account. By using the Services, your economic funds may be held by NBKC in an Omnibus deposit account ("Omnibus Account") established in NBKC`s name. An FBO designation may also appear when electronically transferring funds to a bank. The check can be issued to the bank, but it is immediately transferred to the specified recipient`s account. If you have any questions about FBO accounts or other aspects of payment transactions, please contact us. The term "FBO" translates to "for the benefit of". It can appear in a variety of financial and legal documents. It appears most often in living fiduciary documents, but an FBO designation can appear on any account or asset with a beneficiary designation.

Let`s start with the basics. A For benefit account is a type of deposit account. This is a mutualized account that allows a company to manage funds in the name or "for the benefit" of one or more of its users without taking legal ownership of that account. Two important potential benefits of an FBO are sub-accounts with FDIC insurance and regulatory protection. 2.1 Transfer money to save. You can set up automatic transfers from your bank account to your AutoSave account using the app. To do this, you must first link your bank account to your AutoSave account in the app. Your bank account must be a personal savings account or a current account owed to you and held with a U.S.

financial institution. Your request to create a bank account is subject to our review and approval, as well as to NBKC. You can only have one linked bank account at a time. We, NBKC and our service providers may rely on the bank account number you provide to us, even if that account number is associated with a name different from the name you provide. It is not our responsibility to detect any discrepancies between the bank account number you provide and the name. This FDIC coverage limit is measured per depositor, per bank, and per account holder category. As an example, let`s say an end user of NeoBank is named Jane. Jane and NeoBank are both at Bank A. Jane`s personal deposit account and Jane`s virtual deposit account of the same account type via NeoBank will contribute to the $250,000 limit. We see several types of modern treasury clients using an FBO structure. Companies that create escrow accounts, peer-to-peer loans or a custodian of funds could potentially benefit.

However, FBO accounts are not for everyone. We recommend that businesses consult with legal counsel to clarify their account and regulatory requirements before speaking to a bank. In the event of errors related to new accounts, points of sale or transactions initiated abroad, we may need up to 90 days to investigate your complaint or question. For new accounts, we may need up to 20 business days to credit your account with the amount you deem incorrect. 1.3 Deposit Network Service Acknowledgement.By using the Services, your advantageous funds may be held with nbkc Bank in an Omnibus deposit account ("Omnibus Account"). In the course of its normal business activities, nbkc bank may use a "Deposit Network Service" to deposit funds from the Omnibus Account with other FDIC-insured banks ("Network Banks"). In the event that funds are deposited from the Omnibus account via the deposit network service with the banks in the network, nbkc bank will deliver the funds to a custodian bank participating in the deposit network service. In the event that one of your advantageous funds from the Omnibus account is received by a network bank via a deposit network service, it may be eligible for FDIC insurance, but if you or nbkc bank have funds directly or indirectly with one of the banks in the network, this deposit insurance coverage may be negatively affected.

and the principal amount and accrued interest cannot benefit from FDIC insurance, even if the total amount deposited in that network bank through the deposit network service is less than the standard maximum amount of deposit insurance as provided for at the time by the FDIC. In addition, in the event of a network bank failure, you may be asked to provide certain personal data for the purpose of processing a claim with the corresponding FDIC insurance. In the event that you do not provide this information in a timely manner, it is possible that the beneficiary funds do not benefit from FDIC insurance. By using the Services, you authorize nbkc bank to use a Deposit Network Service as described and acknowledge that all associated advantageous principal balances and accrued interest may or may not benefit from FDIC Insurance. 2.7 Account Restrictions. You can only transfer money to and from your AutoSave account via ACH by making a request in the app. You do not have access to an associated account and routing number or other access device to initiate external transactions. The initial limits for autoSave account deposits and withdrawals are $2,500 per day and $5,000 per month.

We may change these limits at our sole discretion. You may only make a transfer to the Empower AutoSave account using one (1) bank account at a time. To change your bank account, you must first transfer your entire AutoSave account balance to the currently linked bank account that you used to transfer that money. If the bank account is closed, please contact us to arrange the refund of the money in the form of a check to the registered address. This Empower AutoSave Account Agreement ("Agreement") is between you and Empower Finance, Inc. ("we", "us", "our") and governs your use of the Empower AutoSave Services ("Services"). The Services include an Empower AutoSave account ("AutoSave Account") provided to you by nbkc bank, a FDIC-insured bank licensed by the State of Kansas ("NBKC"). This Agreement explains how your AutoSave account works and the policies and terms that apply to the Services. By accepting this Agreement, applying for an account, or using any of our custodian account services, you agree to the terms of this Agreement. Other products or services offered in connection with the Account, such as . B the Empower mobile application ("Application"), may contain additional agreements that you must agree to in order to access the Service and that are incorporated by reference. Please read this Agreement carefully and keep a copy for your records.

4.3 Effects of closing your account. NBKC may restrict your account for closure. While we prepare your account for closure, we may cancel any planned transfer to your AutoSave account. NBKC will refund the balance less any fees, claims, offsets or other amounts to your bank account or will send you a check by mail to the last postal address we deposited for you. .