Cash and credit solutions
Stability during times of uncertainty
Wealth planning is critical during times of financial uncertainty. Our cash management programs, including RBC Cash Plus, RBC Insured Deposits and U.S. government money market funds, can provide the options you need to help protect your cash.
RBC Cash Plus
RBC Cash Plus deposits are obligations of Royal Bank of Canada, which is a market leader in Canada and one of the largest financial institutions globally. RBC has a strong capital position, a high-quality liquid balance sheet and one of the highest credit ratings globally. This option is designed to help provide same-day liquidity and stability in all market environments. Bank deposits are not subject to market risk; thus the value does not fluctuate, providing for the protection of your cash.
RBC Insured Deposits
Your cash in RBC Insured Deposits is covered by Federal Deposit Insurance Corporation (FDIC) up to applicable limits. Cash in excess of FDIC limits is placed in a U.S. government money market fund to provide protection for larger cash balances. Like RBC Cash Plus, RBC Insured Deposits is designed to help provide same-day liquidity and stability in all market environments. Bank deposits are not subject to market risk; thus the value does not fluctuate, providing for the protection of principal.
U.S. Government Money Market Funds
Invested in U.S. government-backed securities, U.S. Government Money Market Funds can help provide protection for large cash balances. They are considered a safer alternative to prime and tax-exempt money market funds.
RBC Cash Management Account
Immediate access to your cash is essential. RBC Cash Management Account provides same-day liquidity so your cash is working for you when you need it most. The RBC Wealth Management Online mobile app provides you with on-demand access so you can deposit checks remotely from anywhere. Additionally, you have access to online bill pay, electronic funds transfer, RBC Visa® Platinum Debit Card with Apple Pay® and check-writing. Choose from competitive cash management solutions, plus leverage your securities to meet your short-term borrowing needs—all in one comprehensive account.
A fresh look at credit
Credit strategies may provide fast, convenient access to cash to help you achieve your financial goals. You may be able to borrow against eligible securities in your portfolio without interrupting your long-term wealth management plan. Once you know how much you can borrow, securities-based lending may help you:
- Prepare financially for the unexpected
- Seize timely opportunities
- Fund real estate purchases or make business investments
- Refinance higher-interest debt
RBC Wealth Management offers securities-based lending, and your financial advisor will work closely with you and a dedicated credit specialist to address your cash flow needs while maintaining the integrity of your investment portfolio.
RBC Credit Access Line
An RBC Credit Access Line offered by Royal Bank of Canada is a strategic source of financing for a broad range of contingency planning. Whether it is for emergency cash or to fund a life goal, you can gain fast access to the money you need by borrowing against the value of eligible securities in your portfolio. As an interest-only loan, you can repay the balance as your financial life permits. Featuring competitive interest rates, it is easy to apply for, there is no cost to set up and no fees until you take a draw.
- Variable- and fixed-interest rates available.
- Available from $75,000.
- Minimum initial draw is $1,000 via ACH and $75,000 via wire transfer.
RBC Express Credit
RBC Express Credit allows you to borrow against the cash value of eligible securities in your accounts. Used with an RBC Cash Management Account, it offers quick, easy access to cash, with no processing delays, closing costs or credit history review. Plus, you set your own repayment terms and pay off your balance when it fits your needs.
RBC Wealth Management provides you with the resources you need to manage your wealth, especially in times of uncertainty. Contact your financial advisor to learn more about these cash management solutions, or find a financial advisor.
RBC Cash Plus is an automated cash sweep option that sweeps un-invested cash balances in clients' accounts into interest-bearing deposit accounts at the RBC Three World Financial Center Branch located in New York, a U.S. branch of Royal Bank of Canada, a Canadian bank. Funds on deposit at the Branch are not insured by the Federal Deposit Insurance Corporation (FDIC), Securities Investor Protection Corporation (SIPC) or any governmental agency of the United States, Canada or any other jurisdiction. RBC Cash Plus availability is subject to certain restrictions.
RBC Insured Deposits availability is subject to certain restrictions. RBC Insured Deposits is designed to provide $5 million in FDIC coverage per depositor in each insurable ownership capacity. Each deposit account constitutes a direct obligation of the program bank and is not directly or indirectly an obligation of RBC Wealth Management.
U.S. government funds covered by SIPC and excess SIPC up to applicable limits. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds. Prospectuses containing more complete information, including investment objective, risks, fees and expenses, are available by calling your RBC Wealth Management Financial Advisor. Please read it carefully before investing or sending money.
Eligibility restrictions and balance minimums may apply to U.S. government money market funds available as automated cash sweep options.
After December 31, 2021, the panel banks that submit rates required to calculate the LIBOR will no longer be required to do so. The transition away from LIBOR will require changes to the way that interest is calculated on loans that use the LIBOR as a benchmark. Borrowers with affected loans will be notified of such changes in advance of them taking effect.
RBC Credit Access Line is a securities-based, demand line of credit offered by Royal Bank of Canada, an Equal Opportunity Lender and a bank affiliate of RBC Capital Markets, LLC. Subject to Credit Approval. Securities-based loans involve special risks and are not suitable for everyone. You should review the provisions of the RBC Credit Access Line agreement and related disclosures, and consult with your own independent tax and legal advisors about any questions you have prior to using RBC Credit Access Line. Considerations should be given to loan requirements, portfolio composition and diversification, time horizon, risk tolerance, portfolio performance expectations, and individual tax situations. There are important risks associated with securities-based loans that you should consider:
- You will be required to deposit additional cash or securities, or pay down the line of credit, should the value of your securities decline below the percentage equity you must maintain or the percentage equity you must maintain increase. During a market downturn in which the securities in your portfolio decline in value, the percentage equity you must maintain will cause your losses to be greater than if there were no loan against your portfolio. Your losses can exceed your original collateral amount.
- You are not entitled to an extension of time to satisfy equity percentage requirements.
- Should you be unable to maintain the required percentage equity, some or all of your securities may be sold without prior notice to you. In the event of such a sale, you will not be entitled to choose which securities are sold, your long-term investment strategy may be interrupted and you will be responsible for all resulting fees and tax consequences.
- Royal Bank of Canada may increase equity percentage requirements at any time without prior notice to you and may require you to pay down your line of credit, in part or in full, at any time and for any or no reason.
- The rates, terms and conditions of your RBC Credit Access Line are subject to change in accordance with the terms of the RBC Credit Access Line agreement.
- Should the rate of your RBC Credit Access Line be set to float against an index, you will be subject to greater interest costs in a rising interest rate environment.
RBC Credit Access Line is a non-purpose facility. The proceeds of an RBC Credit Access Line may not be used to purchase, trade, or carry margin stock or repay a margin debt that was used to purchase, trade, or carry margin stock. Royal Bank of Canada may demand repayment of all proceeds of RBC Credit Access Line advances that it has reasonable basis to believe were used to purchase or carry margin stock.
RBC Wealth Management, a division of RBC Capital Markets, LLC, is a registered Broker-Dealer, Member FINRA/NYSE/SIPC, and is not a bank. Where appropriate, RBC Capital Markets, LLC has entered into arrangements with the Royal Bank of Canada to help facilitate and service your RBC Credit Access Line. RBC Capital Markets, LLC and its affiliates and their employees do not provide tax or legal advice.