Ramp offers business and investment accounts

Spend management solution provider Ramp announced the release of Ramp Treasury, which can act as a business or investment account for users. 

Specifically, Ramp Treasury lets businesses store cash in a business account that earns 2.5% interest, or in an investment account with the potential for higher yields, all within the same platform they already use to pay their bills. 

Users can create as many business accounts as they need versus having to juggle multiple accounts and passwords. They can also set a target balance for their Ramp Business Account and top up from their checking account. Upon opening a Ramp Business Account, Ramp will pay users a monthly cash reward, calculated as a percentage of their deposited funds. They begin earning on the first dollar they deposit, and there is no cap to how much they can earn. Earnings are disbursed automatically by Ramp each month. Earnings are paid as cash, versus statement credits or rewards requiring redemption. Instead, the customer can transfer earnings from their Ramp Business Account to be used as cash elsewhere.

Customers can transfer funds in and out of a Ramp Business Account via externally linked commercial or business bank accounts. Funds that are moved may settle as quickly as the same day, but could take as long as five business days. Funds in a Ramp Business Account can be used to pay Ramp statements, Ramp Bill Pay and employee reimbursements. Payments to Ramp statements settle instantly. At this time, the Business Account cannot be used to deposit checks, receive external payments, receive transfers from bank accounts that are not linked to Ramp, or make payments outside of the Ramp platform.

The Ramp Investment Account, meanwhile, allows businesses to invest cash in the Invesco Premier U.S. Government Money Portfolio (FUGXX), a money market fund. Securities products and brokerage services are provided by Apex Clearing Corporation, an SEC-registered broker-dealer. The Investment Account is not a deposit product, not insured by the FDIC, and may lose value.

The launch is part of Ramp's ambitions to automate more areas of the financial tech stack beyond payments.

"The old treasury playbook meant either constant micromanaging of cash positions and payment dates … or just accepting you'll lose out on interest. The new playbook is refreshingly simple: let technology do the heavy lifting, so you don't have to," said Ramp CEO Eric Glyman. "This is why we created Ramp in the first place. We find every cent you deserve so you can focus on moving your business forward. It's all about the timeless principle of making every dollar and hour work harder, and go farther."

While the service acts a lot like a bank account, Ramp is not a bank and therefore is not subject to all the same rules and regulations of a bank (though the accounts are FDIC insured, according to the website). The Business Account is a deposit account offered through First Internet Bank of Indiana, which is the one who provides the bank services. There are no account opening or management fees, no deposit minimums, and no withdrawal restrictions. 

Ramp Treasury allows for unlimited same-day ACH, international wires and domestic wires. It also offers alerts before funds are low or if cash is available to invest. The solution provides support for fully integrated workflows from beginning to end, meaning that cash transfers and earnings automatically sync with a connected ERP system and get categorized in the correct general ledger accounts. The security features allow only authorized people to transfer or release money, and the software provides a comprehensive audit trail. Ramp also makes Ramp for Accounting Firms.