LAST REVIEWED Mar 13 2023 3 MIN READ
By The Human Interest Team
Following the unfortunate news about the closing of Silicon Valley Bank and Signature Bank, we want to update our customers on the state of our retirement plan assets and Human Interest operations.
Is Human Interest affected by the closing of Silicon Valley Bank or Signature Bank?
No. We do not anticipate that the closure of either bank will have a material impact on Human Interest or its operations. Human Interest does not have accounts at Signature Bank. Human Interest does have accounts at Silicon Valley Bank, but the amounts held in the accounts are not meaningful to Human Interest’s operations.
What If I use Silicon Valley Bank or Signature Bank to process employer contributions and plan administration fees?
If you bank with either bank and use that account to fund your Human Interest account, you may need to transfer banking services in order to cover forthcoming ACH transfers. Refer to our support center article on how to update or change your banking information.
What happens if we do not provide a valid bank account by our next payroll?
Human Interest has a standard process in place to address ACH transfer failures when they occur. If your ACH fails, we will reverse the transactions, and pause future contributions until your connected bank account clears, either with a new or existing account. Our team will prioritize former Silicon Valley Bank and Signature Bank customers when reprocessing failed contributions.
Are any plan or participant funds held at Silicon Valley Bank or Signature Bank?
No. Plan and Participant funds are held at Matrix Trust, which is an unrelated financial institution. Plan and Participant funds are not affected by the closure of either bank.
Is my payroll provider impacted by the closure of Silicon Valley Bank or Signature Bank?
Some payroll providers may use Silicon Valley Bank or Signature Bank to process payroll. Human Interest is unable to view or verify the banking operations of your payroll provider and you will need to contact them directly for clarification.
For the latest information, refer to the FDIC website for Silicon Valley Bank or Signature Bank.
The Human Interest Team
We believe that everyone deserves access to a secure financial future, which is why we make it easy to provide a 401(k) to your employees. Human Interest offers a low-cost 401(k) with automated administration, built-in investment education, and integration with leading payroll providers.