Tyson Murdock: Yes. So from a revenue perspective, when we gave guidance back on December 06, and you look at for example, the average CD rates jumbo CD rates, and you look at things like LIBOR, SOFR rates, they were actually lower then. So we got a tailwind from those that we would be putting into the yield rate as well as to the revenue top line. And then, just going back down to the plan from a perspective of profitability and the flow down of those custodial revenues, that’s why you see the bottom line lift up as well and so you have essentially that running down through the plan and we knew that would be the case and believe we’ve called it out at that time as well. And then the second question was the interchange, yes. So
Jon Kessler: That’s quarter-over-quarter sequential interchange.
Tyson Murdock: Yes, quarter-over-quarter sequential. You have more accounts and you have the seasonality that typically happens in Q4. And, we sold a lot of accounts, we brought those online. We have the seasonality. It was much more normal this time around than it has been over the last couple of years. And so that was probably to be expected. And we feel like that’s sort of stabilized itself.
David Larsen: So when you say seasonality, do you mean more people are going to the hospital using their health card? So utilization has increased, so that’s where that increase came from?
Jon Kessler: No. It’s more — it’s more about the normal seasonality of those card usages. So when you think about, for example, they’ll use it or lose it, nature of an FSA, towards the end of the year, people are going to use up those funds. You think about when a HSA is funded from an employer standpoint in January, sometimes people typically utilize those funds at that time. And so you have a normal seasonality in Q4 that occurs there, and you sort of have that flow into Q1, and then you get a much softer Q2, Q3 and that would be the more normal reps of the business that we haven’t necessarily seen over the pandemic era.
Tyson Murdock: I think David, one of the things about the nature of our fiscal year being January 31, is you got that January month where people begin a new plan year and haven’t met their deductible until pretty much everything’s out of pocket.
David Larsen: Okay, great. And then for the $22 billion of managed assets, is all of that FDIC insured every single one of those accounts?
Jon Kessler: No. So if I look at — I’ll take this one now. If I look at our overall custodial assets you can divide that first into two pies about $14 billion of it is what we call extra cash and the remainder is invested. The invested assets are obviously not FDIC insured. They’re in mutual funds and the like at the member’s discretion. So I think you understand that. If I look at the cash component it has two elements. The bulk of it is in our basic rates product, and all of those funds are in FDIC member institutions or NCUA, I guess, member institutions that offer pass through insurance to our members, subject to the usual $200,000 limit, which generally an HSA is not going to reach almost exclusively. And then with the enhanced rates product these are not FDIC insured.
They’re not deposits. These are as we’ve talked about before, these are group annuities that are insured by highly rated insurers that are again, entered into at the direction of the members. So that’s sort of the breakdown there. I guess I would add to all of that, what all of those have in common is, we do not bring — our members aren’t paying us to be a principal risk taker. We are not a principal risk taker. We don’t bring principal risk onto the HealthEquity balance sheet.
