With IND®, banks can
- Access inexpensive and long-term floating-rate deposit funding through customized pricing contracts, thus IND helps banks minimize interest rate risk on floating-rate assets.
- Generally, raise as little as $25 million to as much as multiple billions of dollars in cost-effective, uncollateralized, floating-rate funding.
Diverse and Relatively Stable Funding
- Because IND deposits originate from millions of individual investors, the aggregate balances are stable, much like balances in your bank's aggregate transaction accounts.
Mostly Classified as Savings Deposits
- Typically, 95% of IND deposits will be classified as "MMDA Deposits" on the bank's balance sheet and Call Report and will NOT be subject to reserves.
Minimal Accounting Burden
- The bank accounts for IND balances on an "omnibus" level. The brokerage firms supplying the funding keep all individual client records.
No Settlement Fees
- Implementation is quick and easy, and banks incur no set-up costs. The contract price is the bank's all-in cost of funds; there are no additional fees.
To Learn More
- Email or call Promontory at 866-776-6426 (toll-free).