Using ICS®, the Insured Cash Sweep® service, Promontory Network members can offer customers the ability
to access multi-million-dollar FDIC insurance and to earn interest on funds placed into demand deposit accounts and/or money market
ICS can help banks to:
Offer customers interest and flexibility while maintaining safety – Network members may offer
customers the choice to place funds using an ICS demand option, an ICS savings option, or both.
The ICS demand option provides liquidity by allowing unlimited program withdrawals of
The ICS savings option can provide your bank with the option to offer a higher interest
rate and allows up to six program withdrawals per month.
- Replace more burdensome and costly funding options, and increase asset liquidity at the same time, by repurposing collateral from collateralized deposits, repo sweeps,
letters of credit, etc., into higher earning assets.
- Attract large-dollar relationships cost-effectively – ICS balances average over $1.9 million per customer.1
- Control the cost of funds – Relationship banks set the rates for funds placed using ICS and maintain
complete ownership of the customer relationship. Also, there is no reserve requirement for reciprocal deposits received when
using the ICS savings option.
1 As of 12/31/12
How does ICS work?
When a member bank places a customer’s funds using ICS, the deposit is sent, or swept, from a transaction account
at that bank into demand deposit accounts (using the ICS demand option) or from a transaction account at that bank into
money market deposit accounts (using the ICS savings option) at other member banks in amounts below the standard FDIC
insurance maximum ($250,000). This makes the customers funds eligible for FDIC protection. As a result, customers
can access FDIC insurance coverage from many institutions while working directly with just one.
Customers communicate with their banks service team and receive monthly statements from that bank. And, as always,
customers confidential information is protected.