Insured Cash Sweep Overview
Using ICS®, the Insured Cash Sweep® service, Promontory Network members can offer customers access to multi-million-dollar FDIC insurance and a return on funds placed into demand deposit accounts, money market deposit accounts, or both.
ICS can help banks to:
- Attract and retain large-dollar relationships with or without keeping the amount of the funds on balance sheet.
- Replace more burdensome and costly funding options (e.g., repo sweeps, letters of credit).
- Increase asset liquidity.
- Lower the risk of collateral-value deterioration.
- Keep the funding, or sell the excess for fee income.
- Purchase cost-effective floating-rate funding without collateralization.
ICS has earned the endorsement of the American Bankers Association.
How does ICS work?
Banks that offer ICS set the rate and maintain complete ownership of the customer relationship. Customers communicate with their bank’s service team and receive monthly statements from that bank.
1 If the customer chooses to use both the ICS savings option and the ICS demand option, the customer will need a separate transaction account for each option.
2 Per service option utilized.
Placement of customer funds through the ICS service is subject to the terms, conditions, and disclosures set forth in the agreements, including the ICS Deposit Placement Agreement, that a participating institution's customer enters into with that institution. Limits and customer eligibility criteria apply. Program withdrawals are limited to six per month when using the ICS savings option. ICS and Insured Cash Sweep are registered service marks of Promontory Interfinancial Network, LLC.