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    Most Reciprocal Deposits Are Core


    Reciprocal deposits have historically been a cost-effective way for banks to build a stable balance sheet and acquire more funds to lend. A new law, the Economic Growth, Regulatory Relief, and Consumer Protection Act, provides that most reciprocal deposits are no longer treated as brokered deposits. (See the full text of the law here.) This presents an even greater opportunity for banks to use reciprocal deposits to grow high-value relationships and franchise value.

    [Read about what reciprocal deposits are and why they matter to banks and their communities.]

    ICS® Reciprocal and CDARS® Reciprocal—Chosen by Thousands of Banks

    Promontory Interfinancial Network, the company that invented reciprocal deposits, offers two reciprocal deposit placement services: ICS Reciprocal and CDARS Reciprocal. With these services, your bank can offer access to FDIC insurance beyond $250,000 for funds placed into demand deposit accounts or money market deposit accounts using ICS, or into CDs using CDARS.

    Reciprocal Deposits Can Boost Deposit Growth and Local Lending

    Grow Deposits and Manage Funding

    Now that the law has passed, banks can use CDARS Reciprocal and ICS Reciprocal to

    • attract even higher amounts of stable, relationship-based funding;
    • reach out to even more customers and seek business at even higher levels than before;
    • make more loans in the local community; the full amount of reciprocal deposits can be used for this purpose; and
    • replace more expensive deposits, like routinely collateralized deposits and those from listing services (generally associated with wholesale pricing and no loyal or local customer relationship).

    Want to Learn More about How the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 Impacts Reciprocal Deposits?

    Banks can find out about the many benefits of ICS and CDARS by registering for a free webinar.  

    Information for depositors, including how to locate a bank that offers CDARS and ICS, is available at