ICS One-Way Sell for Banks
What is ICS One-Way Sell?
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 in demand deposit accounts, money market deposit accounts, or both. With ICS® One-Way Sell®, Promontory Network members can move deposits off balance sheet by selling their excess ICS deposits to banks that desire funding. (Looking to grow on-balance-sheet deposits or thinking you might want to in the future? Then, please see ICS Reciprocal, which enables banks to exchange deposits with other banks on a dollar-for- dollar basis and know that institutions can switch back and forth between keeping and selling deposits as their liquidity needs change.)
WHY DO BANKS CHOOSE ICS ONE-WAY SELL?
With ICS One-Way Sell, a bank can
- Attract new customer relationships and continue building franchise value during periods of high liquidity by taking excess funds off balance sheet
- Earn fee income and increase profitability, as well as return-on-assets and return-on-equity ratios
- Take larger deposits than it otherwise might want to take and enhance the overall relationship without causing potential concentration problems
- Enjoy flexibility knowing that, if its liquidity position changes, it can switch back to using ICS Reciprocal and receive matching deposits, instead of fee income, for its placements
How Does ICS One-Way Sell Work?
Banks that offer ICS are members of the Promontory Network. When a bank places a depositor's funds through ICS, the funds are sent from a transaction account at a member bank into deposit accounts at other FDIC-insured member banks. By working directly with just one bank, a depositor can access FDIC coverage from many.
With ICS One-Way Sell, the bank can earn fee income for placing deposits with banks that need funding. The relationship bank sets the interest rate and maintains ownership of the depositor relationship.
Customers like ICS because it offers safety, returns, and the convenience of working directly with just one bank. With all ICS transactions, the customer’s confidential information remains protected.
Discover What Differentiates Insured Cash Sweep
Download a summary of how ICS differs from competing offerings
Promontory Network will use your information solely to provide you with information about Promontory Network services. We will not provide your personally identifying information to third parties.
In addition, banks can find out more about ICS by registering for a free webinar, ICS and CDARS®: Taking Advantage of New Opportunities.
If a depositor is subject to restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the depositor to determine whether the placement of the depositor’s funds through ICS, or a particular ICS transaction, satisfies those restrictions.
Use of the ICS service is subject to the terms, conditions, and disclosures set forth in the CDARS-ICS Participating Agreement and the applicable Deposit Placement Agreement. Limits and customer eligibility criteria apply. Program withdrawals are limited to six per month when using the ICS savings option. ICS, Insured Cash Sweep, One-Way Sell, and CDARS are registered service marks of Promontory Interfinancial Network, LLC.