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    ICS® Frequently Asked Questions

    How can ICS make funds eligible for FDIC insurance in excess of the standard maximum deposit insurance amount?

    Financial institutions that offer ICS, the Insured Cash Sweep® service, are members of the Promontory Network. The FDIC insurance coverage available through ICS is provided by the Promontory Network members at which the customer’s funds are held. The customer funds are placed into demand deposit accounts or money market deposit accounts at Network banks, each in an amount less than the standard FDIC insurance maximum of $250,000. Working directly with just one relationship institution, a customer can access FDIC insurance coverage from many. 

    Is the Insured Cash Sweep, or ICS, service safe to use? Has it been thoroughly tested?

    The Insured Cash Sweep service has been thoroughly tested (with many billions of dollars) and has been designed so as to comply with every relevant FDIC requirement. Since its inception, thousands of depositors have successfully submitted funds for placement through ICS. Use of the Insured Cash Sweep service makes it possible for depositors to become eligible for multiple millions of dollars of FDIC insurance on funds that are placed in demand deposit accounts, money market deposit accounts, or both. And, no depositor has ever lost a penny of FDIC-insured deposits. The service is offered by Promontory Interfinancial Network, a trusted fintech provider chosen by more than 3,000 financial institutions across the nation, and has received an exclusive endorsement from the American Bankers Association, following a comprehensive due-diligence review process. Banks interested in obtaining a copy of the ABA's ICS Due Diligence report can request one.

    How much can I place for a single depositor right away?

    While ICS is currently available to provide access to FDIC insurance coverage beyond $250,000 and while overall limits and weekly sub-limits do apply, with notice, we frequently can accommodate requests to place tens of millions of dollars at a time. Just contact Promontory Interfinancial Network's Treasury Desk at (866) 776-6426 (Option 1, then Option 3) to initiate a discussion. Network members can get the current limits by visiting the secure Transaction & Reporting Portal's Limits and Product Terms.

    Are reciprocal deposits received by a bank using ICS considered to be brokered deposits?

    The Economic Growth, Regulatory Relief, and Consumer Protection Act, signed into law in May 2018, provides that most reciprocal deposits are no longer treated as brokered deposits. Under the law, for a well-capitalized bank with a CAMELS rating of 1 or 2, reciprocal deposits up to the lesser of $5 billion or 20% of the bank’s total liabilities are not considered brokered. (Reciprocal deposits over these amounts are allowed, but are treated as brokered.)
    Now that most reciprocal deposits are nonbrokered, many banks are increasing their use since reciprocal deposits are typically a cost-effective way to grow funding, especially compared to collateralized deposits and wholesale funding. Find out what some bankers are saying about their experience with reciprocal deposits.

    Does the FIL-29-2010 that was issued by the FDIC on June 7, 2010 address ICS?

    We are not a “third-party affinity group" or "trade association” referenced in the letter. However, the letter more broadly discusses principles that apply to the placement of deposits. We have always operated ICS in accordance with the principles outlined in the letter and will continue to do so. For more information, please click here.

    Can I speak to a Network member about its experience using the ICS service?

    Several members of the Promontory Network would be happy to talk with you about how ICS has created positive results for their institutions. Call Promontory Interfinancial Network's Treasury Desk at (866) 776-6426 (Option 1, then Option 3) for information on Network member experiences, or get an overall snapshot of how institutions that offer ICS are benefiting from the service by visiting the Testimonials page.

    Whom should I contact to learn about joining the Promontory Network?

    It is easy to become a member of the Promontory Network. When your firm becomes a Network member, it can offer ICS and enjoy other member benefits. To learn more, talk to us today. Call (866) 776-6426 (Option 1, then Option 3) Monday-Friday 8:30 AM -6:30 PM ET or email with your relevant contact details so we can follow up, and we will help you get started. It's that simple.

    Does Promontory Interfinancial Network provide support after my financial institution joins the Promontory Network?

    Yes. Promontory Interfinancial Network provides implementation and operational support to all Promontory Network members. A business development team, which includes a Regional Director and a Treasury Desk Manager, is assigned to every Promontory Network member to assist with the member with its sales and marketing activities. A Client Services team is available for operational assistance and troubleshooting. Additionally, Promontory Interfinancial Network provides accounting training, support webinars, and an online Marketing Resource Center that houses getting-started guides and both customizable and turnkey marketing materials.

    In general, institutions that have joined the Promontory Network have been very satisfied with their experiences. (Promontory Interfinancial Network recently conducted a survey with assistance from an independent research firm. Among its many extremely positive findings, the research firm indicated that all respondents were satisfied with the company’s ICS service and that 99% of respondents reported above-average satisfaction with ICS.) Read more about Promontory Network member experiences in the What Others Say or Testimonials sections.

    Is integration through my bank’s core processor available?

    ICS offers integration with all major service providers, such as CSI, DCI, D&H, FIS, Fiserv, and Jack Henry & Associates, Inc. ICS integration options through your bank’s core processor can provide time savings, ease of entry, reduced likelihood of manual data entry error, and enhanced reporting capabilities. Contact the Client Services team at (866) 776-6426 (Option 1, then Option 1) for more information.

    Use of the ICS service is subject to the terms, conditions, and disclosures set forth in the applicable program agreements, including the CDARS-ICS Participating Institution Agreement and applicable Deposit Placement Agreement. Limits and customer eligibility criteria apply. ICS program withdrawals are limited to six per month when using the ICS savings option.  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.

    Insured Cash Sweep and ICS are registered service marks of Promontory Interfinancial Network, LLC.