THE PROBLEM
& THE SOLUTION
Having FDIC insurance for your business's deposit dollars is a great thing. There’s no need to ask for it, either. When you deposit your money with an FDIC-member bank, most accounts include this insurance coverage, up to $250,000 per depositor.
But what happens when your business has more than the maximum amount covered? Common sense says you’d like all of your deposit dollars insured. Fortunately, there are services that can help.
When your account balances top the FDIC maximum insured coverage limit, creative programs like Insured Cash Sweep® and the Certificate of Deposit Account Registry Service®, or ICS and CDARS for short, can be the answer. With these two services, you can maintain multi-million-dollar FDIC coverage within a single banking relationship.
Simply put, amounts less than the standard FDIC insurance maximum of $250,000 are divvied into accounts at other financial institutions, allowing you to rest easy knowing both your principal and interest are fully insured.
This is a great solution because it allows you to maintain a single banking relationship but utilize as many accounts across network banks without actually spending countless hours managing several accounts at multiple financial institutions. Instead, all of the funds from your one account can be swept in and out of accounts across the ICS network, all while maintaining balances that ensure FDIC protection for your funds.
Whether markets feel stable or rocky, these products can be a great option for you and your business. Plus, you can continue earning interest in a convenient and safeguarded way.
