Frequently Asked Questions
Where can I find an institution that offers IntraFi®SM, formerly named Insured Cash Sweep®, or ICS® ?
Check with your financial institution to see if it offers IntraFi Network Deposits, or visit the Find A Bank
page to find a local institution that does.
How can deposits greater than the standard FDIC insurance maximum be eligible for insurance by the FDIC?
The FDIC insures up to $250,000 of a customer’s deposit accounts in a given insurable capacity at an FDIC-insured depository institution. Banks that offer IntraFi Network Deposits, formerly ICS, are members of IntraFi’s network of financial institutions. When your funds are placed through IntraFi Network Deposits, they are divided into amounts under the standard FDIC maximum and placed with other network members—each an FDIC-insured institution. This makes your deposit eligible for FDIC insurance at each member bank. By working directly with one network member, you can access insurance through each FDIC-insured institution.
Is the IntraFi Network Deposits safe to use? Has it been thoroughly tested?
IntraFi Network Deposits 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 IntraFi Network Deposits.
Use of IntraFi Network Deposits makes it possible for depositors to gain access to multiple millions of dollars of FDIC insurance on funds that are placed in demand deposit accounts, money market deposit accounts, CDs, or any combination of these three account types. And, no depositor has ever lost a penny of FDIC-insured deposits.
The service is offered by IntraFi Network (formerly Promontory Interfinancial Network), a trusted fintech provider chosen by more than 3,000 banks across the nation and has received an exclusive endorsement from the American Bankers Association.
Who has custody of my funds?,/strong>
Funds placed through IntraFi Network Deposits are deposited only in FDIC-insured institutions. Your bank acts as custodian for your deposits placed using IntraFi Network Deposits, and the subcustodian for the deposits is the Bank of New York Mellon (BNY Mellon), the largest custodian in the world with $41.1 trillion in assets under custody and/or administration and $2.2 trillion in assets under management.1
Who provides the additional FDIC insurance when my funds are placed using IntraFi Network Deposits?
Through IntraFi Network Deposits, funds are placed in deposit accounts at members of IntraFi’s network of financial institutions, and those network members provide you with access to the additional FDIC insurance coverage. Working directly with just one bank, you can access coverage through many FDIC-insured institutions.
Is my account information safe?
Your confidential information remains protected; your relationship remains between you and your financial institution.
Has the FDIC weighed in on the usage of such programs?
Since the creation of the FDIC more than eight decades ago, depositors have always had the option of depositing funds at multiple FDIC-insured banks to gain access to deposit insurance coverage in excess of the standard single-bank insurance amount, which is now $250,000. The FDIC has always known of this practice and at times has even encouraged it. Deposit placement services, such as IntraFi Network Deposits, help depositors to achieve the same familiar result more easily and with added benefits, such as providing banks the opportunity to promote local lending through reciprocal deposits that the depositor’s bank receives in return for deposits placed at other banks.
The FDIC routinely acknowledges that deposit placement services can be used to provide access to expanded deposit insurance coverage. For example, in a 2016 “Frequently Asked Questions” document, the FDIC specifically described how a participating bank can place funds at other participating banks through a bank network to give its customer full insurance coverage on a deposit in excess of $250,000. Moreover, in 2018, the Economic Growth, Regulatory Relief, and Consumer Protection Act was signed into law. Section 202 of the Act defines reciprocal deposits and, subject to statutory limitations, provides that certain reciprocal deposits are deemed not to have been obtained by or through a deposit broker. The FDIC subsequently issued regulations implementing the Act’s requirements.
Some banks receiving deposits placed through an IntraFi Network product have failed during IntraFi Network’s history;and every resulting claim for deposit insurance has been paid in full by the FDIC.
IntraFi Network Deposits has been thoroughly tested, and reciprocal deposit placement services are recognized both in the FDIC regulations and in state statutes and regulations throughout the United States.
1 As reported by BNY Mellon in December 2020. Please see www.bnymellon.com/us/en/who-we-are/index.jsp for details.
2 When deposited funds are exchanged on a dollar-for-dollar basis with other banks that use IntraFi Network Deposits, a bank can use the full amount of a deposit placed through IntraFi Network Deposits for local lending, satisfying some depositors’ local investment goals or mandates. Alternatively, with a depositor’s consent, and if authorized under state law, a bank may choose to receive fee income instead of deposits from the banks. Under these circumstances, deposited funds would not be available for local lending.