Insured Cash Sweep for Government Finance Officers
ICS®, the Insured Cash Sweep service, is a cash-management tool that provides government finance officers with access to multi-million-dollar FDIC insurance on your organization’s large deposits. The Insured Cash Sweep service is an excellent cash-management alternative to repurchase agreements, money market mutual funds, and other traditional vehicles where finance professionals park excess cash.
How Can It Help Me?
Market volatility does not have to be the end of opportunity. Thousands of governmental organizations have placed billions of dollars through Insured Cash Sweep, a service offered locally by thousands of financial institutions nationwide, to safeguard taxpayer money while earning a return. Insured Cash Sweep, enabled for use by public entities in all 50 states, offers:
Peace of Mind: Government finance officers looking for safety can use Insured Cash Sweep to access millions of dollars in FDIC insurance. No one has ever lost a penny of an FDIC-insured deposit.
Protection Against Market Loss and Money Market Mutual Fund Restrictions: Insured Cash Sweep deposits can be placed into demand deposit accounts or money market deposit accounts -- accounts that are not subject to floating net asset values, liquidity fees, or money market mutual fund liquidity gates. As a result, you and your organization can rest assured, knowing that market volatility will not negatively impact account value.
Compelling Yield Potential: Insured Cash Sweep deposits can earn returns that may compare favorably to Treasuries and government money market mutual funds (which, like FDIC insurance, are backed by the full faith and credit of the federal government), as well as prime money funds. Many Insured Cash Sweep customers appreciate the potential to earn prime-like returns with a federal government-like risk profile.1
Liquidity: Unlimited program withdrawals can be made from Insured Cash Sweep deposits placed into demand deposit accounts. A limit of six withdrawals per month applies for Insured Cash Sweep deposits placed into money market deposit accounts. Utilize both types of accounts to fit your government entity’s cash management needs.
Time-Savings & Ease: Work directly with just a single bank to secure funds and say “goodbye” to having to manually consolidate interest disbursements and balances. Also, forego requiring a bank to collateralize deposits (potentially receiving a lower rate as a result) and then having to track changing collateral values on an ongoing basis. And eliminate having uninsured deposits to footnote in financial statements.
How long will it take to set up?
Simple paperwork is required and can be done in a single sitting with any bank that is a member of the ICS Network. (Find a bank near you.)
How long is it available for free?
Banks do not charge customers any fees for using Insured Cash Sweep. The interest rate your bank sets is the interest rate you get.
How can I learn more?
Sign up for a free informational webinar on Insured Cash Sweep. Register today
Contact one of our Treasury Desk professionals at (866) 776-6426, ext 8553, or firstname.lastname@example.org. Or, call Steve Kinner, Senior Managing Director, at (866) 776-6426, ext. 3445 or email@example.com.
 Deposits placed using ICS earn interest at a rate set by the depositor’s relationship institution that places the funds. Rates will vary.
Placement of customer funds through the ICS service is subject to the terms, conditions, and disclosures set forth in the agreements that a participating institution’s customer enters into with that institution, including the ICS Deposit Placement Agreement. Limits and customer eligibility criteria apply. Unlimited program withdrawals are available with ICS only when using the ICS demand option. Bank Safe, Bank Smart; ICS; and Insured Cash Sweep are registered service marks of Promontory Interfinancial Network, LLC.