- Work directly with a single bank to make large deposits (not just the first $250,000) eligible for FDIC protection and feel good knowing that no one has ever lost a penny of FDIC-insured funds.
- Forego maintaining multiple bank relationships or opening accounts in different insurable capacities (which may require manually consolidating statements and calculating blended rates) in favor of receiving just one statement and earning a single rate on your entire deposit.
- Forego requiring a bank to collateralize your deposit (potentially receiving a lower rate as a result) and having to track changing collateral values on an ongoing basis.
- Put excess cash balances to work earning rates that may outperform alternatives, like U.S. Treasuries or government money market mutual funds.
- Avoid potential drawbacks that come with money market mutual fund alternatives — liquidity gates, liquidity fees, and/or a share price that may fall below $1.00.
- Maintain daily liquidity for funds placed into demand deposit accounts, or access funds placed into money market deposit accounts up to six times per month.
- Support your community; if you work with a local bank, that bank can use the full amount of deposited funds to support local lending opportunities. Alternatively, you can work with a Community Development Financial Institution that offers ICS, helping a bank located in an economically disadvantaged community to make loans for critical initiatives, like producing affordable housing, financing small businesses, creating jobs, and expanding neighborhood facilities that provide much-needed services for low-income families (learn more).
There are many great reasons to use ICS. It's the perfect solution for many businesses, non-profits, and governmental organizations (e.g., cities and counties, public schools, police and fire districts), as well as fiduciaries, advisors, socially responsible investors, and individuals. Learn How ICS Works and visit the customer Case Studies and Testimonials for real-life examples of ICS in action.
How ICS Compares to Other Cash Management Alternatives
||May or may not earn interest, and funds are insured only up to $250,000 per insured capacity, per bank
||You Can Have It All – Enjoy Access to Multi-Million-Dollar FDIC Insurance through a Single Bank Relationship
||Backed by the full faith and credit of the federal government but could earn a lower yield on an investment that carries a similar risk profile
||May earn interest, but the yield can be very low; the process carries administrative tracking burdens; and the investment is not backed by FDIC insurance
||Administrative tracking problems can be more onerous than with repo sweeps, and only certain types of deposits can be collateralized
|Money market mutual funds
||Earn interest, but the yield may be very low; the investment is not backed by the full faith and credit of the federal government; and some prime funds are subject to floating net asset values, liquidity fees, and MMMF redemption gates