Protecting Your Large Deposits Through ICS®
Key Takeaway
- FDIC Insurance Limits: Understand the limitations of FDIC insurance coverage, which protects deposits up to $250,000 per depositor, per bank.
- Uninsured Deposits: Deposits exceeding the FDIC limit are uninsured, exposing them to potential risks in case of bank failure.
- IntraFi Solutions: ICS and CDARS® offered by IntraFi at New Omni Bank provide a safe and convenient way to protect large deposits while earning competitive interest rates.
- How IntraFi Works: At New Omni Bank, our ICS and CDARS solutions automatically distribute funds across FDIC-insured network banks, ensuring access to protection for your deposits.
- A list identifying IntraFi network banks can be found here. IntraFi is not an FDIC-insured bank, and deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply.
The Federal Deposit Insurance Corporation (FDIC) provides essential protection for bank deposits, insuring up to $250,000 per depositor, per bank. But what happens when your deposits exceed this limit?
The Risk of Uninsured Deposits
If you hold more than $250,000 in a single bank, only the first $250,000 per deposit, per bank, is protected by FDIC insurance. Any amount over that limit becomes uninsured, which can put your excess funds at risk in the event of bank failure.
How to Protect Large Deposits
Fortunately, there are ways to safeguard deposits that exceed the FDIC insurance limit. By utilizing ICS and CDARS solutions brought by IntraFi, the largest provider of deposit insurance services, you can access millions of dollars in aggregate FDIC insurance across network banks—without having to manage accounts at multiple banks.
What Are ICS and CDARS?
- ICS, Insured Cash Sweep®: ICS is ideal for businesses with large transactional balances (e.g., over $250,000) such as payroll or working capital. Your funds are placed into either Money Market Deposit Accounts (MMDA), Demand Deposit Accounts (DDA), or both, across FDIC-insured banks, ensuring your fund is safeguarded.
- CDARS, Certificate of Deposit Account Registry Service®: CDARS allows you to earn competitive interest rates in a CD account while enjoying access to aggregate FDIC insurance coverage, across network bank, on both personal and business deposits over $250,000.
A list identifying IntraFi network banks appears here. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply.
How Do CDARS and ICS Work?
1. You Deposit
Open a CDARS or ICS account at New Omni Bank and place a large deposit in it.
2. We Protect
Your funds are automatically distributed across FDIC-insured banks within IntraFi’s network, ensuring that no more than $250,000 is held at any one institution.
3. You Earn
If you choose CDARS or the MMDA option within ICS, you’ll earn competitive interest on your deposits.
Take Control of Your Financial Security
New Omni Bank offers both CDARS and ICS solutions to its clients, so you can rest assured that your savings have access to protection, into the millions in aggregate FDIC insurance across network banks.
Learn more or contact us today for more information.
Deposit placement through an IntraFi service is subject to the terms, conditions, and disclosures in applicable agreements. Deposits that are placed through an IntraFi service at FDIC-insured banks in IntraFi’s network are eligible for FDIC deposit insurance coverage at the network banks. The depositor may exclude banks from eligibility to receive its funds. To meet conditions for pass-through FDIC deposit insurance, deposit accounts at FDIC-insured banks in IntraFi’s network that hold deposits placed using an IntraFi service are titled, and deposit account records are maintained, in accordance with FDIC regulations for pass-through coverage. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA before settlement for deposits or after settlement for withdrawals. The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through an IntraFi service satisfies any restrictions on its deposits. IntraFi, the IntraFi logo, IntraFi Cash Service, ICS, CDARS, and Certificate of Deposit Account Registry Service are registered trademarks of IntraFi LLC.
