Insured Network Deposit Service

OUR FDIC-INSURED MULTI-BANK PROGRAM

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Our Program

In today's dynamic financial landscape, many investors are asking some critical questions before deciding where to put their liquid assets. How can I be sure my money will be safe? Will I have ready access to it in the event of a financial emergency? Will I receive dependable, ongoing interest income?

Our Program offers a powerful solution to your cash needs. The program enables you to safeguard a substantial portion of your assets through a highly liquid, interest-bearing account.

Dreyfus has entered into a strategic partnership with Promontory Interfinancial Network to offer our clients an FDIC-insured deposit sweep option. The IND(SM) Service is an FDIC-Insured, multi-bank deposit program that is designed to complement traditional money market mutual funds. The IND Service does not involve investment in a money market fund.  

What Are the Key Benefits of the Program?

  • $2.5 Million FDIC Insurance — The “Multi Bank” Investment Approach — Today, FDIC insurance covers both the principal and accrued interest in each bank account up to $250,000 per depositor for any member bank where money is deposited. The IND Service utilizes a multi-bank investment approach to significantly increase aggregate FDIC insurance coverage up to $2.5 million per individual by depositing customer assets among multiple banking institutions as determined by the customer’s available cash balance. These balances are not covered under SIPC. 
  • Tiered Interest Rates — Flexible rate tiering can enhance revenue to your firm. The product can be tiered by total cash balances, total assets (individual or household), market segment or service class. Customers have the potential of earning daily interest at higher rates based on the growth of their brokerage account balances. 
  • Daily Liquidity — Our Program provides you with daily liquidity so you can easily access your cash balance to meet short-term expenses or other funding needs. 
  • Easy Cash Management — Our Program can be integrated with checkwriting and debit card services offered through your financial organization, which provides a single account from which you can control all your investment, payment and withdrawal options.
  • Compliant with Federal Reserve Regulation D — The IND Service is compliant with Federal Reserve Regulation D, which limits the number of monthly withdrawals on interest-bearing Money Market Demand Accounts (MMDAs). The program uses a dual bank account design that links an MMDA account to a Transactional Account (TA) to provide seamless integration with asset management account services that require daily liquidity.

 

Understanding the Jargon

  • What is the FDIC? The Federal Deposit Insurance Corporation (FDIC) is an independent government agency created by Congress in 1933 to maintain stability and confidence in the nation’s banking system. The agency insures deposits and retirement accounts in member institutions up to $250,000 per depositor.
  • What is a "Bank Deposit Sweep" Program? A bank deposit sweep is a program that, at the close of each business day, automatically transfers (“sweeps”) balances between your brokerage account and one or more bank accounts as applicable, while providing daily interest on cash balances. The goal is to keep customers’ assets working and maximize investment return in a conservative and efficient manner.

How Does the Program Work?

  • The “Multi-Bank” Approach — Today, FDIC insurance covers both the principal and accrued interest in each bank account up to $250,000 per depositor,  for each FDIC-member bank where money is deposited. This investment approach to significantly increase your total FDIC insurance coverage up to $2.5 million. This is accomplished by depositing your assets among multiple participating institutions (program banks) as determined by your available cash balance. To ensure that your balance (plus accrued interest) receives full FDIC coverage, the program limits the principal amount of your assets held at any one institution..
  • Bank “Opt Out” Option — The IND Service utilizes a priority list of available banking institutions to determine the order in which customer assets are to be deposited. Since you may already have FDIC-insured deposits at some of these institutions, the program allows you the flexibility to “opt out” of a bank on the priority list — in other words, to designate a bank as ineligible to receive your deposits at any time.*
  • When you opt out of a bank, your cash balances default to the next bank on the priority list, ensuring that your deposits will be fully insured up to the regulatory limit per individual per bank.
  • Account Eligibility — The IND Service can be offered to individual and joint accounts as well as certain types of retirement accounts, including IRAs, Section 457 plans and self-directed Keogh plans.

How Does the Program Work

The IND Service is a product of Promontory Interfinancial Network, offered herein through a private labeling arrangement with Dreyfus. Promontory Interfinancial is 40% owned by The Bank of New York Mellon Corporation and is an affiliate of Promontory Financial Group, a major provider of regulatory consulting to banks, broker/dealers and other financial services firms. Unlike the IND Sweep Service, which offers FDIC insurance on cash deposits, money market mutual funds are not FDIC-insured and involve risk to principal.

*A customer is responsible for monitoring the total amount of deposits held with any one bank, directly or through an intermediary, in order to determine the extent of deposit insurance coverage available on their deposits, including the Dreyfus Insured Deposit Program. Neither Dreyfus, your Introducing Financial Institution (“IFI”) nor your IFI’s clearing agent is responsible for any insured or uninsured portion of the Dreyfus Insured Deposit Program accounts or any other deposits held outside the product.

CIS-33182-2018-07-30