What Are IntraFi Network Deposits℠, and What Are the Benefits?

| May 12, 2023 | By

Imagine that you have a significant amount of money deposited with your bank and you’re keenly aware that your assets may not be eligible for FDIC coverage.

Through the Federal Deposit Insurance Corporation (FDIC), the government usually covers up to $250,000 per ownership category per institution. This gives you confidence that your money is secure if your insured bank fails. This is a big reason why people decide to use banks in the first place.

Maybe you don’t have to pretend you’re in this situation. For example, you may represent an institution with assets over $250,000—or your family may have large amounts of saved money. Perhaps you’re a retiree with access to a lifetime of retirement savings. You need a way to make sure that money is safe. What if we told you there’s a way to access multi-million-dollar FDIC insurance while retaining the convenience of working with a single bank? IntraFi Network DepositsSM can help.

IntraFi Network DepositsSM 101: How The System Works

IntraFi Network DepositsSM allows clients to use strategic banking services that let you spread your money across multiple banks within the network.

This allows you to access FDIC insurance and several other critical benefits of modern banking—even with more considerable funds that would otherwise be complicated to manage. 

What kind of accounts can you open through IntraFi Network DepositsSM?

  • Insured cash sweep (ICS®) accounts are money market or demand accounts that allow depositors to spread their funds across a network of member banks. Depositors get FDIC insurance and their funds remain liquid, so the depositor can still access that money if needed.
  • Certificate of deposit account registry service (CDARS®) accounts similarly allow depositors access to insurance. In this case, the depositor agrees to leave their money in the account for a specific length of time in exchange for competitive insurance rates.

This may sound great ... but how does this system work? 

Institutions that are members of the IntraFi Network DepositsSM system offer these services. After you sign up, your bank will place your funds into ICS® or CDARS® accounts and divide your deposit into amounts under $250,000. Your FDIC-eligible funds are then placed in qualifying money market or certificate of deposit accounts at other member banks. 

You get access to FDIC coverage through several institutions while working with your familiar community bank. You’ll receive one statement and you’ll speak with one team if you’re interested in updating your depositing strategy.

What are the Benefits of IntraFi Network DepositsSM?

Depositors who use IntraFi Network DepositsSM can access the benefits of working with multiple banks, enjoy peace of mind from knowing their funds are secured, and experience the convenience of interacting with one banking institution.

When you use IntraFi Network DepositsSM, you:

  • Access multi-million-dollar FDIC insurance.
  • Forego the need to track your assets across multiple institutions manually.
  • Retain access to your money if you opt for the ICS® service.
  • Earn competitive interest on your money if you select CDARS® accounts.

Best of all, when you use IntraFi Network DepositsSM through your local community bank, you’re supporting your community. The funds that your bank places through CDARS® and ICS® accounts stay local, supporting lending opportunities and economic growth near you.

Are IntraFi Network DepositsSM Safe?

Yes, IntraFi Network DepositsSM are safe. Depositors’ access through this system is insured by the FDIC.

In fact, there’s a strong argument that funds deposited through IntraFi Network DepositsSM are safer than many alternatives. Because your funds are distributed across multiple partner institutions through this program, your risk of losing that money is significantly reduced. 

How much can you deposit in IntraFi Network DepositsSM? It depends on your bank’s policies, so talking with your local banking team is the best way to answer this question. But rest assured that the ceiling is far higher than the typical FDIC limit of $250,000.

How to Get Started with IntraFi Network DepositsSM

Accessing these services is straightforward. Here’s what to do:

  • Talk with your trusted banking partners to learn how they facilitate IntraFi Network DepositsSM.
  • Sign a deposit placement agreement.
  • Select an ICS® or CDARS® service.

Your bank will then place your funds accordingly and you can relax knowing you’re managing your money safely, securely, and strategically.

Interested in IntraFi Network DepositsSM? BNC National Bank Can Help

Whether you’re a pro at managing your finances strategically or curious about what it takes to get started with IntraFi Network DepositsSM, BNC National Bank is here for you.

Schedule a meeting with our team to discuss IntraFi Network DepositsSM today! We look forward to supporting you and your financial journey.

Deposit placement through CDARS or ICS is subject to the terms, conditions, and disclosures in applicable agreements. 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 (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through CDARS or ICS satisfies any restrictions on its deposits. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. The depositor may exclude banks from eligibility to receive its funds. IntraFi and ICS are registered service marks, and the IntraFi hexagon and IntraFi logo are service marks, of IntraFi Network LLC.

BNC National Bank, Member FDIC, Equal Housing Lender

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