How do Insured Sweep Accounts work?

Suppose you have a customer with $1 million in deposits that is safety conscious. Using an Insured Sweep Account, you can provide the client with a single account that offers access to millions in aggregate insurance across network banks*.

To make balances in the Insured Sweep Account eligible for insurance, funds are distributed to other banks in the NBID network in increments below the $250,000 Standard Maximum Deposit Insurance Amount. In this example, $250,000 stays with your bank and the remaining $750,000 is swept into the network in amounts not exceeding $250,000 at each of Bank B, Bank C, and Bank D. By placing less than $250,000 at each bank, the entire account balance is eligible for insurance coverage (provided certain pass-through conditions are met). With reciprocation, your bank receives $750,000 in deposits back from the network, so the full $1,000,000 stays on your balance sheet.

Using Insured Sweep Accounts allows your bank to attract and retain large-value customers such as businesses, public funds, and higher-net-worth individuals. For your clients, it eliminates the need to keep track of multiple accounts at various banks. All transaction activity and network allocations are consolidated into one simple statement for clients.

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