Pricing structures

Funds swept into the NBID network today generally yield effective federal funds rate (EFFR). Your institution has full discretion on what rate you pay to your customers in the program. NBID's Admin Portal allows you to set interest rates for each of your Insured Sweep Accounts. Rates can be fixed, floating, or tiered by balance, and Pricing Groups let you apply one rate structure to many accounts at once. This enables a few approaches to pricing structures:

Flat Rate

You can establish a set rate for all accounts.

Example: discount to Money Market. A bank currently offers a 0.40% APY Money Market Account today for clients with over $250,000 in deposits in their account. This bank can price the Insured Sweep Account at a slight discount to the Money Market Account (e.g., 0.30%, a 10 bps discount to 0.40% the current Money Market Account). The bank can dial this rate up or down as needed to achieve their client growth goals. It’s important to note that the 0.30% rate is illustrative and provided as an example of how a flat rate could be set for all clients.

Relationship-level Pricing

You can set account rates on an ad hoc basis, empowering your business services team to offer bespoke pricing for particularly high-value accounts. This could help you be competitive in winning significant funds and relationships.

Example: at the bank's discretion. The bank can use the Insured Sweep Account as a client retention and acquisition tool for extremely large-value accounts (e.g., winning public fund RFPs, large business accounts). The bank can offer bespoke pricing to these particularly large accounts based on the amount of business they are willing to bring over on an aggregate basis (e.g., deposits, cash management services, business lending, merchant, etc).

For ease of program management and unified marketing messaging, NBID recommends starting with a Flat Rate and/or Relationship-level Pricing.