Product capabilities and support

Depositors and accounts

1. Does NBID serve all types of depositors, or is this just for commercial clients?

   NBID accounts support a wide range of client and depositor types. NBID accounts can support: retail customers, high-net-worth individuals, business clients, commercial clients, nonprofits, public funds, and other depositor types. A few account types need additional review, so check with your Regional Director if you are unsure.

2. Does NBID support sweeping deposits off balance sheet?

   Yes, the NBID reciprocal deposit network supports three functions:

   • Reciprocal deposits: Where an institution sweeps deposits into the network to provide access to aggregate insurance to its clients and receives matching amounts back from the network, so it doesn't lose deposits in aggregate
   • Sweep: Where an institution moves deposits off balance sheet to manage its balance sheet size and earn potential fee income while providing access to aggregate insurance
   • Source: Where institutions take the other side of that equation and buy deposits from the network as an accessible wholesale funding source that can be used to fund loans and asset management, in addition to liquidity management

3. Does NBID offer CD-type accounts?

   NBID supports demand deposit accounts (DDAs) and money market deposit accounts (MMDAs). This means NBID supports checking and savings accounts, both for operating account purposes and longer-term savings.

Custody and client access

4. Who is the custodian of the NBID network?

   Northern Trust, one of the largest custodians in the US, serves as the custodial agent of the NBID reciprocal deposit network. Northern Trust has been supporting other reciprocal deposit network providers for approximately two decades. Northern Trust is well-experienced, well-regarded, and brings deep experience to the role.

5. Is there online access for customers to view their balances? How are statements and 1099s handled? Will NBID perform tax reporting for interest earned?

   NBID provides a depositor portal branded to your bank for customers to view their balances, allocations, and statements. Member banks can also take an integrated approach with NBID where clients can see their balances, statements, and allocations directly through the bank's existing digital banking products. Whether through digital banking or the portal, clients can see total balances, view allocation of funds in the network, track transactions, and access statements. Clients with Full Access in the Depositor Portal can also request withdrawals.

   Monthly statements are generated by NBID and delivered through the portal or through the bank's existing digital banking provider. They are white-labeled to the institution and show balances, interest, APY, and allocation of funds. NBID also prepares 1099s on your institution’s behalf, with your institution as the payor. They are provided to the client through the portal, shared with the institution, and shared directly with the IRS as needed.

Client rates

6. Does our bank have the ability to make decisions on client rates?

   Yes, the rate at which you price insured Sweep Accounts and the rate at which you pay your clients is completely up to you and your institution. In terms of pricing:

   • When reciprocating deposits in the network, you are earning on sent deposits and paying on received deposits, which net out. The only thing you pay is the network fee, and you decide the rate to pay clients.
   • When sweeping deposits into the network, you earn the network rate (which tracks the effective fed funds rate). You still have full agency over what to pay your clients, and any difference is margin for your institution in the form of fee income.
   • When receiving deposits from the network, you are charged the network rate (which tracks the effective fed funds rate).

7. Does NBID allow banks to index rates?

   Yes. In terms of determining rates for clients, the rate decision is ultimately up to the bank, but NBID supports multiple pricing strategies through its technology:

   • Setting singular rates for insured sweep accounts
   • Setting rates at the account level
   • Using relationship-based pricing at the group level to set rates for different groups
   • Tiering rates based on balances
   • Indexing rates to market indexes (most commonly setting a spread to effective fed funds) or to custom indexes your institution defines

   All these options are available within the Admin Portal, where you can add accounts, manage accounts, and update rates. More detail is in Setting account interest rates, Using floating rates, and Pricing groups.

Network and support

8. Would we be reciprocating funds with credit unions?

   No. The NBID network is a bank-only reciprocal deposit network of more than 800 member banks. Funds your institution sweeps are placed only at FDIC-insured banks.

9. Are there relationship managers that would be assigned? If so, what would be their role?

   Yes, NBID utilizes a dedicated team called Institution Success, comprising experienced Regional Directors. Institutions are assigned a lead Regional Director who acts as your point of contact. This Regional Director is supported by subject matter experts, solutions engineers, and your account executive. The Regional Director's role is to make you, your clients, and your program successful. This typically entails:

   • Understanding your institution and strategic goals: growth goals, client goals, and program goals
   • Helping you achieve those goals through: onboarding your institution to the network from an operational standpoint; ensuring everything is set up correctly (financial operations and technology); training your operations team; training your client-facing team; providing marketing assets (website content, one-pagers, FAQs, frontline staff training); working with you to identify clients, transition clients, onboard clients, and execute marketing campaigns; and growing your utilization and success in the network

   The Regional Director serves as your point of contact for customer support questions and is supported by dedicated engineers, subject matter experts, and account executives forming what NBID calls account teams to ensure questions, concerns, and issues are addressed promptly, typically the same day.