Setting ISA target balance
Updated November 10, 2026
Automating a target balance for Insured Sweep Accounts
NBID strives to provide bank partners with maximum flexibility for structuring customer accounts within the deposit network. A common point of inquiry is whether a $250,000 balance must be maintained in the client’s account to participate. This minimum balance requirement is ultimately up to the bank team to decide, and fully configurable on the bank’s core and/or via SFTP.
Common structures
When setting up Insured Sweep Accounts with target balances, partners typically choose from the following structures:
- In the ISA
- $0 after each daily sweep
- In the network
- All funds in the ISA, swept daily
- Day-to-day cash
- A Linked Operating Account
- In the ISA
- The $250,000 peg balance
- In the network
- Funds above the peg, swept daily
- Day-to-day cash
- The peg balance in the ISA
Zero-balance sweep accounts
In this setup, any customer funds that are placed in an Insured Sweep Account (ISA) are automatically swept into the network daily (on days the allocation is run), bringing the ISA balance back to zero. This approach enables our member banks' depositors to easily define what balances they want allocated throughout the network. Generally, this zero balance account (ZBA) approach will also require a Linked Operating Account or Companion DDA for the depositor’s day-to-day cash management needs. These Linked Operating Accounts are usually defined as part of the standard Terms & Conditions depositors agree to in the Account Agreements as they open their ISA.
Peg (target) balance accounts
Some banks prefer to retain a specified balance on their books in the ISA for day-to-day cash management needs. This peg balance is usually set at $250,000 in the customer's ISA to align with the standard deposit insurance limit while keeping cash immediately available. This means that if the customer's ISA balance goes above $250,000, the bank’s system will automatically trigger a daily sweep to allocate those funds throughout the network. If the customer withdraws funds from their ISA (e.g., by writing a check), then the bank’s system will automatically request those funds back from the network. NBID will only satisfy withdrawal requests for funds that are currently allocated in the network. This structure preserves a consistent balance that is readily available for the customer’s day-to-day cash management needs, while still offering access to additional insurance coverage on funds above the target.
Need a hand? Reach out to your NBID Regional Director or email support@nbid.com.