Insured Cash Sweep (ICS)
An ICS (Insured Cash Sweep) demand account is a type of deposit account offered by financial institutions that participate in the Promontory Network. The ICS service allows depositors to access FDIC insurance coverage on large deposits exceeding the standard insurance limit by spreading the funds across multiple banks within the network.
In the case of an ICS demand account, it typically offers the flexibility of unlimited withdrawals, making it suitable for businesses, municipalities, non-profits, and other entities that need immediate access to their funds while still benefiting from FDIC insurance coverage. This account type helps depositors maximize their FDIC insurance coverage while enjoying the convenience of liquidity.
Reasons to Select an ICS Account
Liquidity is a Priority
ICS offers greater flexibility and liquidity compared to CDARS. Depositors can access their funds in ICS demand deposit accounts without penalties or withdrawal restrictions, making it suitable for businesses and individuals with short-term liquidity needs.
Convenience
With ICS, funds are swept into demand deposit accounts (DDAs) at multiple banks within the ICS network, ensuring that the total deposit amount is covered by FDIC insurance. Depositors can access their funds as needed without incurring penalties or withdrawal restrictions.
Competitive Interest Rates
ICS demand deposit accounts offer more competitive interest rates compared to traditional business checking or savings accounts. While interest rates do vary, depositors can potentially earn higher yields on their funds placed through ICS.
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