R&T Deposit Solutions Joins American Bankers Association’s Premier Partner Network
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Liquid Insured Deposits (LIDs) is a leading insured sweep program that enables your customers to protect their cash holdings with access up to $2.5 million of FDIC insurance coverage. With cash allocations and the demand for expanded deposit insurance at high levels, Liquid Insured Deposits can help your firm remain competitive in its offerings and provide a tool for financial advisors to gather assets and grow their books of business.

Quick Facts

  • LIDs can be an effective asset gathering program and could be an important component of your business for your high net worth, retiree, business, and offshore customers by offering access up to $2.5 million in FDIC insurance coverage

  • Daily Liquidity1

  • Eliminates some risks associated with some money market mutual funds, such as liquidity fees

1Under the Liquid Insured Deposits program, funds are deposited into demand deposit accounts (DDAs) or money market deposit accounts (MMDAs) at receiving banks or share draft accounts or share accounts at receiving credit unions. While your customers’ funds are held in MMDAs or share accounts, the return of your customers’ funds from the Liquid Insured Deposits program may be delayed as, under federal regulations, the receiving institution is permitted to impose a delay of up to seven days on any withdrawal request from an MMDA or share account.

How it Works

  • LIDs can be an effective asset gathering program and could be an important component of your business for your high net worth, retiree, business, and offshore customers.

  • Liquid Insured Deposits works in a similar manner to a money fund sweep. However, instead of available cash in your clients’ accounts being swept into money market mutual funds, it is sent daily into deposit accounts held at FDIC-insured banks in the program.

Program Advantages

FDIC Protection

Receive up to $2.5 million in FDIC protection ($5 million for joint accounts); cash balances up to the program maximum are guaranteed by the FDIC, which is backed by the full faith and credit of the U.S. Treasury

Simplicity

FDIC-insured accounts are outside of the scope of money market mutual fund reform, which enables you and your clients to spend more valuable time focusing on preserving and growing wealth instead of analyzing the outcome of regulatory mandates

Eligibility

LIDs is available to a variety of account types, including individual, joint, corporate/business, public funds, IRA, UGMA/UTMA, offshore, and trust accounts

Flexibility

Tiered interest rate structure is available so you can reward clients that have placed larger amounts with your firm with potentially higher returns2

Convenience

Daily liquidity allows your clients to access their cash when needed

2While interest rates obtained on funds placed at receiving institutions under the Liquid Insured Deposits program may, under certain circumstances, outperform cash alternatives, such as money market funds, the primary objective of the Liquid Insured Deposits program is to provide customers with convenient access to expanded deposit insurance coverage on their funds (and not for investment enhancements or higher rates of returns or profits).