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Drive Deposit Growth withReciprocal Deposits

The Demand Deposit Marketplace® (DDM®) program allows banks and other depository institutions to take advantage of the reciprocal feature to satisfy the deposit insurance coverage needs of its customers, retain access to valuable deposits, and reduce the level of uninsured deposits reported on their balance sheet.

  • Access to expanded deposit insurance coverage.

  • An alternative to money market funds that provides daily liquidity.1

  • Interest rates that are competitive with other cash sweep options.2

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Program Advantages

The Demand Deposit Marketplace® (DDM®) provides your institution with a seamless way to offer its customers access to expanded deposit insurance coverage from the FDIC or NCUA on their funds while strategically managing its balance sheet – by allocating their funds across our extensive network of receiving institutions.

  • Offer customers access to expanded deposit insurance coverage

  • Access alternative sources of funding

  • Manage your balance sheet liquidity levels

  • Easy set up, integrates with bank platforms

  • Private label capability

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Program Options

The DDM program offers four types of deposit relationships, providing flexibility to adjust deposit levels on your balance sheet:

Reciprocal

Exchange deposits on a dollar for dollar basis

  • Provide access to expanded deposit insurance coverage

  • Send uninsured balances and receive deposits in return

  • Non-brokered treatment (up to $5 billion or 20% of liabilities)3

Reciprocal Plus/Minus

Exchange deposits in any desired ratio

  • Access to deposit insurance coverage

  • Dynamically increase or decrease deposit levels

  • Set reciprocal targets to send or receive balances above or below a target

Send-Only

Send excess deposit balances

  • Provide access to expanded deposit insurance coverage

  • Generate fee income

  • On-demand funding for balance sheet deposits

Receive-Only (Funding Solutions)

Receive deposit funding

  • Diversify wholesale funding sources

  • Fund loan demand

  • Strengthen balance sheet and supplement contingency funding plans

How It Works

Cash balances from your customers’ accounts are swept into the DDM program and allocated into deposit accounts at participating receiving institutions in increments of up to $250K per customer identifier (e.g., TIN)4, per receiving institution. This allows your customers to access expanded deposit insurance coverage on their funds, up to the relevant program limit5, while maintaining daily access to their funds through their relationship with your institution.

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1 Under the DDM 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 DDM 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.

2 While interest rates obtained on funds placed at receiving institutions under the DDM program may, under certain circumstances, outperform cash alternatives, such as money market funds, the primary objective of the DDM 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).

3 Subject to applicable laws, regulation and rules relating to brokered deposits, including 12 CFR 337.6. R&T makes no representations or warranties, express or implied, with respect to an institution’s classification of deposits as brokered or not brokered. Such determination is entirely and solely the responsibility of that institution.

4 Under the DDM Program, your institution may be permitted to allocate your customers’ funds to participating receiving institutions in increments of up to $250K per customer identifier(e.g., TIN), per account ownership category, per receiving institution, subject to approval and relevant agreements with R&T.

5 Subject to the DDM Program Customer Terms & Conditions. Any funds placed into the DDM Program above the program limit (being excess funds) are placed into deposit accounts at excess receiving institutions and are not eligible for access to deposit insurance coverage (subject to FDIC/NCUA laws and regulations, which may permit access).

From Our Clients

“R&T has enabled our Trust Department to enhance the value we deliver to our customers. Best of all, IDP offers us the flexibility to be used across a range of customer accounts or with select portfolios based on a customer's unique investment needs.”

SVP, Director of Trust and Asset Management
New Jersey-based Bank/Trust Company

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