Demand Deposit Marketplace® Program (DDM®)

Expanded Deposit Insurance Coverage. Configurable Cash Management Program.

The DDM® program enables financial institutions to strategically manage their balance sheet liquidity and deposit funding needs while offering customers access to expanded deposit insurance coverage.

The DDM program allows banks, trust companies, credit unions, and other financial institutions to provide their customers with access to expanded deposit insurance coverage on their funds through a network of participating receiving institutions.

It also helps institutions manage liquidity effectively, with rates competitive to other sweep options.¹ This flexible tool offers wholesale funding and a ‘reciprocal deposits‘ feature, allowing institutions to adjust the deposit amounts on their balance sheets as needed.

Offer Your Customers

Safety

Access to expanded deposit insurance coverage.

Liquidity

A daily liquidity alternative to money market funds.²

Rates/Yields

Interest rates comparable to other cash sweep options.¹

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)³, per receiving institution. This allows your customers to access expanded deposit insurance on their funds, up to the relevant program limit⁴, while maintaining daily access to their funds through their relationship with your institution.

*R&T has an internal Bank Review Team for verifying initial and ongoing capitalization of the Receiving Institutions. R&T does not provide bank monitoring services or advice to Participating Institutions.

NOTES:
The DDM program allocates customers’ funds to as many receiving institutions as necessary to provide access to deposit insurance coverage from the FDIC or NCUA up to the program limit.

“Receiving Institutions” are the insured depository institutions that can receive your customers’ funds under the DDM program. R&T offers the ability to place your customers’ funds at (i) receiving banks only or (ii) receiving banks and/or eligible credit unions. Currently, under the DDM program, only credit unions that are designated as “low income credit unions” (“LICUs”) can receive funds from sending institutions.

DDM for Depository Institutions Video

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DDM for Trust Companies Video

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Program Advantages

Whether your institution has excess liquidity, requires more deposits, or seeks to maintain current deposit levels while providing its customers with access to expanded deposit insurance coverage on their funds, the DDM program offers a configurable solution.

Additional Source of Funds:

Retain higher levels of insured, non-brokered reciprocal deposits and access to diverse wholesale funding.⁵
Attract Customers:

Strengthen relationships with existing customers and attract new customers, including corporations, public funds, HNW/UHNW individuals, and trust account customers.
Configurable:

Send, receive, or reciprocate deposits based on your business line or customer needs.
Simple to Manage:

Fully integrated with most core banking and trust accounting systems, providing online access to view daily balances.
Customer Information:

Supports masked data to reduce privacy concerns.

DDM Program Options

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

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

Reciprocal

Exchange deposits on a dollar for dollar basis

Provide access to expanded deposit insurance coverage
Send uninsured balances and receive deposits in return
Manage costs with non-brokered treatment⁵

Reciprocal Plus/Minus

Exchange deposits in any desired ratio

Provide access to expanded deposit insurance coverage
Dynamically increase or decrease deposit levels
Set reciprocal targets to send or receive balances above or below a target

¹ 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).

² 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.

³ 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.

⁴ 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).

⁵ Subject to applicable laws, regulations 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.

From Our Clients

“The sweep deposit program provides a diverse source of funding with flexibility around target balances to address our evolving funding needs over the years.”

Senior Vice President, Wholesale Funding & Liquidity
National Bank