R&T Insured Deposits (RTID®) Program
Leverage Technology to Manage Cash Sweep Programs
With the R&T Insured Deposits (RTID®) program, broker-dealers and independent trust companies have the flexibility to configure a cash sweep program that meets their needs.
For over three decades, many of the largest broker-dealers in the U.S. have chosen insured deposit sweep programs over money market mutual funds; becoming the industry standard. The RTID program offers broker-dealers the ability to meet their customers’ needs to preserve principal, obtain access to expanded FDIC insurance coverage, earn competitive rates1 and maintain daily access2 to their cash.
For banks, RTID offers access to a stable, cost-effective source of wholesale deposit funding.
Offer your customers:
- Ability to access expanded FDIC deposit insurance coverage
- Daily liquidity2
- Interest rates that are competitive with other cash sweep options1
Benefits for Broker-Dealers & Independent Trust Companies
-
Simple to Manage: R&T is your single point of contact for support and account status.
-
Flexible: With R&T's proprietary technology and large network of receiving banks, you can customize the level of deposit insurance coverage offered to your customers.
-
Available for Many Account Types: The RTID program can accommodate a wide array of account types – including corporate and retirement accounts.
-
Rates/Yields: Rates are competitive with other sweep options.1
-
Seamless Implementation: We are integrated with most back office systems and our experienced team provides full implementation support.
Benefits for Banks & Credit Unions
-
Diversified Network: Receive deposits sourced from a wide range of programs, including some of the largest broker-dealers, clearing firms, and other financial institutions.
-
Simple to Manage: A single point of contact, regardless of the number of programs or accounts.
-
Tailored Funding: We’ll build a customized program to meet your bank’s specific needs based on its target balance for deposits and its preferred source of funds.
-
Flexible Pricing: We’ll design a pricing and contract structure that best suits your bank’s funding requirements, with multiple benchmark options, fixed and floating rate structures, and tenors ranging from overnight through 3 years.
-
Vendor Diligence & AML/BSA: Participating broker-dealers agree to comply with your bank's AML, KYC, Patriot Act, and OFAC requirements and provide you with necessary supporting documentation.
1 Under the RTID program, funds are deposited into demand deposit accounts (DDAs) or money market deposit accounts (MMDAs) at receiving institutions. Where your customer funds are held in MMDAs, the return of your customer funds from the RTID 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.
2 While interest rates obtained on funds placed at receiving institutions under the RTID program may, under certain circumstances, outperform cash alternatives, such as money market funds, the primary objective of the RTID program is to provide customers with convenient access to expanded FDIC insurance coverage on their funds (and not for investment enhancements or higher rates of returns or profits).
1 Under the RTID program, funds are deposited into demand deposit accounts (DDAs) or money market deposit accounts (MMDAs) at receiving institutions. Where your customer funds are held in MMDAs, the return of your customer funds from the RTID 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.
2 While interest rates obtained on funds placed at receiving institutions under the RTID program may, under certain circumstances, outperform cash alternatives, such as money market funds, the primary objective of the RTID program is to provide customers with convenient access to expanded FDIC insurance coverage on their funds (and not for investment enhancements or higher rates of returns or profits).
How It Works
Under the RTID program, the broker-dealer’s customer funds are placed into deposit accounts across a network of participating institutions, of up to $250,000 per customer identifier (e.g., TIN), providing access to expanded deposit insurance coverage on those funds up to a program limit.3
Our client portals provide system access to approve wires, view reports, access historical data and conduct reconciliation in one
convenient place.
3. Subject to the RTID Program Customer Terms & Conditions. Any funds placed into the RTID 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 laws and regulations, which may permit access).
R&T's Insured Deposit program was a ‘no-brainer’ for us. In the current interest rate environment, it allowed us to exponentially increase our clients' yield on cash, giving them an FDIC-insured sweep vehicle and equipping us to compete with RIAs and brokerage firms who are offering insured deposit sweep options. We are glad that we chose to partner with R&T.
President & CEO
Kentucky-Based Trust Company
Resources
Get In Touch.
We’re Here to Help You Reach Your Business Goals.