R&T Insured Deposits (RTID®)

Leverage Technology to Manage Cash Sweep Programs

With R&T’s 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 rates and maintain daily access to their cash.

For banks, RTID offers access to a stable, cost-effective source of wholesale deposit funding.

Offer your customers:

  • Access to an expanded level of FDIC insurance
  • Daily liquidity
  • Interest rates that are competitive with other cash alternatives, such as money market funds*

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 banks, you can customize the level of FDIC insurance offered and the eligibility requirements for banks.

  • Available for Many Account Types: RTID can accommodate a wide array of account types – including corporate, international and retirement accounts.

  • Rates/Yields: Rates are competitive with other sweep options.*

  • 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.

*We provide recordkeeping and/or administrative services with respect to cash sweep and placement programs that we administer (e.g., the DDM and RTID programs). While customer rates obtained on funds placed into those programs may, under certain circumstances, outperform cash alternatives, such as money market funds, the primary objective of our services is to provide customers with convenient access to expanded FDIC and/or NCUSIF insurance coverage on their funds (and not for investment enhancements, or higher rates of returns or profits).

How It Works

Through our proprietary deposit management system, we analyze customer balance activity and the program insurance limits of our wealth management clients. We then, through the application of a non-discretionary algorithm, match the results of this daily activity against the available capacity offered through our network of participating banks. Finally, the broker-dealer, as a custodial agent, directs customer funds into deposit accounts held with FDIC-insured banks in increments below $250k, so that their customer balances are FDIC-insured up to the program limit.

R&T Fusion, our client interface and dashboard, provides system access to approve wires, view reports, access historical data and conduct reconciliation in one convenient place.

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

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