An Insured Cash Sweep (ICS) account is an easy way to protect your business deposits over $250,000. But how does it work? Learn this and more with these five frequently asked questions.
How does an Insured Cash Sweep account work?
If you want to protect deposits of more than $250,000 (the standard FDIC insurance coverage amount), you can use an ICS account to deposit your money automatically through a network of pre-selected, highly rated banks. Just open your ICS account with Merchants Bank and we do the rest.
An ICS account can be structured as a checking account with our ICS Demand Checking or as a savings account with our ICS Money Market Savings. Both accounts earn interest, allow for unlimited deposits and have no minimum balance requirements.
Why would an ICS account be better than using multiple banks?
Skip the running around and paperwork. With an ICS, you only have to open one account at Merchants to take advantage of the automatic, additional FDIC insurance coverage through the ICS network of banks. Plus, you’ll only have one statement to review.
Who has custody of my funds?
Funds placed through an Insured Cash Sweep are deposited only in FDIC-insured banks. Merchants Bank acts as custodian for your ICS deposits.
How safe is my information and the ICS service?
As always, Merchants Bank takes protecting your information seriously. Your confidential information is not shared with the ICS bank network.
The ICS program has been designed to comply with all FDIC requirements. You can be confident that your deposits are safe and sound.
Are there other account options similar to ICS?
Merchants Bank also offers a CDARS account through the Certificate of Deposit Account Registry Service. This account provides additional FDIC insurance protection through a Certificate of Deposit account – instead of checking or savings. You can choose from a variety of terms to fit your needs.
Protect your large deposits and enjoy the convenience of having them insured with one bank through ICS. Want to learn more about how your business can benefit from an Insured Cash Sweep account?