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Insured Liquidity Sweep Program

At Republic Bank, we are committed to helping you protect your deposits, especially during times of market volatility. The Insured Liquidity Sweep Program is the most flexible, multi-million dollar FDIC insured Treasury Management solution available. The program provides you with access to a network of US banks that, together, can offer millions of dollars in FDIC insurance coverage and daily liquidity. It is an ideal cash sweep option for anyone seeking safety, security and liquidity.

How the program works.

Client cash balances are sent daily into the Insured Liquidity Sweep Program and allocated into several program banks to ensure high levels of FDIC Insurance.

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Program Benefits

  • FDIC insurance reduces the risks associated with money fund investing
  • Diversification of deposits among FDIC insured banks reduces overall exposure
  • Millions in FDIC Insurance
  • Cash is available daily
  • Funds are always accessible with no penalties on the number of monthly withdrawals
  • Avoid the burden of dealing with numerous bank relationships and benefit from a high level of FDIC insurance through a single contact point
  • Access DepositViewSM, an online portal that enables you to view all banks in which your deposit balances are held

FAQs

  • How are banks vetted in the system?

    Banks that are deposit taking banks within the program are only considered if they are categorized as “well capitalized” by the FDIC and have no outstanding enforcement actions such as cease and desist orders, particularly as it relates to capital structure. Status is evaluated quarterly.

  • Have you experienced a bank failure within the program?

    The program administrator has not experienced a bank failure within the sweep program since the program's inception in 2011. On an annual basis, the program administrator tests its procedures for filing an FDIC claim for a "mock" bank failure to ensure a timely filing of a claim in the event of an actual bank failure.

  • How do we know where our money is?

    Total balance levels may be accessed daily on Republic Bank’s Online Banking. Monthly statements provide the name of each bank and the corresponding balance at each bank. Details of deposit placement amongst program banks may be accessed during the month via the program administrator’s online system.

  • Are there any restrictions or delays to access funds?

    The system provides daily liquidity. Funds may be accessed on any banking day without penalty. All transactions (checks / wires / EFTs / deposits) flow through the checking account as usual. Funds are automatically transferred to and from the sweep account as needed.

  • What if I already have funds in one or more of the banks in the program?

    A current list of participating banks is provided at account setup. An account holder may ‘opt out’ of banks on the list to avoid exceeding the FDIC Insurance limit of $250,000 per individual tax ID.

  • If we deposit up to the program maximum, is interest posted still insured?

    Maximum insurance limits are set to allow a cushion for ‘opting out’ of several banks as well as interest posting 'if applicable'. Should the balance approach a critical level, the account holder is notified of the potential insurance cap and may choose to leave the funds in the program or remove excess funds.

  • How is interest posted?

    If applicable, interest is posted on the last day of the month and is reinvested in the program.

  • How is interest calculated?

    Interest is accrued daily and paid monthly using a standard simple interest calculation: ((Principal X (Rate/365)) X Number of days in Period).

  • Who pays the interest?

    Interest is paid by Republic Bank. A 1099-INT is sent from Republic Bank for tax purposes.