Protecting Public Funds Through Reciprocal Deposits
Across the United States, local and state governmental organizations use reciprocal deposit placement services to access multi-million-dollar FDIC insurance through a single bank relationship. In this way, they are able to safeguard taxpayer money, to eliminate the burden of ongoing collateral tracking, and to keep the full amount of funds placed with a local bank (where it can support local lending initiatives).
Insured Cash Sweep®, or ICS®, and CDARS® are the nation's leading reciprocal deposit placement services. Using these services, funds can be placed into demand deposit accounts, money market deposit accounts, or both using ICS or into CDs using CDARS.
Here are a few facts about how public entities—including city, county, and state treasurers; school districts; police and fire districts; and public hospitals—are using ICS and CDARS.
- Forty-nine states have laws that enable governmental entities to protect deposits through CDARS and Insured Cash Sweep.
- Last year, thousands of governmental entities utilized Insured Cash Sweep or CDARS to access multi-million-dollar FDIC insurance through a single bank relationship, and, together, they placed billions of dollars through these services.
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