IntraFi Network Deposits

ICS®, the IntraFi Cash Service®, and CDARS®, the Certificate of Deposit Account Registry Service®, are the leading large deposit placement services. Use the services to grow relationships regardless of liquidity position — receive matching deposits (reciprocal) and keep the full amount of customer funds on balance sheet, or sell the excess and earn fee income.

With ICS®, the IntraFi Cash Service®, and CDARS®, the Certificate of Deposit Account Registry Service®, financial institutions can offer safety-conscious customers access to millions in aggregate FDIC insurance across network banks.

Note: IntraFi is not an FDIC-insured bank, and deposit insurance covers the failure of an insured bank. A list of network banks can be found at https://www.intrafi.com/network-banks. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply. To meet the conditions for pass-through FDIC deposit insurance, deposit accounts at FDIC-insured banks in IntraFi’s network that hold deposits placed using an IntraFi service are titled, and deposit account records are maintained, in accordance with FDIC regulations for pass-through coverage.

Use ICS and CDARS to grow relationships regardless of liquidity position — receive matching deposits (reciprocal) and keep the full amount of customer funds on balance sheet, or sell the excess and earn fee income, switching back and forth between receiving and selling deposits as liquidity needs change. Your bank establishes the interest rate for funds it places through the services, and your bank owns the customer relationship.

Most reciprocal deposits are treated as nonbrokered up to the lesser of $5 billion or 20% of liabilities for a well-capitalized bank.

ICS and CDARS can also be used to replace collateralized deposits, improving asset liquidity, repurposing funds into higher-earning assets, reducing collateral-tracking burdens and associated costs, and lowering the risk of shortfall due to collateral-value deterioration.

How do ICS and CDARS work? Deposits placed through ICS and CDARS are divided into amounts under the standard FDIC insurance maximum of $250,000 and placed at participating network banks in demand deposit accounts, money market deposit accounts, or both (with ICS) or in CDs (with CDARS). With ICS and CDARS, banks can provide peace of mind, flexibility, and favorable returns – while reducing collateralization burdens. Integration is available with all major service providers and provides time-saving automation and improved reporting capabilities.

Wholesale funding: IntraFi is one of the largest wholesale funding providers in the United States. Banks can use ICS and CDARS to access fixed- or floating-rate funding, purchasing deposits from other network member banks.

"With great success, we are selling ICS to our large-deposit clients as a retention vehicle, as well as using ICS to lower cost of funds and attract new deposit business"
ꟷ John Calpey, Executive Vice President and Chief Operating Officer, One Florida National Bank, FL

"Our public funds customers appreciate knowing that when they place their funds through ICS, those funds are eligible for FDIC protection beyond $250,000 and earn interest. That benefits them, as well as local taxpayers, as our bank can make those funds available for investment within the community."
ꟷ Mario Martinez, President, Catskill Hudson Bank

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