If you’re looking for a safe and convenient way to enjoy FDIC insurance on deposit amounts larger than the standard FDIC maximum, these programs might be the best choice for you. You will be able to work with one bank yet receive the insurance benefits from many.
- Easy access to multi-million dollar FDIC protection.
- First United Bank transactional account required.
- Interest compounds daily.
- Interest added to principle or deposited into another First United demand deposit account.
- IntraFi Network Deposits-CD Option (formerly CDARS) accounts choose rates and maturity that best match your goals.
- IntraFi Network Deposits (formerly ICS) accounts enjoy as many withdrawals as you need while still gaining interest.
Accounts Placed Through ICS/CDARS Offer:
- Access to multi-million-dollar FDIC insurance.¹
- The ease of working through one trusted relationship, earning one rate per maturity, and receiving consolidated statements.
- Possible relief from ongoing collateralization – since IntraFi Network Deposits products are eligible for FDIC protection, you may not need to perform the time-consuming tasks of continually collateralizing your deposits and tracking changing collateral values on a recurring basis.²
- The power of daily compounding.
- The ability to have your funds available to support lending initiatives, including special development projects that strengthen your local community.³
1 – Limits apply. Funds may be submitted for placement only after an investor enters into a IntraFi Network Deposits Placement Agreement with our bank. This agreement contains important information and conditions regarding the placement of funds.
2 – If an investor is subject to restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the investor to determine whether the placement of the investor’s funds through IntraFi Network Deposits or a particular IntraFi Network Deposits transaction satisfies those restrictions.
3 – Because deposited funds are exchanged on a dollar-for-dollar basis with other banks in the IntraFi Network, our bank can use the full amount of a deposit placed through IntraFi Network for local lending, satisfying some investors’ local investment goals/mandates. Alternatively, with an investor’s consent, our bank may choose to receive fee income instead of deposits from other banks. Under these circumstances, deposited funds would not be available for local lending.
Here’s How IntraFi Network Deposits Work:
- You enter into one agreement with First United Bank.
- For IntraFi Network Deposits, select your demand deposit account and enjoy unlimited withdrawals.
- For IntraFi Network Deposits-CD Option, based on our current CD options, you select a rate and maturity that best match your investment goals.
- You deposit funds and, using IntraFi Network Deposits, we submit them for placement at member banks.
- The funds are placed in demand deposit accounts or CDs at multiple banks in denominations under the FDIC maximum. As a result, you can access FDIC insurance coverage from many institutions while working directly with just one.
- You receive written confirmation of your deposits and a listing of all your accounts.
Frequently Asked Questions
Why should I choose IntraFi Network Deposits?
IntraFi Network Deposits is one of the safest and smartest investment vehicles for investors looking to protect their large-dollar investments.
How can deposits greater than the standard FDIC insurance maximum be insured by the FDIC?
The FDIC insures up to $250,000 of a customer’s deposits in a given insurable capacity at an FDIC insured depository institution.¹ So, you can run around to multiple institutions to deposit your funds to receive the same coverage you can access using IntraFi Network Deposits. Or you can place your large-dollar deposit with First United Bank– a member of the IntraFI Network. Your deposit is divided into smaller amounts and placed with other IntraFi Network members – each an FDIC-insured institution. Then, those member institutions issue accounts in amounts under the standard FDIC insurance maximum, so that your deposit is eligible for FDIC insurance at each member bank. By working directly with one financial institution –First United Bank– you can receive insurance through many.
Who has custody of my funds?
Funds placed through IntraFi Network Deposits are deposited only in FDIC-insured banks. We act as custodian for your IntraFi Network deposits, and the sub-custodian for IntraFi Network deposits is The Bank of New York Mellon (“BNY Mellon”), the largest custodian in the world with total assets of more than $22 trillion.²
Unique to IntraFi Network, a depositor can obtain a confirmation of records maintained by BNY Mellon as sub-custodian in order to reconcile those records with the statements received from us. At any time, as often as desired, a depositor can obtain a certified statement from BNY Mellon that confirms the exact amount of his or her accounts, including principal balance and accrued interest, for each FDIC-insured institution that issues an account through the IntraFi Network. You can submit a request for the certified statement, along with BNY Mellon’s processing fee, through us. BNY Mellon will send the certified statement directly to you or to another party, such as an auditor, designated by you.
How can my funds be used locally if my accounts are issued by financial institutions all over the country?
When we swap deposits with other IntraFi Network members on a dollar-for-dollar basis, the same amount of funds placed through the Network returns to us. As a result, the total amount of your original deposit can remain with our bank and be used for local lending. (ReciprocalSMtransactions only.)
Is my account information safe?
Your account information is protected; your relationship remains between you and First United Bank.
What happens if a IntraFi Network member bank fails?
Most of the banks that have failed in the United States in recent years were not IntraFi Network Deposits members or did not hold any IntraFi Network deposits when they failed. When a Network member has failed, the bank’s accounts issued using IntraFi Network Deposits in most cases have been transferred to a healthy institution – the FDIC’s preferred method for handling bank failures. In cases where the FDIC has been unable to find a healthy institution willing to accept such a transfer, it has arranged for the payment of the insured principal and accrued interest to the depositors. This payment has usually occurred in a matter of days.
Please go to www.fdic.gov/deposit/ to learn more about FDIC insurance.
1 – The standard FDIC insurance coverage amount is $250,000 per insured capacity per bank.
2 – As reported by BNY Mellon in December 2009. Please see https://www.bnymellon.com/us/en/investor-relations/index.jsp for details.
Placements of your funds through the IntraFi Network Deposits and/or IntraFi Network Deposits-CD Option service is subject to the terms, conditions, and disclosures set forth in the agreements you enter into with us, including the applicable Deposit Placement Agreement. Limits apply, and customer eligibility criteria may apply. If a depositor is subject to the restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the depositor to determine whether the placement of the depositor’s funds through IntraFi Network Deposits, or a particular transaction, satisfies those restrictions.
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