This document provides information on Treasury Prime’s Enhanced FDIC Insurance product offered in collaboration with our partner banks. It includes details on enrollment requirements, pricing information, and additional resources. The steps for enrolling in the program are outlined, along with guidance on the necessary end-user agreement documents. The page also presents pricing information and provides links to relevant resources.
Enablement Steps
Note: Prior to enrolling in Enhanced FDIC Insurance, a Due Diligence process on the fintech between the bank and sweeps provider is required. The enablement timeline may vary depending on the bank’s sweeps provider (either R&T or IntraFi).
The Deposit Sweeps feature at Treasury Prime is not optimized for enrolling foreign entities without US TINs. However, we can accommodate this at your own risk. It’s important to note that there may be tax implications for enrolling foreign entities without a US TIN. Forms 1099-INTs cannot be generated through our platform without a US TIN. Treasury Prime cannot provide advice on a customer’s tax liability. If you have any questions, it is recommended that you consult a tax professional. Please be aware that manual oversight is required to monitor foreign entities enrolled in deposit sweeps. For more information about enrolling foreign entities without US TINs, please reach out to your Relationship Manager.
- The bank must sign an agreement directly with the chosen deposit sweeps network.
- Next, Treasury Prime drafts and executes an amendment to the fintech’s API Services Order Form, adding the additional services of FDIC sweep coverage and displaying the corresponding fees.
- Treasury Prime drafts and executes an Amendment to its agreement with the bank partner to allow the sweeps network to share data with Treasury Prime.
- The bank shares the end-user agreement documents below with the fintech, including the relevant language.
- The specific presentation of the documents to the end user may vary depending on the provider.
- The fintech is required to show this information to their end users, but the method of presentation may vary depending on the nature of their program.
- Once Treasury Prime receives confirmation from the bank that the steps above have been completed, Treasury Prime will enable Enhanced FDIC Insurance coverage for the bank and applicable fintech.
End-user Agreement Documents
| Topic | InfraFi | R&T |
|---|
| Name of agreement documents that must be shown to all end users enrolling in the Enhanced FDIC Program | Deposit Placement Agreement (DPA); Custody Agreement (CA) | Tri-party agreement (Enterprise/Bank/FDIC Provider); End user terms of service for Enhanced FDIC Insurance coverage. |
| Guidance on how the agreement docs are shown to the end user per sweeps provider | If the enterprise’s program automatically opts all customers in as part of their general service, they can include the DPA and CA in their terms of service. If the enterprise’s program offers end users with the choice to opt in to enhanced FDIC coverage or not, they must explicitly show the user the DPA and CA language and capture their acknowledgement, including a datetime stamp that corresponds to the end user acceptance | It is possible to bundle the terms and conditions as part of an overall document, but the decision is best made on a case-by-case basis, depending on the range of services being offered and the specific circumstances |
Clarifying Roles
| Owner | Action | Notes |
|---|
| Bank | The bank contracts directly with the sweeps network. | Treasury Prime is not involved in this step. |
| Treasury Prime | Once contracted with the sweeps network, the bank works with their fintech on executing an amendment. | The Bank is not involved in this step. |
| Fintech | Once sweeps is enabled, the fintech will build to Treasury Prime’s https://developers.treasuryprime.com/docs/deposit-sweep | The fintech will call the API, using Treasury Prime’s software to send account enrollment information to the sweep network. There is no action needed by the bank. |
| Bank, Sweep Network | The sweep network partners with the bank on managing the accounts and flow of funds pertaining to enrolled accounts. | Neither Treasury Prime nor the fintech is involved with managing of deposits within the bank and sweep network |
Threshold Balance
- To the extent that a bank structures the program such that a threshold balance remains at the source bank (Treasury Prime’s partner bank) prior to funds being swept into the deposit sweep program, Treasury Prime maintains account level data such that end customers are responsible for tracking and directing funds to the extent there are multiple accounts at the source bank.
- Treasury Prime will provide an option for an end customer or enterprise to specify a target balance amount per account, with a default option to $250k.
- Treasury Prime updates the transaction file that it is sending to the deposit sweep network such that only the difference versus previous day is included in the file.
Pricing
- Treasury Prime does not invoice banks for sweeps. We only charge a SaaS fee to the fintech to enable their customers to use the service that the bank has contracted with the sweeps provider for.
- Separately, there will be a contract between the sweep network and the bank outside of Treasury Prime.
