Gain Access to Multi-Million-Dollar FDIC
Insurance on Large Deposits
Insured Cash Sweep®
ICS®, the Insured Cash Sweep® service, is a smart, convenient way for bank customers to access multi-million-dollar FDIC protection on large deposits, earn a return, and enjoy flexibility.
With the ICS service, you can:
- Rest assured. Make even large deposits eligible for protection that’s backed by the full faith and credit of the federal government.
- Earn interest. Put excess cash balances to work by placing funds into demand deposit accounts using the ICS demand option or into money market deposit accounts using the ICS savings option.
- Save time. Work directly with just our bank - a bank you know and trust - First National Bank of Michigan. Forego opening accounts under different insurable capacities or managing multiple bank relationships. Receive just one monthly statement from us summarizing your account activity and balances. And, if you are accustomed to collateralization, reduce the need to track collateral on an ongoing basis.
- Access funds. Make unlimited withdrawals using the ICS demand option or up to six program withdrawals per month using the ICS savings option. Funds can be placed using either or both ICS options to best match your cash management and liquidity needs.
Bank Safe, Bank Smart®.
For assistance, please contact Jennifer Nemecek, Treasury Management Manager
Frequently Asked Questions
Insured Cash Sweep
Would you like to access multi-million-dollar FDIC protection on your deposits, earn interest, and enjoy flexibility at the same time? Now you can through ICS®, the Insured Cash Sweep® service.
How can deposits greater than the standard FDIC insurance maximum be eligible for insurance by the FDIC?
The FDIC insures up to $250,000 of a customer’s deposit accounts in a given insurable capacity at an FDIC-insured depository institution. Your ICS funds are divided into amounts under the standard FDIC maximum and placed with other ICS Network members, each an FDIC-insured institution. This makes your deposit eligible for FDIC insurance at each member bank. By working directly with our bank, you can access insurance through many.
How often can I access my funds?
You can make unlimited program withdrawals using the ICS demand option and up to six program withdrawals per month using the ICS savings option.
Who has custody of my funds?
Funds placed through ICS are deposited only in FDIC-insured banks. First National Bank of Michigan acts as custodian for your ICS deposits, and the sub-custodian for ICS deposits is BNY Mellon.
Who provides the additional FDIC insurance when my funds are placed using ICS?
Through ICS, funds are placed with other ICS Network members, and those Network members provide you with access to the additional FDIC insurance coverage. Working directly with just First National Bank of Michigan, you can access coverage through many.
Is my account information safe?
You work directly with just First National Bank of Michigan, the bank you know and trust. As always, your confidential information remains protected.
Placement of funds through the ICS service is subject to the terms, conditions, and disclosures in the service agreements, including the Deposit Placement Agreement (“DPA”). Limits and customer eligibility criteria apply. In the ICS savings option, program withdrawals are limited to six per month. Although funds are placed at destination banks in amounts that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”), a depositor’s balances at the relationship institution that places the funds may exceed the SMDIA (e.g., before ICS settlement for a deposit or after ICS settlement for a withdrawal) or be ineligible for FDIC insurance (if the relationship institution is not a bank). As stated in the DPA, the depositor is responsible for making any necessary arrangements to protect such balances consistent with applicable law. If the depositor is subject to restrictions on placement of its funds, the depositor is responsible for determining whether its use of ICS satisfies those restrictions. ICS, Insured Cash Sweep, and Bank Safe, Bank Smart, are registered service marks of Promontory Interfinancial Network, LLC.