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Personal Finances

What is Insured Cash Sweep (ICS)?

Your Guide to the Insured Cash Sweep

Amerant Bank offers an innovative product called Protection+ that allows customers to access millions in FDIC insurance via banks in the IntraFi℠ network through Insured Cash Sweep (ICS). Learn how this is accomplished and how you may be eligible for this type of account.

This service helps on a multitude of levels and ensures that your money is not only safe, but is also working hard, earning interest for you and growing. With ICS, you can achieve both of these goals by optimizing your FDIC insurance coverage while getting flexible access to your funds via unlimited withdrawals from funds placed in demand deposit accounts. In this article, we’ll explore the benefits of ICS in detail and how it can help you achieve your financial goals.

What is Insured Cash Sweep (ICS)?

An Insured Cash Sweep (ICS) account provides FDIC insurance on deposits greater than $250,000 by spreading funds between the custodian bank and other partner banks in the IntraFi℠ network. Insured Cash Sweep accounts earn interest while maximizing protection for funds beyond the typical FDIC limit of $250,000, and are available to both businesses and consumers.

What is IntraFi℠?

IntraFi℠ is a Financial Services network that connects individual banks and offers fully insured deposit services to customers via the FDIC. IntraFi’s℠ services are integrated with the Insured Cash Sweep (ICS) program. This enables banks to offer FDIC insurance for deposits beyond the standard $250,000 limit by spreading them across multiple banks in the IntraFi℠ network, allowing access to multi-million dollar FDIC insurance.

How does Insured Cash Sweep work?

Let’s say you have $1 million that you want to keep safe, insured, and earn interest on. You can deposit the entire amount with Amerant Bank by opening an ICS account. The funds are then automatically divided into smaller amounts and placed in demand deposit accounts at multiple other banks within the ICS network.

One could place $250,000 in Amerant Bank, another $250,000 in Bank B, a further $250,000 in Bank C, and the remaining $250,000 in Bank D. All the banks mentioned are part of the IntraFi℠ Network. This approach ensures that each deposit is eligible for FDIC insurance, up to the maximum limit of $250,000 per bank, per depositor. As a result, this method provides greater protection compared to conventional savings accounts. In the unlikely event that one of these banks experiences a failure, the FDIC provides insurance to keep your funds secure and accessible.

With ICS, there is no need to worry about monitoring multiple accounts at different banks as your deposits are outlined in one statement. This statement also provides a view into the banks where the funds are deposited. The interest rates on ICS accounts are competitive and may be higher than those offered by traditional deposit accounts – making it an attractive option for individuals and businesses with large cash balances.

Who maintains my Insured Cash Sweep?

If you open an Insured Cash Sweep (ICS) account with Amerant, Amerant Bank will be responsible for managing and safeguarding the funds deposited into the account, ensuring that they are automatically placed in demand deposit accounts at multiple banks within the ICS network.

How Secure is Insured Cash Sweep?

Insured cash sweep accounts offer a high degree of security for your deposits, utilizing FDIC insurance to safeguard funds up to $250,000 per depositor at each participating bank. This protection extends even in the event of a participating bank’s failure, ensuring the continued safety of your deposits. Moreover, insured cash sweep accounts typically boast FDIC insurance coverage of up to $150 million in total, providing exceptional protection for substantial deposits, even against unlikely bank failures.

On top of the FDIC insurance, some banks, including Amerant, have strict security protocols to ensure that your funds are not only insured, but protected from hackers, scammers, and fraud. Learn more about how Amerant Bank takes care of your finances at the Security Center.

How do I open an Insured Cash Sweep account?

Visit the Protection+ page or your nearest Amerant Bank branch to open an account and start taking advantage of the benefits offered by this innovative product.

Amerant Editorial Team
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