Money fund banking system
Providing interest to clients' deposited funds without the legal limitation on the number of demand withdrawals from deposit accounts is accomplished by an administration system that keeps all of the records for the clients' deposits and withdrawals, calculates the total of the deposits and withdrawals for all clients, and uses the calculation to determine whether funds are deposited to or withdrawn from a single deposit account in which all clients' deposit funds are kept. Clients can make unlimited withdrawals, such as by check, credit card, debit card, or electronic transfer, through the administrator. By placing the administrator as the holder of a single account, legal exemptions to the limitation on earning interest in demand accounts is facilitated.
1. A method for managing a plurality of client accounts for a plurality of clients, comprising:
accessing, by one or more computers, a database comprising information for each client account that has client account funds aggregated with funds of a plurality of other of the client accounts and are held in one or more FDIC-insured and interest-bearing aggregated deposit accounts held in one or more FDIC insured banking institutions, with the information for each of the client accounts including information on each client's funds held in said one or more insured and interest-bearing aggregated deposit accounts; and
administering, by the one or more computers, deposits to and withdrawals from each of a plurality of said client accounts, including more than six withdrawals in a month from each of a plurality of the client accounts, with one or more of said withdrawals made by debit card;
determining, by the one or more computers, on a regular basis one or more net transactions as sums of said deposits to and withdrawals from said client accounts;
determining, by the one or more computers, from said net transactions whether to deposit funds to or withdraw funds from said one or more FDIC-insured and interest-bearing aggregated deposit accounts;
making or having made more than six withdrawals in a month of funds from one of the FDIC-insured and interest-bearing aggregated deposit accounts via at least one intermediate bank that is different from the one or more FDIC insured banking institutions; and
updating, by the one or more computers, the database with deposits to and withdrawals from said each client account.
2. The method of claim 1 , further comprising after accrual in the aggregated deposit account, distributing interest, by the one or more computers, to each of the client accounts in dependence on a balance of that respective client account held in the one or more FDIC-insured interest-bearing aggregated accounts.
3. The method of claim 1 , further comprising
receiving a draft or check, credit card, sweeps, wire or electronic transfer from one or more sources that are not performing the method with respect to the plurality of client accounts; and
the administering withdrawals from each of the plurality of said client accounts step comprises administering withdrawals received from the one or more sources made by draft or check, credit card, debit card, sweeps, wire or electronic transfer and combinations thereof.
4. The method of claim 1 , further comprising holding client account funds from the client accounts of a plurality of different clients in only one FDIC-insured and interest-bearing aggregated deposit account.
5. The method of claim 1 , further comprising holding client account funds for at least one of the client accounts in a plurality of the FDIC-insured and interest-bearing aggregated deposit accounts, each of the plurality of aggregated deposit accounts held in a different FDIC insured banking institution.
6. The method of claim 1 , further comprising denying, by the one or more computers, a withdrawal transaction from one of the client accounts with funds held in a plurality of the aggregated deposit accounts if that client account does not have sufficient funds to cover that withdrawal transaction, or access to sufficient margin or line of credit.
7. The method of claim 1 , further comprising holding client account funds for at least one of the client accounts in a plurality of the different FDIC-insured and interest-bearing aggregated deposit accounts among a fixed plurality of FDIC-insured banking institutions.
8. A method for managing a plurality of client accounts for a plurality of clients, comprising:
accessing, by one or more computers, a database comprising information for each client account that has client account funds aggregated with funds of a plurality of other of the client accounts and are held in one or more FDIC-insured and interest-bearing aggregated deposit accounts held in one or more FDIC-insured banking institutions, with the information for each of the client accounts including information on each client's funds held in said one or more insured and interest-bearing aggregated deposit accounts; and
administering, by the one or more computers, deposits to and withdrawals from each of a plurality of said client accounts, including more than six withdrawals in a month by check or debit card or ACH from each of a plurality of the client accounts, with one or more of said withdrawals made by debit card;
determining, by the one or more computers, on a regular basis one or more net transactions as sums of said deposits to and withdrawals from said client accounts;
determining, by the one or more computers, from said net transactions whether to deposit funds to or withdraw funds from said one or more FDIC-insured and interest-bearing aggregated deposit accounts;
making or having made more than six withdrawals in a month of funds from one of the FDIC-insured and interest-bearing aggregated deposit accounts via at least one intermediate bank that is different from the one or more FDIC insured banking institutions; and
updating, by the one or more computers, the database with deposits to and withdrawals from said each client account.
9. The method of claim 8 , further comprising after accrual in the aggregated deposit account, distributing interest, by the one or more computers, to each of the client accounts in dependence on a balance of that respective client account held in the one or more FDIC-insured interest-bearing aggregated accounts.
10. The method of claim 8 , further comprising
receiving a draft or check, credit card, sweeps, wire or electronic transfer from one or more sources that are not performing the method with respect to the plurality of client accounts; and
the administering withdrawals from each of the plurality of said client accounts step comprises administering withdrawals received from the one or more sources made by draft or check, credit card, debit card, sweeps, wire or electronic transfer and combinations thereof.
11. The method of claim 8 , further comprising holding client account funds from the client accounts of a plurality of different clients in only one FDIC-insured and interest-bearing aggregated deposit account.
12. The method of claim 8 , further comprising holding client account funds for at least one of the client accounts in a plurality of the FDIC-insured and interest-bearing aggregated deposit accounts, each of the plurality of aggregated deposit accounts held in a different FDIC-insured banking institution.
13. The method of claim 12 , further comprising denying, by the one or more computers, a withdrawal transaction from one of the client accounts with funds held in a plurality of the aggregated deposit accounts if that client account does not have sufficient funds to cover that withdrawal transaction, or access to sufficient margin or line of credit.
14. The method of claim 8 , further comprising holding client account funds for at least one of the client accounts in a plurality of the different FDIC-insured and interest-bearing aggregated deposit accounts among a fixed plurality of FDIC-insured banking institutions.
15. The method as defined in claim 8 ,
further comprising holding some client account funds for at least one of the client accounts in at least one interest-bearing aggregated deposit account that is not FDIC-insured, and further comprising
maintaining in the database information on the client's funds held in said at least one interest-bearing aggregated deposit account that is not FDIC-insured; and
determining from said net transactions whether to deposit funds to or withdraw funds from the at least one interest-bearing aggregated deposit account that is not FDIC-insured.
16. The method as defined in claim 1 ,
further comprising holding some client account funds for at least one of the client accounts in at least one interest-bearing aggregated deposit account that is not FDIC-insured, and further comprising
maintaining in the database information on the client's funds held in said at least one interest-bearing aggregated deposit account that is not FDIC-insured; and
determining from said net transactions whether to deposit funds to or withdraw funds from the at least one interest-bearing aggregated deposit account that is not FDIC-insured.