Automated method and article of manufacture for fully insuring large bank deposits via a network of banks wherein banks pay a fee to a processor that facilitates the network of banks
An automated method is provided for processing large deposits that exceed an established deposit insurance limit so that the large deposits are fully insured. The large deposits are received from a plurality of unaffiliated banks from their respective depositors. The method is operated by an entity that processes the large deposits using a processor. The processor receives orders sent from the plurality of banks to process large deposits. Each of the large deposits are partitioned using the processor into a plurality of deposit portions, each deposit portion not exceeding the established deposit insurance limit. The processor assigns at least some of the deposit portions for each of the large deposits to at least some of the unaffiliated banks other than the bank that received the large deposit for deposit therein. The processor receives a fee from each of the banks that sent an order and credits the fee to the entity that processes the large deposits.
1. An automated method of processing large deposits that exceed an established deposit insurance limit so that the large deposits are fully insured, the large deposits being received from a plurality of unaffiliated banks from their respective depositors, wherein the method is operated by an entity that processes the large deposits using a processor, the method comprising for at least some of the large deposits:
(a) receiving at the processor orders sent from the plurality of banks to process large deposits;
(b) partitioning, using the processor, each of the large deposits into a plurality of deposit portions, each deposit portion not exceeding the established deposit insurance limit;
(c) assigning by the processor at least some of the deposit portions for each of the large deposits to at least some of the unaffiliated banks other than the bank that received the large deposit for deposit therein; and
(d) receiving, using the processor, a fee from each of the banks that sent an order, the processor crediting the fee to the entity that processes the large deposits.
2. The method of claim 1 wherein the fee is a specified number of basis points per dollar value of the order in step (a).
3. The method of claim 1 wherein each deposit portion is used to acquire an ownership interest in a certificate of deposit having a specified term, and the fee is lower for shorter terms.
4. The method of claim 1 wherein the plurality of unaffiliated banks belong to a network of participating banks that place orders to process large deposits and receive deposit portions.
5. The method of claim 1 wherein the deposit portions are assigned in a manner so that at least some of the unaffiliated banks that place orders to process large deposits also receive deposit portions from other unaffiliated banks that place orders to process large deposits.
6. The method of claim 1 wherein step (c) further comprises assigning by the processor at least some of the deposit portions to at least some of the banks for deposit into CDs at the respective banks.
7. The method of claim 1 wherein each of the assigned deposit portions are associated with a specific depositor's account in the bank that the deposit portion was assigned to.
8. The method of claim 1 wherein the plurality of banks are unaffiliated with each other.
9. The method of claim 1 wherein the established deposit insurance limit is in accordance with U.S. law, regulations and rules established by the United States Federal Deposit Insurance Corporation (FDIC).
10. The method of claim 1 wherein steps (b)-(c) are executed by the processor on a periodic basis.
11. A computer program product for processing large deposits that exceed an established deposit insurance limit so that the large deposits are fully insured, the large deposits being received from a plurality of unaffiliated banks from their respective depositors, wherein the large deposits are processed by an entity using a processor, for at least some of the large deposits, the computer program product comprising computer-readable media encoded with instructions for execution by the processor to perform a method comprising:
(a) receiving orders sent from the plurality of banks to process large deposits;
(b) partitioning each of the large deposits into a plurality of deposit portions, each deposit portion not exceeding the established deposit insurance limit;
(c) assigning at least some of the deposit portions for each of the large deposits to at least some of the unaffiliated banks other than the bank that received the large deposit for deposit therein; and
(d) receiving a fee from each of the banks that sent an order and crediting the fee to the entity that processes the large deposits.
12. The computer program product of claim 11 wherein the fee is a specified number of basis points per dollar value of the order in step (a).
13. The computer program product of claim 11 wherein each deposit portion is used to acquire an ownership interest in a certificate of deposit having a specified term, and the fee is lower for shorter terms.
14. The computer program product of claim 11 wherein the plurality of unaffiliated banks belong to a network of participating banks that place orders to process large deposits and receive deposit portions.
15. The computer program product of claim 11 wherein the deposit portions are assigned in a manner so that at least some of the unaffiliated banks that place orders to process large deposits also receive deposit portions from other unaffiliated banks that place orders to process large deposits.
16. The computer program product of claim 11 wherein step (c) further comprises assigning at least some of the deposit portions to at least some of the banks for deposit into CDs at the respective banks.
17. The computer program product of claim 11 wherein each of the assigned deposit portions are associated with a specific depositor's account in the bank that the deposit portion was assigned to.
18. The computer program product of claim 11 wherein the plurality of banks are unaffiliated with each other.
19. The computer program product of claim 11 wherein the established deposit insurance limit is in accordance with U.S. law, regulations and rules established by the United States Federal Deposit Insurance Corporation (FDIC).
20. The computer program product of claim 11 wherein steps (b)-(c) are executed on a periodic basis.