Method, system and computer program product for managing funds in custodial deposit accounts
A method, system and computer program product for managing aggregate funds held in a custodial deposit accounts by a custodial agent on behalf of a plurality of individuals. According to the present invention, the custodial deposit accounts comprises an omnibus transaction account (“Omnibus TA”) and a Omnibus money market deposit account (“Omnibus MMDA”). A corresponding individual transaction account (“Individual TA”) and individual money market deposit account (“Individual MMDA”) are kept on the books and records of the custodial agent for each individual, representing the amount of the individual's funds deposited in the Omnibus TA and Omnibus MMDA, respectively. According to the present invention, limitations on transfers from the Omnibus MMDA to the Omnibus TA and limitations on transfers from the corresponding Individual MMDAs to the Individual TAs are managed by daily allocation of the funds in the Individual TAs and Individual MMDAs.
1. A computer-implemented method for managing, over a first period of time, funds held in custodial accounts by a custodial agent on behalf of a plurality of customers, wherein said custodial accounts comprise an omnibus transaction account (“Omnibus TA”) and an omnibus money market deposit account (“Omnibus MMDA”), and wherein said Omnibus TA represents a plurality of individual transaction accounts (each an “Individual TA” of one or more of said plurality of customers) and said Omnibus MMDA represents a plurality of individual money market deposit accounts (each an “Individual MMDA” of one or more of said plurality of customers), such that said Omnibus TA has a balance of funds in an amount equal to a total aggregate amount of funds in said Individual TAs and said Omnibus MMDA has a balance of funds in an amount equal to a total aggregate amount of funds in said Individual MMDAs, comprising
(a) at the beginning of said first period of time, allocating a percent greater than 0% of each of said plurality of customers' funds to each of said customers' Individual TA, such that each of said plurality of customers has funds allocated to both said customer's Individual TA and said customer's Individual MMDA;
(b) receiving with one or more processors of a computer transaction data relating to transactions for one or more of said plurality of customers;
(c) deriving with said one or more processors a net balance change for said Omnibus MMDA based on the transaction data received for one or more of said plurality of customers;
(d) comparing with said one or more processors said derived net balance change to the balance of funds in said Omnibus TA;
(e) determining by said one or more processors that said net balance change is a negative net balance change not greater than the balance of funds in said Omnibus TA, and
(f) in response to said determining, during said first period of time, allocating with said one or more processors funds from one or more of said customer's Individual TAs to the customer's respective Individual MMDAs to offset said derived negative net balance change.
2. The method according to claim 1 , wherein said Omnibus TA and Omnibus MMDA are interest-bearing accounts.
3. The method according to claim 1 , wherein said Individual TAs and said Individual MMDAs are interest-bearing accounts.
4. The method according to claim 1 , further comprising:
when a remaining number of permitted transfers from said Omnibus MMDA for said first period of time, as dictated by a predetermined transfer limit, is greater than the number of days remaining in said first period of time, allocating with said one or more processors the total aggregate amount of funds from said Individual TAs to their respective Individual MMDAs.
5. The method according to claim 1 , wherein said percent greater than 0% of each of said customers' funds allocated to said customer's Individual TA at the beginning of said first period of time is not greater than about 5% of the total combined funds in said customer's Individual TA and said customer's Individual MMDA.
6. The method according to claim 1 , wherein at the beginning of second period of time, when there are no funds in said Omnibus TA, allocating with said one or more processors an amount of one or more of said customers' funds to said customer's Individual TA from said customer's Individual MMDA.
7. The method according to claim 6 , wherein said amount of funds allocated from said customer's Individual MMDA to said customer's Individual TA at the beginning of said second period of time is not greater than about 5% of the aggregate funds in said customer's Individual MMDA.