The InterLINK™ system of FDIC extension utilizes a network of interacting financial institutions assembled and coordinated by Intermedium Financial Inc. The sources of funds in the system are institutional money managers such as brokerage houses which are looking for the best available risk- reward opportunities for their clients. Intermedium channels the cash sweeps of those money managers through a clearing bank or clearing agent which then forwards the cash into savings accounts in individual FDIC insured banks.

The Interlink proprietary process ensures the safety, profitability and convenience of deposit sweeps for your clients. The chart below illustrates the movement of funds from broker/dealers to the banks.

The Interlink helps banks and brokerages run an Insured Bank Deposit Program that provides clients with: 

  • Attractive yields
  • The security of an FDIC-insured money market deposit account on amounts far in excess of single bank limits

Banks and brokerages benefit from Insured Bank Deposit Programs because:

  • They gain access to a stable, diversified source of deposits
  • They can solicit new markets.

The Interlink allows Insured Bank Deposit Programs to offer accounts with tiered rates based on the balance levels they establish. Participants can specify different tiers based on the balance of the account. 

On a daily basis, the system determines the rate each account receives based on the end-of-day balance. The software does all the record-keeping and can be installed with few changes in your technology and operations procedures. 

The use of money market deposit accounts means banks and brokerages can offer this product to all customers without worrying about banking restrictions. The process used is a proven, patented one that is compliant with all requirements of the FDIC, Federal Reserve Bank and New York Stock Exchange.

How it works

The Interlink acts as a record keeper for member banks, interfacing with their back offices daily. Once the file is received by the processing engine, it generates the net settlement amount for the back office and allocates the deposit and withdrawal activity among the member banks.

Banks do not have to change their settlement procedures and way of doing business. They can have access to all customers’ bank information on a daily or monthly basis.

Banks send sweep files to The Interlink by 2 p.m. and wires by 4 p.m. or before the Fed wire system closes at 6 p.m. Confirmations and balance files are sent in compliance with the processors’ requirements.

On the deposit side, emails are sent with daily activity by 4 p.m. and wires are sent before the Fed wire system closes. Interlink receives account balances in the morning from deposit banks and an activity file from the settlement bank for reconciliation purposes.

Banks must send in a file format and a test file for both registrations and transactions. Joining the system take about 60 days