SVB - ICS Sweep Accounts ( The IntraFi Network Deposits program)
March 13, 2023
by a searcher from New York University in Nashville, TN, USA
All:
I know there is a post on SVB, but also doing a general post on the ICS Sweep accounts (IntraFi Network) that most banks offer. If your small business keeps more than $250K in cash, then most banks provide a money market account (ICS Sweep) which every day at COB will sweep the money out to other banking institutions (to provide FDIC insurance to almost $30M) - and in the morning sweep the money back to your bank. As such, it appears like nothing has happened, but it has protected the cash that your enterprise holds.
Just putting this out there in case you all haven't come across it before.
from Texas A&M University in Elizabethton, TN, USA
Though, I'm wondering why FDIC does not just insure all deposits as policy (like they are doing retroactively now anyway), then depositors wouldn't spook so easily.
from Harvard University in Cambridge, MA, USA