Method and apparatus for fully insuring large bank deposits

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance

Reexamination Certificate

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Details

C705S039000

Reexamination Certificate

active

07440914

ABSTRACT:
An Interchange service that allows member banks participating in the service to offer their customers multiple certificates of deposit (“Multi-CDs”) so that large deposits exceeding an applicable Federal deposit insurance limit (e.g., $100,000) are fully insured. The Interchange partitions each of the large deposits into a plurality of deposit portions that do not exceed the Federal deposit insurance limit. The deposit portions are assigned to the member banks so that, for each member bank, the difference between funds flowing out of and into each member bank is minimized or eliminated. Differences in deposit terms offered by each of the member banks are monetized and resolved through the calculation and payment of present value payments, which are transferred between member banks that have different sets of deposit terms.

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Patrick Parrish, Home Financial Calculator, May 1985, Compute! Issue 60, p. 29.

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