Pricing Structures

Funds swept into the NBID network today generally yield effective federal funds rate (EFFR). You can choose to pass as much or as little of this yield as they’d like on to your end clients. Since these are overnight funds with no duration or term, you can respond quickly to interest rate changes by adjusting the interest rate offered on each of the Insured Sweep Accounts through your Admin Portal. NBID's Admin Portal allows you to set individual interest rates for each of your Insured Sweep Accounts. This enables a few approaches to pricing structures:

Flat Rate: You can establish a set rate for all accounts.
Relationship-level Pricing: You can set account rates on an ad hoc basis, empowering your business services team to offer bespoke pricing for particularly high-value accounts. This could help you be competitive in winning significant funds and relationships.

For ease of program management and unified marketing messaging, NBID recommends starting with a Flat Rate and/or Relationship-level Pricing. Below are some sample scenarios to help with your decision-making process.

Flat Rate – Discount to Money Market: Example: A bank currently offers a 0.40% APY Money Market Account today for clients with over $250,000 in deposits in their account. This bank can price the Insured Sweep Account at a slight discount to the Money Market Account (i.e. 0.30%, a 10 bps discount to 0.40% the current Money Market Account). The bank can dial this rate up or down as needed to achieve their client growth goals. It’s important to note that the 0.30% rate is illustrative and provided as an example of how a flat rate could be set for all clients.

Relationship-level Pricing – At the bank's discretion: The bank can use the Insured Sweep Account as a client retention and acquisition tool for extremely large-value accounts (i.e. winning public fund RFPs, large business
accounts). The bank can offer bespoke pricing to these particularly large accounts based on the amount of business they are willing to bring over on an aggregate basis (i.e. deposits, cash management services, business lending, merchant, etc).