Program Omnibus Account

The program omnibus account is an account set up during onboarding that will serve as the main account to facilitate funds for the NBID program. It is a standard demand deposit account established at your bank in our custodian's name. It acts as the single program account through which all Insured Sweep Account funds are managed and moved.

The program account streamlines money movement and reduces operational complexity for your bank. It also allows you to receive deposits from the network from other participating banks. To open the account, please request Northern Trust's, NBID's custodian, account information and relevant documents from your NBID Regional Director.

Why a Program Account DDA is required

The Program Account DDA is required to ensure that pass-through FDIC insurance eligibility is properly attributed to the funds held in this omnibus account. Because Northern Trust serves as the custodian of the funds in the network, the account must be established as a demand deposit account (DDA) titled “The Northern Trust Company, acting as custodial agent for the exclusive benefit of its customers, which may be acting for the benefit of others”, and a general ledger account alone would not satisfy pass-through requirements. While other deposit network providers may have different configuration requirements given their unique custodial structure, the ModernFi Deposit Network helps to ensure regulatory compliance.