What is a deposit network?

The NBID deposit network is a group of banks working together to help one another grow deposits and client relationships. The network is a powerful tool that helps banks offer customers access to millions in aggregate insurance across network banks*, source funding, and manage their balance sheets.

Through the network, banks can offer customers access to millions in aggregate insurance across network banks*, beyond the standard $250,000 Standard Maximum Deposit Insurance Amount. The network works by distributing a customer's deposits across multiple insured depository institutions within the deposit network, offering access to additional peace of mind and security, all while the customer retains a single relationship with your bank. Normally, when a bank utilizes the NBID network, they enter a reciprocal arrangement, where they receive the same amount of deposits back from the network as they have swept in to the network, which ensures they do not lose deposits in aggregate.

Banks can also source funding and sweep excess liquidity through the network to manage their balance sheets. Banks with excess deposits can put those idle funds to work, sweeping them off their balance sheets to reduce balance sheet size and potentially earn fee income.

Banks in need of liquidity can also source overnight or term funds on demand to strengthen their balance sheets and funding.

*A list identifying NBID / ModernFi network banks can be found here. NBID and ModernFi are not FDIC-insured banks, and deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply.