What rate do I pay and/or earn in the network?

Reciprocate: Banks can choose to reciprocate – both sweeping and receiving funds simultaneously – to offer customers access to millions in aggregate insurance across network banks* without affecting their overall balance sheet size.

• Rate: When you reciprocate by sweeping the same amount of funds you receive back to your bank, the network rate offsets itself, leaving only the NBID usage fee. Your institution has full discretion on what rate you pay to your customers in the program.
• Reciprocating Volume: The bank has the ability to 1) reciprocate the full amount swept into the network to maintain balance sheet size, 2) reciprocate less than the full amount swept into the network to reduce balance sheet size and potentially earn additional fee income, or 3) reciprocate more than the full amount swept in network to grow the size of the balance sheet.

Sweep: Banks can sweep client funds into the NBID network to offer customers access to millions in aggregate insurance across network banks* in addition to sweeping off undeployed deposits to potentially improve financial metrics and earn fee income.

• Rate: Banks earn the network rate (typically around effective federal funds rate) on any deposits swept into the network from institutions receiving those funds, minus the NBID usage fee. Your institution has full discretion on what rate you pay to your customers in the program.
• Example: When the network rate they earn is effective federal funds rate (4.33% as of February 11, 2025), and your bank offers 1% interest rate (illustrative) on the Insured Sweep Account, you will earn 3.33% on deposits in network minus NBID fees.

Receive: Banks can source cost-effective funding on demand from other banks in the NBID network. This can help manage liquidity and asset origination.

• Rate: Banks pay the network rate (typically around effective fed funds) on funds received. Interest is accrued daily and paid monthly. There are no NBID fees associated with receiving funds.
• Example: If the network rate is 4.33%, your institution will pay the network rate on funds received for the number of days the funds remain on your balance sheet.

For more information on setting rates for your clients, click here, and for details on interest payment and monthly settlement, click here.

*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.