Systems and methods for administering return sweep accounts
First Claim
1. A method for managing a plurality of client demand accounts including the steps of:
- (a) establishing an FDIC-insurable, pooled deposit account at a client'"'"'s bank or savings institution;
(b) transferring client funds from each of a plurality of client demand accounts to the pooled deposit account at the client'"'"'s bank or savings institution, and (c) distributing all or a portion of the interest accrued from the pooled deposit account among a plurality of clients;
wherein the client funds are retained by the bank or savings institution, and the client may implement up to an unlimited number of transactions per month.
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Accused Products
Abstract
Novel systems and methods for managing a plurality of client demand accounts so as to allow a banking institution to retain client deposits on the bank'"'"'s balance sheets while, at the same time, providing the client with the capability of implementing up to an unlimited number of transactions per month and also providing the client with interest on their account balances. These objectives are achieved through the use of a pooled deposit account at the client'"'"'s savings institution or bank. Funds are transferred from individual client demand accounts to the pooled insured deposit account. All or a portion of the interest accrued from the pooled deposit account is then distributed to individual clients. The interest may, but need not, be distributed according to the relative proportions of each client'"'"'s funds in the pooled deposit account. A database keeps track of deposits to, and withdrawals from, each of the client demand accounts, as well as each client'"'"'s proportionate and/or monetary share in the pooled deposit account. On a regular, periodic, or recurring basis, a net transaction is calculated as the sum of individual client deposits and withdrawals from the plurality of demand accounts. The net transaction calculation is used to determine an amount of funds that need to be deposited into the pooled deposit account to cover client deposits, or an amount of funds that needs to be withdrawn from the pooled deposit account to cover client withdrawals. Individual account management calculations are performed to determine whether to deposit or withdraw funds from the pooled deposit account to each of a plurality of individual client demand accounts. The database is updated for each client'"'"'s deposit and withdrawal activities. The invention permits funds to be deposited into a demand account from various sources, and also provides for the tendering of payments from the demand account via different instruments, without limitation as to the number of transfers, and with accrual of interest on the deposited funds.
243 Citations
20 Claims
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1. A method for managing a plurality of client demand accounts including the steps of:
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(a) establishing an FDIC-insurable, pooled deposit account at a client'"'"'s bank or savings institution;
(b) transferring client funds from each of a plurality of client demand accounts to the pooled deposit account at the client'"'"'s bank or savings institution, and (c) distributing all or a portion of the interest accrued from the pooled deposit account among a plurality of clients;
wherein the client funds are retained by the bank or savings institution, and the client may implement up to an unlimited number of transactions per month. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 19, 20)
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14. A method for managing a plurality of demand accounts for each of a plurality of clients whose funds are held at a banking institution in one or more deposit accounts, the method comprising the steps of:
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(a) accepting client funds; and
(b) the banking institution retaining client funds while, at the same time, providing the client with up to an unlimited number of transactions per month, and also providing the client with interest on account balances.
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18. A system for managing a plurality of demand accounts for multiple clients whose funds are held at a banking institution in one or more deposit accounts, the system comprising:
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a database having client information for each demand account;
a device for administering clients'"'"' deposits to and withdrawals from their demand accounts;
a device for authorizing or rejecting the use of funds in a particular client'"'"'s demand account to be used for each demand payment requested to be paid drawn on funds from that client'"'"'s demand account;
a device for determining the net transaction of the sum of the demand account deposits and withdrawals on a regular periodic basis;
a comparison device for determining from the net transaction whether to deposit funds to or withdraw funds from said one or more insured deposit accounts;
a device for distributing interested earned on said deposit account among the clients; and
a device for updating the database for each client'"'"'s deposits and authorized demand payments, wherein the banking institution retains client funds while, at the same time, providing the client with up to an unlimited number of transactions per month and interest on their account balances.
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Specification