MONEY FUND BANKING SYSTEM WITH MULTIPLE BANKS AND/OR RATES

• US 20080120228A1
• Filed: 10/31/2007
• Published: 05/22/2008
• Est. Priority Date: 10/21/1998
• Status: Active Grant

• Current Assignee: Reserve Management Corporation
• Original Assignee: Reserve Management Corporation
• Inventors: Bent, Bruce
• Granted Patent: US 7,716,131 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Providing interest to clients'"'"' deposited funds without limitation on the number of demand withdrawals from deposit accounts is accomplished by an administration system that keeps all of the records for the clients'"'"' deposits and withdrawals, calculates the total of the deposits and withdrawals for all clients, and uses the calculation to determine whether funds are deposited to or withdrawn from one or more deposit accounts in which all clients'"'"' deposit funds are kept. Clients can make unlimited withdrawals, such as by check, credit card, debit card, or electronic transfer, through the administrator. By placing the administrator as the holder of the deposit account(s), exemptions to the limitation on earning interest in demand accounts is facilitated; additionally, dispersing the deposit account funds among multiple banks allows the client to obtain FDIC insurance for all of the deposited funds, which may amount to insurance in excess of the statutory maximum allowed (presently $100,000.00).

Claims

1. A method for managing a plurality of client demand accounts for one or more clients, wherein said client demand account funds are held in one or more FDIC-insured and interest-bearing deposit accounts, which are not NOW accounts, at one or more banking institutions, said method comprising:

administering clients'"'"' deposits and/or transfers to and withdrawals and/or transfers from each of said client demand accounts;

determining electronically on a regular basis one or more net transactions as sums of said deposits and/or transfers to and said withdrawals and/or transfers from said client demand accounts;

causing funds to be deposited and/or transferred to or withdrawn and/or transferred from said one or more FDIC-insured and interest-bearing deposit accounts based on the determination of said one or more net transactions, so that FDIC insurance coverage greater than the maximum FDIC insurance coverage allowed for each depositor in a FDIC-insured banking institution is effectively provided for each client, and wherein the manner of making said withdrawals and/or transfers from at least one of said FDIC-insured and interest-bearing deposit accounts preserves that account'"'"'s interest-bearing status regardless of the number of said withdrawals and/or transfers from said at least one of said FDIC-insured and interest-bearing deposit accounts made during a month;

updating a database, maintained on one or more computers, comprising information for each client demand account with that client'"'"'s deposits and/or transfers to and withdrawals and/or transfers from said each client demand account;

determining electronically whether each client'"'"'s funds held in a banking institution are more than a specified amount; and

distributing any amounts over said specified amount into at least one other FDIC-insured and interest-bearing deposit account at least one other banking institution.