Systems and methods for money fund banking with flexible interest allocation

• US 7,668,772 B1
• Filed: 11/14/2008
• Issued: 02/23/2010
• Est. Priority Date: 10/21/1998
• Status: Expired due to Fees

• Current Assignee: Island Intellectual Property LLC (Double Rock Corporation)
• Original Assignee: Island Intellectual Property LLC (Double Rock Corporation)
• Inventors: Bent, Bruce, Bent, Bruce II
• Primary Examiner(s): Trammell; James P
• Assistant Examiner(s): Amelunxen; B. Joan
• Application Number:
  US12/271,705
• Time in Patent Office: 466 Days
• Field of Search: 705/4, 705/36.R, 705/37, 705/39, 705/42, 705/35, 705/38
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 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 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

This invention provides system and methods for managing accounts of clients at customer financial entities so that deposits of up to $100,000 or greater are insured, so that interest income earned on a portion of all of the account balances may be flexibly allocated according to customer instructions, and so that withdrawals are not limited. These objects are satisfied by holding client funds at interest-earning money market deposit accounts at one or more banks or savings institutions. More particularly, this invention provides methods for receiving client transaction information, determining a net transfer of funds into or out of each client account from transaction information, causing transfer of funds from the insured, interest-bearing deposit accounts to match the net transfer of funds into or out of each client account, and allocating interest earned by the deposit accounts to clients according to customer instructions. This invention also provides systems and software products implementing these methods.

Claims

1. A method for managing funds of a plurality of respective client transaction accounts in a bank, the respective client transaction accounts associated with a plurality of respective clients participating in a program, comprising:

(A) accessing one or more electronic databases, stored on one or more computer-readable media, comprising;

(i) aggregated account information for one or more Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing aggregated deposit accounts held in one or more banks in a program, wherein funds from client transaction accounts of a plurality of clients are held with funds of other client transaction accounts in the one or more aggregated deposit accounts held in the one or more banks in the program; and

(ii) client account information for each of the respective client transaction accounts comprising;

(1) a respective balance in the respective client transaction account;

(2) transaction data for the respective client transaction account; and

(3) a respective balance of funds from the respective client transaction account held in each of the one or more insured and interest-bearing aggregated deposit accounts holding funds of the respective client transaction account; and

(B) receiving, by the one or more computers, electronic client transaction data describing debit and/or credit transactions made by a plurality of the respective clients against their respective client transaction accounts;

(C) updating, by the one or more computers, the respective balance of funds in the one or more electronic databases for each of a plurality of the respective client transaction accounts based on one or more debit and/or credit transactions made for the respective client transaction account;

(D) generating instructions to transfer funds to be held in at least one of the one or more aggregated deposit accounts based on the client transaction data or to withdraw funds from at least one of the one or more aggregated deposit accounts based on the client transaction data;

(E) determining, by the one or more computers, for each of the plurality of the client transaction accounts a respective interest rate from among at least three different interest rates based on one or more criteria so that different clients having funds in the one or more aggregated deposit accounts are accorded different interest rates;

(F) calculating, by the one or more computers, or having calculated by one or more computers, for each of one or more of the client transaction accounts determined to have a first interest rate of the at least three interest rates, a respective interest for funds of the respective client transaction account held in the one or more aggregated deposit accounts, for a period using the first interest rate, with the calculating being independent from the respective client transaction account pro rata share in earnings posted for the one or more aggregated deposit accounts holding funds of the respective client transaction account;

(G) calculating, by the one or more computers, or having calculated by one or more computers, for each of one or more of the client transaction accounts determined to have a second interest rate of the at least three interest rates, a respective interest for funds of the respective client transaction account held in the one or more aggregated deposit accounts, for the period using the second interest rate, with the calculating being independent from the respective client transaction account pro rata share in earnings posted for the one or more aggregated deposit accounts holding funds of the respective client transaction account;

(H) determining, by the one or more computers, interest earned on funds held during the period in each of the one or more aggregated deposit accounts in the program; and

(I) posting electronically the respective interest for each of a plurality of respective client transaction accounts based on the respective interest rate determined for the funds of the respective client transaction account held in the one or more aggregated deposit accounts.

2. The method as defined in claim 1, further comprising

withdrawing or having withdrawn client funds from the FDIC-insured and interest-bearing aggregated deposit account held at least one of the one or more banks in the program more than six (6) times during a month while preserving an insured and interest-bearing status of the FDIC-insured and interest-bearing aggregated deposit account held at the bank.

3. The method as defined in claim 2, wherein the FDIC-insured and interest-bearing deposit account held at least one of the one or more of the banks in the program is an aggregated money market deposit account.

4. The method as defined in claim 3, wherein the withdrawing or having withdrawn step is made from the aggregated money market deposit account at the at least one of the one or more banks with the aggregated money market deposit account through an aggregated demand deposit account at the bank.

5. The method as defined in claim 1, further comprising administering clients'"'"' deposits/transfers to and withdrawals/transfers from each of said client transaction accounts, said administering step comprising processing, by the one or more computers, at least six (6) withdrawals/transfers from at least one selected from the group of checks, debit cards, ACH transfer, and credit cards within a month from each of a plurality of said client transaction accounts.

6. The method as defined in claim 1, wherein the respective interest rate is determined based on the respective balance of funds electronically associated with the client transaction account in the one or more databases.

7. The method as defined in claim 1, wherein one or more of the steps of the method are performed by one or more agent entity computers managing the client transaction accounts on behalf of the bank holding the client transaction, and further comprising the memory for the one or more agent entity computers storing computer-readable instructions that, when executed, cause the one or more computers to perform at least the steps:

determining or having determined from the electronic client transaction data a net credit or a net debit to be applied to the aggregated deposit account; and

generating instructions for one or more transfers with the aggregated deposit account to satisfy the determined net credit or net debit.

8. The method as defined in claim 1, wherein the one or more criteria for the respective client transaction account comprise the updated balance of funds for the respective client transaction account in relation to a set of balance ranges.

9. The method as defined in claim 8, wherein there are a plurality of banks in the program, each of the banks with at least one aggregated deposit account, and wherein the one or more electronic databases maintain client transaction account information comprising at least one client'"'"'s funds held in one or more aggregated deposit accounts in a plurality of said banks in the program.

10. The method as defined in claim 1, wherein the one or more criteria for the respective client transaction account comprise a relationship status.

11. The method as defined in claim 1, wherein the one or more criteria for the respective client transaction account comprise at least one selected from the group of agent-managed client transaction account balances at the bank holding the client transaction accounts, total client transaction account balances at the bank, a date the client transaction account was opened, a duration the client has transacted business with the bank holding the client transaction account, an address of the client transaction account, and policies and promotions of the bank holding the client transaction account.

12. The method as defined in claim 1, wherein there are a plurality of banks in the program, each of the banks with at least one aggregated deposit account, and wherein the one or more electronic databases maintain client account information comprising at least one client'"'"'s funds held in one or more aggregated deposit accounts in a plurality of said banks in the program.