System and method for pre-funding interest for early termination of client account having funds in one or more aggregated accounts

• US 7,672,902 B1
• Filed: 06/25/2007
• Issued: 03/02/2010
• Est. Priority Date: 02/28/2007
• Status: Active Grant

• 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): Cheung; Mary
• Assistant Examiner(s): AMELUNXEN, BARBARA J
• Application Number:
  US11/767,856
• Time in Patent Office: 981 Days
• Field of Search: 235/380, 705/35, 705/37, 705/39, 705/36.R
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method, program product and system for pre-funding interest in the process of managing a group of aggregated accounts, each aggregated account held in a different one of a plurality of deposit institutions, each of the aggregated accounts associated with at least one financial entity and holding funds of a plurality of clients of the at least one financial entity, each of the clients having a client asset balance in a respective client account associated with the at least one financial entity, the method comprising: (a) receiving or calculating a pre-funding amount for interest for one or more client accounts; (b) receiving access to or obtaining control over funds for the pre-funding amount; (c) receiving information about a termination of a given client account with funds held in the one or more aggregated accounts prior to an end of an interest period; (d) receiving or calculating an interest payment due to the client account for the client asset balance; and (e) transferring before the end of the interest period an amount from the funds for the pre-funding amount to satisfy the interest payment due for the one or more aggregated accounts.

Claims

1. A method for pre-funding interest in a process of managing a group of Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing aggregated accounts held in a plurality of deposit institutions, comprising:

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

(1) aggregated transaction account information for a plurality of FDIC-insured and interest-bearing aggregated accounts held in a plurality of deposit institutions in a program, each of the aggregated accounts holding funds of a plurality of client transaction accounts;

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

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

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

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

(B) obtaining, by the one or more computers, transaction data for clients'"'"' deposits/transfers to and withdrawals/transfers from a plurality of said client transaction accounts for a sub-period of time within an interest period, said transaction data comprising transaction data for one or more deposits/transfers for one or more client transaction accounts and/or transaction data for one or more withdrawals/transfers from a plurality of said client transaction accounts, with the transaction data comprising a respective amount for each respective deposit/transfer and each respective withdrawal/transfer;

(C) calculating, by the one or more computers, an aggregated transaction amount based on a total net transaction from the transaction data for a plurality of the client transaction accounts during the sub-period of time;

(D) generating instructions, by the one or more computers, to deposit/transfer funds to or withdraw/transfer funds from at least one of the aggregated accounts to cause a transfer of the aggregated transaction amount for the sub-period; and

(E) updating, by the one or more computers, one or more of the electronic databases with data for each of a plurality of the client transaction accounts, with the data for each of the client transaction accounts comprising a respective balance of funds of the respective client transaction account held in each of one or more of the deposit institutions holding funds of the respective client transaction account;

(F) receiving or calculating, by the one or more computers, a pre-funding amount for interest for one or more client transaction accounts before an end of the interest period;

(G) receiving access to or obtaining control over funds for the pre-funding amount before the end of the interest period;

(H) receiving information about a termination of one of the client transaction accounts having funds held in the one or more aggregated accounts, where a date of the termination is prior to the end of the interest period;

(I) receiving or calculating, by the one or more computers, an interest payment due to the given client transaction account to the termination date for the respective balance of funds from the given client transaction account held in each of the one or more aggregated accounts holding funds of the client transaction account; and

(J) generating an instruction, by the one or more computers, to transfer during and before the end of the interest period an amount from the funds for the pre-funding amount to satisfy the interest payment due for the funds held in the one or more aggregated accounts for the one client transaction account that was terminated.

2. The method of claim 1, further comprising generating a report on a periodic basis that includes the calculated term-to-date interest due to the one or more client accounts.

3. The method of claim 1, wherein the step of receiving access to or obtaining control over funds for the pre-funding amount occurs at the beginning of the interest period.

4. The method of claim 1, further comprising requesting a transfer from the one or more of the deposit institutions of interest that has been posted in the respective one or more client accounts that were terminated.

5. The method of claim 1, further comprising transferring or having transferred from the one or more of the deposit institutions all or a portion of interest that has been posted in the respective one or more client accounts that were terminated to a customer interest account maintained in an intermediary bank that holds the pre-funding amount.

6. A system for pre-funding interest in a process of managing a group of Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing aggregated accounts held in a plurality of deposit institutions, comprising:

one or more electronic databases, stored on one or more computers-readable media, the one or more databases comprising;

(1) aggregated transaction account information for a plurality of FDIC-insured and interest-bearing aggregated accounts held in a plurality of deposit institutions in a program, each of the aggregated accounts holding funds of a plurality of client transaction accounts;

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

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

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

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

one or more computers operably connected to the one or more databases for implementing the following components;

(A) a component for accessing one or more electronic databases,

(B) a component for obtaining transaction data for clients'"'"' deposits/transfers to and withdrawals/transfers from a plurality of said client transaction accounts for a sub-period of time within an interest period, said transaction data comprising transaction data for one or more deposits/transfers for one or more client transaction accounts and/or transaction data for one or more withdrawals/transfers from a plurality of said client transaction accounts, with the transaction data comprising a respective amount for each respective deposit/transfer and each respective withdrawal/transfer;

(C) a component for calculating an aggregated transaction amount based on a total net transaction from the transaction data for a plurality of the client transaction accounts during the sub-period of time;

(D) a component for generating instructions to deposit/transfer funds to or withdraw/transfer funds from at least one of the aggregated accounts to cause a transfer of the aggregated transaction amount for the sub-period;

(F) a component for updating one or more of the electronic databases with data for each of a plurality of the client transaction accounts, with the data for each of the client transaction accounts comprising a respective balance of funds of the respective client transaction account held in each of one or more of the deposit institutions holding funds of the respective client transaction account;

(G) a component for receiving or calculating a pre-funding amount for interest for one or more client transaction accounts before an end of the interest period;

(H) a component for receiving access to or obtaining control over funds for the pre-funding amount before the end of the interest period;

(I) a component for receiving information about a termination of one of the client transaction accounts having funds held in the one or more aggregated accounts, where a date of the termination is prior to the end of the interest period;

(J) a component for receiving or calculating an interest payment due to the given client transaction account to the termination date for the respective balance of funds from the given client transaction account held in each of the one or more aggregated accounts holding funds of the client transaction account; and

(K) a component for generating an instruction to transfer during and before the end of the interest period an amount from the funds for the pre-funding amount to satisfy the interest payment due for the funds held in the one or more aggregated accounts for the one client transaction account that was terminated.

7. The system of claim 6, further comprising a report generator for generating a report on a periodic basis that includes the calculated term-to-date interest due to the one or more client accounts.

8. The system of claim 6, wherein the component for receiving access to or obtaining control over funds for the pre-funding amount is designed to access or obtain control over funds at the beginning of the interest period.

9. The system of claim 6, further comprising a component for requesting a transfer from the one or more of the deposit institutions of interest that has been posted in the respective one or more client accounts that were terminated.

10. The system of claim 6, further comprising a component for transferring or having transferred from the one or more of the deposit institutions all or a portion of interest that has been posted in the respective one or more client accounts that were terminated to a customer interest account maintained in an intermediary bank that holds the pre-funding amount.

11. A program product for pre-funding interest in a process of managing a group of Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing aggregated accounts held in a plurality of deposit institutions, comprising:

one or more computer usable media having computer readable program code embodied therein or among them, to be executed by a computer, the computer readable program code comprising

(A) program code for accessing one or more electronic databases, stored on one or more computers-readable media, the one or more databases comprising;

(1) aggregated transaction account information for a plurality of FDIC-insured and interest-bearing aggregated accounts held in a plurality of deposit institutions in a program, each of the aggregated accounts holding funds of a plurality of client transaction accounts;

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

account;

(a) a respective balance in the respective client transaction

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

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

(B) program code for obtaining transaction data for clients'"'"' deposits/transfers to and withdrawals/transfers from a plurality of said client transaction accounts for a sub-period of time within an interest period, said transaction data comprising transaction data for one or more deposits/transfers for one or more client transaction accounts and/or transaction data for one or more withdrawals/transfers from a plurality of said client transaction accounts, with the transaction data comprising a respective amount for each respective deposit/transfer and each respective withdrawal/transfer;

(C) program code for calculating an aggregated transaction amount based on a total net transaction from the transaction data for a plurality of the client transaction accounts during the sub-period of time;

(D) program code for generating instructions to deposit/transfer funds to or withdraw/transfer funds from at least one of the aggregated accounts to cause a transfer of the aggregated transaction amount for the sub-period; and

(E) program code for updating one or more of the electronic databases with data for each of a plurality of the client transaction accounts, with the data for each of the client transaction accounts comprising a respective balance of funds of the respective client transaction account held in each of one or more of the deposit institutions holding funds of the respective client transaction account;

(F) program code for receiving or calculating a pre-funding amount for interest for one or more client transaction accounts before an end of the interest period;

(G) program code for receiving access to or obtaining control over funds for the pre-funding amount before the end of the interest period;

(H) program code for receiving information about a termination of one of the client transaction accounts having funds held in the one or more aggregated accounts, where a date of the termination is prior to the end of the interest period;

(I) program code for receiving or calculating an interest payment due to the given client transaction account to the termination date for the respective balance of funds from the given client transaction account held in each of the one or more aggregated accounts holding funds of the client transaction account; and

(J) program code for generating an instruction to transfer during and before the end of the interest period an amount from the funds for the pre-funding amount to satisfy the interest payment due for the funds held in the one or more aggregated accounts for the one client transaction account that was terminated.

12. The program product of claim 11, further comprising program code for generating a report on a periodic basis that includes the calculated term-to-date interest due to the one or more client accounts.

13. The program product of claim 11, wherein the program code for receiving access to or obtaining control over funds for the pre-funding amount is designed to operate at the beginning of the interest period.

14. The program product of claim 11, further comprising program code for requesting a transfer from the one or more of the deposit institutions of interest that has been posted in the respective one or more client accounts that were terminated.

15. The program product of claim 11, further comprising program code for transferring or having transferred from the one or more of the deposit institutions all or a portion of interest that has been posted in the respective one or more client accounts that were terminated to a customer interest account maintained in an intermediary bank that holds the pre-funding amount.