Automated process for fully insuring large bank deposits that provides compensating payments between banks that offer different deposit terms

• US 7,917,433 B2
• Filed: 10/15/2008
• Issued: 03/29/2011
• Est. Priority Date: 07/27/2001
• Status: Expired due to Fees

• Current Assignee: Intrafi LLC
• Original Assignee: Promontory Interfinancial Network LLC (Bank of New York Mellon Corporation)
• Inventors: Jacobsen, Mark P.
• Primary Examiner(s): Patel; Jagdish N
• Assistant Examiner(s): Poe; Kevin
• Application Number:
  US12/251,983
• Publication Number:
  US 20090043698A1
• Time in Patent Office: 895 Days
• Field of Search: 705/39
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• CPC Class Codes: G06Q 20/04 Payment circuits
• 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 40/06 Asset management; Financial planning or analysis

Abstract

An automated method and computer program product are provided for processing a large deposit that exceeds an established deposit insurance limit so that the large deposit is fully insured. The large deposit is received from a depositor by a first one of a plurality of unaffiliated banks. A processor receives an order placed by the first unaffiliated bank to process the large deposit. The first unaffiliated bank offers a first set of deposit terms to a first depositor. The processor assigns a portion of the large deposit not exceeding the established deposit insurance limit to a second one of the plurality of unaffiliated banks. The second unaffiliated bank offers a second set of deposit terms to a second depositor. The processor calculates the amount of a present value payment to be transferred between the first unaffiliated bank and the second unaffiliated bank to compensate for differences between the first and second sets of deposit terms.

Claims

1. An automated method of processing a large deposit that exceeds an established deposit insurance limit so that the large deposit is fully insured, the large deposit being received from a depositor by a first one of a plurality of unaffiliated banks, the method comprising:

(a) receiving at a processor an order placed by the first unaffiliated bank to process the large deposit, the first unaffiliated bank offering a first set of deposit terms to a first depositor;

(b) assigning by the processor a portion of the large deposit not exceeding the established deposit insurance limit to a second one of the plurality of unaffiliated banks, the second unaffiliated bank offering a second set of deposit terms to a second depositor; and

(c) calculating by the processor the amount of a present value payment to be transferred between the first unaffiliated bank and the second unaffiliated bank to compensate for differences between the first and second sets of deposit terms.

2. The method of claim 1 wherein the amount of the portion of the large deposit is substantially equivalent to the established deposit insurance limit, the method further comprising:

(d) transferring an interest payment to the depositor or to an account thereof each time that interest earned on the portion of the large deposit is compounded, so that the amount of the portion of the large deposit does not exceed the established insurance limit.

3. The method of claim 1 wherein the established deposit insurance limit is in accordance with U.S. law, regulations and rules established by the United States Federal Deposit Insurance Corporation (FDIC).

4. The method of claim 1 wherein the established deposit insurance limit is in accordance with U.S. law, regulations and rules established by the National Credit Union Administration (NCUA).

5. A computer program product for processing a large deposit that exceeds an established deposit insurance limit so that the large deposit is fully insured, the large deposit being received from a depositor by a first one of a plurality of unaffiliated banks, the computer program product comprising computer-readable media encoded with instructions for execution by a processor to perform a method comprising:

(a) receiving an order placed by the first unaffiliated bank to process the large deposit, the first unaffiliated bank offering a first set of deposit terms to a first depositor;

(b) assigning a portion of the large deposit not exceeding the established deposit insurance limit to a second one of the plurality of unaffiliated banks, the second unaffiliated bank offering a second set of deposit terms to a second depositor; and

(c) calculating the amount of a present value payment to be transferred between the first unaffiliated bank and the second unaffiliated bank to compensate for differences between the first and second sets of deposit terms.

6. The computer program product of claim 5 wherein the computer-readable media is encoded with instructions for execution by the processor to perform a method further comprising:

(d) transferring an interest payment to the depositor or to an account thereof each time that interest earned on the portion of the large deposit is compounded, so that the amount of the portion of the large deposit does not exceed the established insurance limit.

7. The computer program product of claim 5 wherein the established deposit insurance limit is in accordance with U.S. law, regulations and rules established by the United States Federal Deposit Insurance Corporation (FDIC).

8. The computer program product of claim 5 wherein the established deposit insurance limit is in accordance with U.S. law, regulations and rules established by the National Credit Union Administration (NCUA).