Method and system for allocating funds over a plurality of time deposit instruments in depository institutions

• US 8,370,236 B1
• Filed: 11/23/2010
• Issued: 02/05/2013
• Est. Priority Date: 11/24/2009
• 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, Bent, Rebecca Gareis, Gareis, David Edgar
• Primary Examiner(s): Robinson, Kito R
• Application Number:
  US12/953,221
• Time in Patent Office: 805 Days
• Field of Search: 705/4, 705/35, 705/39
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method, system and program product, the method in one embodiment comprising: A method, comprising: accessing databases comprising: client information for each of a plurality of respective clients, comprising a balance of funds of the client; a distribution percent value, X_i, for tranches; information for each of multiple government backed-insured aggregated time deposit instruments holding a tranche of client funds, comprising: a rate; an identification of the depository institution; a term; and determining a given client available distribution amount, D_i; determining an amount of a client tranche to be deposited in each of N_i depository institutions based at least in part on the percentage, X_i, in order that the client tranches are approximately equal and are insured; determining N_i depository institutions to distribute the client tranches; allocating substantially equally respective client tranches to the N_i depository institutions; generating data for instructions to transfer the respective client tranches; updating, the databases.

Claims

1. A method, comprising:

A. accessing, by one or more computers, one or more electronic databases, stored on one or more computer-readable media, comprising;

(1) client information for each of a plurality of respective clients, i, comprising information on client funds held through a program in each of a plurality of depository institutions participating in the program, with information for a respective client comprising;

(i) a balance of funds of the client held through the program in each of multiple of the depository institutions holding funds of the respective client;

(ii) a distribution percent value, X_i, of a given client deposit amount, to be distributed in tranches to each of N_i depository institutions;

(2) information for each of multiple government backed-insured aggregated time deposit instruments holding a tranche of client funds, comprising;

(i) a rate for the respective aggregated time deposit instrument;

(ii) an identification of the depository institution holding the respective aggregated time deposit instrument;

(iii) a term of the respective aggregated time deposit instrument holding funds of the respective client, and

B. performing the following steps for each of multiple of the clients, i;

(1) determining, by the one or more computers, a given client available distribution amount, D_i, for the respective client, i, comprising funds to be distributed over N_i of the depository institutions for the respective client;

(2) determining, by the one or more computers, an amount of a client tranche to be deposited in each of N_i depository institutions based at least in part on the percentage, X_i, obtained from the one or more electronic databases, and the respective client available distribution amount, D_i, in order that the client tranches are approximately equal and the funds are insured with government-backed insurance;

(3) determining, based at least in part on the percentage X_i, a value of N_i depository institutions for the respective client, to distribute the client tranches;

(4) allocating substantially equally, by the one or more computers, respective client tranches to the N_i depository institutions determined for the client, i;

(C) generating, by the one or more computers, data for instructions to transfer the respective client tranches and to purchase one or more financial instruments in each of the respective N_i depository institutions, comprising a purchase of one or more aggregated time deposit instruments at multiple of the respective N_i depository institutions; and

(D) updating, by the one or more computers, one or more of the electronic databases with update data for each of multiple of the clients, i, with the update data for each of the multiple clients, i, comprising data for respective client tranches transferred or to be transferred to purchase the one or more aggregated time depository instruments at the respective N_i depository institutions for the client.

2. The method as defined in claim 1, wherein the aggregated time deposit instruments holding the tranches may comprise one or more selected from the group of bonds, treasury bills, and certificates of deposit.

3. The method as defined in claim 1, wherein the generating instructions step comprises generating an instruction to transfer at least one of the respective client tranches for purchase for the client at one or more of the N_i depository institutions of a different type of depository instrument relative to the time deposit instrument where one or more withdrawals can be made without penalty.

4. The method as defined in claim 3, further comprising:

receiving a request to withdraw an amount of funds for a given one of the clients; and

generating, by one or more computers, data for an instruction based at least in part on the amount of the request to withdraw, with the amount to be taken from one or more of the different type of depository instrument.

5. The method as defined in claim 4, wherein the different type of depository instrument is an interest-bearing aggregated deposit account holding funds of a plurality of the clients.

6. The method as defined in claim 3, wherein the different type of depository instrument is an aggregated money market deposit account that is insured by the Federal Deposit Insurance Corporation.

7. The method as defined in claim 1, further comprising:

aggregating, by the one or more computers, the respective client tranches of multiple of the different clients into a plurality of respective purchase amounts to purchase respective aggregated time deposit instrument from multiple of the depository institutions; and

generating data for instructions to transfer the respective purchase amounts to the respective depository institutions.

8. The method as defined in claim 7, further comprising:

selecting respective client tranches of multiple of the respective clients for aggregation into the respective purchase amounts for purchase of the aggregated time deposit instruments from multiple of the depository institutions based, at least in part, on one or more criteria.

9. The method as defined in claim 8, wherein one criterion is that only client tranches from client available distribution amounts, D_i, above a threshold amount, are aggregated into the respective purchase amounts for purchase of the aggregated time deposit instruments from the multiple depository institutions.

10. The method as defined in claim 8, wherein one criterion is that only client tranches from client available distribution amounts, D_i, associated in the one or more databases with a particular source institution are aggregated into the respective purchase amounts for purchase of the aggregated time deposit instruments from the multiple depository institutions.

11. The method as defined in claim 8, wherein one criterion is a term requested by the client for the client available deposit amount, D_i, meets at least one predetermined criterion.

12. The method as defined in claim 1, further comprising:

purchasing the aggregated time deposit instrument electronically by the one or more computers and via one or more electronic networks.

13. The method as defined in claim 1, further comprising:

receiving an order from a respective one of the depository institutions that is a source institution to distribute one or more client available distribution amounts, D_i of funds of clients of the respective source depository institution, for the purchase of a plurality of aggregated time deposit instruments;

wherein the one or more databases further comprise information designating a source depository institution for each of multiple of the respective client available distribution amounts, D_i; and

wherein the allocating step further comprises;

selecting, by the one or more computers, at least one of the depository institutions participating in the program for purchase of one or more aggregated time deposit instruments based, at least in part, on whether or not one or more orders have been received from the respective at least one depository institution to distribute one or more client available distribution amounts, D_i, of clients of that respective one depository institution for the purchase of a plurality of aggregated financial instruments at other of the depository institutions participating in the program.

14. The method as defined in claim 13, wherein the selecting of the at least one depository institution for the purchase of one or more aggregated time deposit instruments is further based, at least in part, on whether a total of the one or more client available distribution amounts, D_i, of funds received from the respective at least one depository institution and distributed to other depository institutions in the program, is more than an amount that the respective at least one depository institution has received in client tranches associated with other source institutions participating in the program.

15. The method as defined in claim 1, further comprising:

selecting, by the one or more computers, multiple of the depository institutions in the program for the purchase of one or more aggregated time deposit instruments based, at least in part, on how close a rate and term of an aggregated time deposit instrument available from the respective one depository institution matches a rate promised to the respective client, i;

aggregating, by the one or more computers, the respective client tranches of multiple of the different clients into a plurality of respective purchase amounts to purchase respective aggregated time deposit instruments from the multiple respective selected depository institutions; and

generating data for instructions to transfer the respective purchase amounts to the respective selected depository institutions.

16. The method as defined in claim 1, further comprising:

selecting, by the one or more computers, at least one of the depository institutions for the purchase of one or more time deposit instruments based, at least in part, on a stability grade rating for the respective at least one depository institution.

17. The method as defined in claim 1,

wherein the one or more databases further comprise data on a source institution for each of a plurality of the client available distribution amounts, D_i;

and further comprising;

selecting, by the one or more computers, one or more of the depository institutions for the purchase of one or more aggregated time deposit instruments based, at least in part, on whether the respective depository institution is affiliated with the source institution for one or more of the client available distribution amounts, D_i to be used to purchase the one or more aggregated time deposit instruments;

aggregating, by the one or more computers, the respective client tranches of multiple of the different clients into a plurality of respective purchase amounts to purchase respective aggregated time deposit instruments from the multiple respective selected depository institutions; and

generating data, by the one or more computers, for instructions to transfer the respective purchase amounts to the respective selected depository institutions.

18. The method as defined in claim 1, further comprising:

determining, by the one or more computers, a fee for facilitating purchases of time deposit instruments and other depository instruments based on one or more criteria.

19. The method as defined in claim 18, wherein the fee is determined by comparing the client available distribution amount, D_i, to thresholds set forth in a tier table.

20. The method as defined in claim 1, wherein the government backed insurance is Federal Deposit Insurance Corporation (FDIC) insurance.

21. The method as defined in claim 1, further comprising:

determining client eligibility for having a given client available distribution amount, D_i, distributed in tranches among N_i depository institutions, based on one or more criteria;

aggregating, by the one or more computers, the respective client tranches of multiple of the different clients that are determined to be eligible, to form a plurality of respective purchase amounts to purchase respective aggregated time deposit instruments from the multiple respective selected depository institutions; and

generating data for instructions to transfer the respective purchase amounts to the respective selected depository institutions.

22. The method as defined in claim 21, wherein the one or more criteria comprises whether the client available distribution amount, D_i, for a given client equals or exceeds a threshold amount.

23. The method as defined in claim 21, wherein the one or more criteria comprises a relationship level with one of the depository institutions.

24. The method as defined in claim 1, further comprising:

allocating, by the one or more computers, a remainder amount, R_i of the given client available distribution amount, D_i, for the respective client, that occurs when the client percentage (X_i) times the number of depository institutions (N_i) determined for the client is less than 100, to one or more of the depository institutions; and

generating, by the one or more computers, data for instructions to transfer the remainder amount, R_i to purchase one or more financial instruments.

25. The method as defined in claim 24, wherein the instructions to purchase one or more financial instruments with the remainder amount, R_i comprise instructions to purchase at least one non-time deposit financial instrument.

26. The method as defined in claim 1, wherein the percentage, X_i, for a respective client is received by a communication from or on behalf of the respective client.

27. The method as defined in claim 1, further comprising:

reallocating funds of a first client from a respective time deposit instrument to a non-time deposit financial instrument, and allocating funds of a second client to the respective time deposit instrument in place thereof; and

withdrawing an amount of the funds of the first client from the non-time deposit financial instrument.

28. The method as defined in claim 1, wherein the percentage, X_i, for each of multiple of the clients is different.

29. A system, comprising:

one or more computers comprising memory wherein the memory stores computer-readable instructions comprising program code that, when executed, cause the one or more computers to perform the steps;

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

(1) client information for each of a plurality of respective clients, i, comprising information on client funds held through a program in each of a plurality of depository institutions participating in the program, with information for a respective client comprising;

(i) a balance of funds of the client held through the program in each of multiple of the depository institutions holding funds of the respective client;

(ii) a distribution percent value, X_i, of a given client deposit amount, to be distributed in tranches to each of N_i depository institutions;

(2) information for each of multiple government backed-insured aggregated time deposit instruments holding a tranche of client funds, comprising;

(i) a rate for the respective aggregated time deposit instrument;

(ii) an identification of the depository institution holding the respective aggregated time deposit instrument;

(iii) a term of the respective aggregated time deposit instrument holding funds of the respective client, and

B. performing the following steps for each of multiple of the clients, i;

(1) determining, by the one or more computers, a given client available distribution amount, D_i, for the respective client, i, comprising funds to be distributed over N_i of the depository institutions for the respective client;

(2) determining, by the one or more computers, an amount of a client tranche to be deposited in each of N_i depository institutions based at least in part on the percentage, X_i, obtained from the one or more electronic databases, and the respective client available distribution amount, D_i, in order that the client tranches are approximately equal and the funds are insured with government-backed insurance;

(3) determining, based at least in part on the percentage X_i, a value of N_i depository institutions for the respective client, to distribute the client tranches;

(4) allocating substantially equally, by the one or more computers, respective client tranches to the N_i depository institutions determined for the client, i;

(C) generating, by the one or more computers, data for instructions to transfer the respective client tranches and to purchase one or more financial instruments in each of the respective N_i depository institutions, comprising a purchase of one or more aggregated time deposit instruments at multiple of the respective N_i depository institutions; and

(D) updating, by the one or more computers, one or more of the electronic databases with update data for each of multiple of the clients, i, with the update data for each of the multiple clients, i, comprising data for respective client tranches transferred or to be transferred to purchase the one or more aggregated time depository instruments at the respective N_i depository institutions for the client.

30. The system as defined in claim 29, wherein the percentage, X_i, for each of multiple of the clients is different.