Systems and methods for money fund banking with flexible interest allocation

• US 8,566,200 B1
• Filed: 08/22/2012
• Issued: 10/22/2013
• 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): AMELUNXEN, BARBARA J
• Application Number:
  US13/591,793
• Time in Patent Office: 426 Days
• Field of Search: 705/35, 705/36.R, 705/39, 705/38, 705/37
• 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

Method, system and program product, the method comprising: accessing databases comprising: aggregated account information FDIC-insured and interest-bearing aggregated deposit accounts held in banks in a program, wherein funds from a first plurality client accounts are associated with broker dealers, and client account information, obtaining fund transfer data for broker-dealer client accounts; allocating amounts to banks in the program; determining funds to be transferred to or from the banks based on the allocating step; updating databases; determining a respective interest rate from among at least three different interest rates based at least in part on criteria so that funds of some client accounts held in a respective one of the aggregated deposit accounts earns interest at a different interest rate from the funds of other client accounts held in the respective one aggregated deposit account; calculating for client accounts respective interest amounts.

Claims

1. A method, comprising:

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

(i) aggregated account information for a plurality of Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing aggregated deposit accounts held in a plurality of banks in a program, wherein funds from a first plurality client accounts associated with one or more broker dealers are held in the aggregated deposit accounts in the banks in the program, the aggregated account information for a respective one of the aggregated deposit accounts comprising a balance of funds held in the respective aggregated deposit account; and

(ii) client account information for each of the respective client accounts, wherein the client account represents funds of the respective client held in the one or more aggregated deposit accounts holding funds of the respective client, the client account information comprising a respective balance of funds from the respective client account held in each of the one or more insured and interest-bearing aggregated deposit accounts holding funds of the respective client account; and

(B) receiving or obtaining, using the one or more computers, fund transfer data for one or more of the client accounts of a broker-dealer;

(C) allocating, using the one or more computers, one or more respective amounts to one or more of the banks participating in the program to be held in one or more of the aggregated deposit accounts to take into account at least in part the fund transfer data for the one or more of the client accounts;

(D) determining, using the one or more computers, an amount of funds to be transferred to or from one or more of the one or more of the banks based at least in part on the allocating step;

(E) updating in the one or more electronic databases, using the one or more computers, the client account information for each of a second plurality of the client accounts, with update data for each of these client accounts comprising the respective balance of funds from the respective client account held in each of the one or more insured and interest-bearing aggregated deposit accounts holding funds of the respective client account based at least in part on results of the allocating step;

(F) determining, using the one or more computers, for each of a third plurality of the respective client accounts a respective interest rate from among at least three different interest rates based at least in part on one or more criteria so that funds of some client accounts held in a respective one of the aggregated deposit accounts earns interest at a different interest rate from the funds of other client accounts held in the respective one aggregated deposit account;

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

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

(I) determining for each of a fifth plurality of the respective client accounts, using the one or more computers, interest earned for the respective client account on funds held during the period in each of the one or more aggregated deposit accounts in the program holding funds of the respective client account; and

(J) updating or having updated the one or more electronic databases, using the one or more computers, to include the respective interest earned for the respective client accounts based at least in part on the funds of the respective client account held in the one or more aggregated deposit accounts.

2. The method as defined in claim 1, wherein the fund transfer data received, using the one or more computers, comprises client funds that exceed a target balance in a customer financial entity account of the respective client.

3. The method as defined in claim 1, wherein the allocating step comprises allocating funds of a respective one of the client accounts to a first one of the banks in the program for one or more of the one or more aggregated deposit accounts held therein, up to a predetermined amount, and then allocating remaining funds of the client account up to the predetermined amount to a second one of the banks in the program for one or more of the one or more aggregated deposit accounts held therein.

4. The method as defined in claim 1,

wherein one of the plurality of the banks is designated as a primary bank for one of the client accounts, and

wherein the allocating step comprises allocating funds of the respective one client account up to a predetermined amount to each of the banks in the program for one or more of the one or more aggregated deposit accounts held therein, and then allocating remaining funds of the respective one client account to the primary bank for the respective one client account.

5. The method as defined in claim 1,

wherein the fund transfer data received or obtained using the one or more computers comprises transaction data from an external ACH system, and

wherein the one or more computers are linked via one or more electronic networks to one or more computers of the external ACH system.

6. The method as defined in claim 1,

wherein the fund transfer data received or obtained using the one or more computers comprises transaction data from an external credit card processing system, and

wherein the one or more computers are linked via one or more electronic networks to one or more computers of the external credit card processing system.

7. The method as defined in claim 1,

wherein the fund transfer data received or obtained using the one or more computers comprises transaction data from an external debit card processing system, and

wherein the one or more computers are linked via one or more electronic networks to one or more computers of the external debit card processing system.

8. The method as defined in claim 1,

wherein the fund transfer data received or obtained using the one or more computers comprises transaction data from a check/draft payments system, and

wherein the one or more computers are linked via one or more electronic networks to one or more computers of the check/draft payment system.

9. The method as defined in claim 1,

wherein the fund transfer data received or obtained using the one or more computers comprises transaction data from an external FED wire transfers system, and

wherein the one or more computers are linked via one or more electronic networks to one or more computers of the external FED wire transfers system.

10. The method as defined in claim 1,

wherein the fund transfer data received or obtained using the one or more computers comprises transaction data via input received from a telephone, and

wherein the one or more computers are linked via one or more electronic networks to the telephone.

11. The method as defined in claim 1,

wherein the fund transfer data received or obtained using the one or more computers comprises transaction data via the Internet,

and

wherein the one or more computers are linked via one or more electronic networks to the Internet.

12. The method as defined in claim 1, wherein one of the one or more criteria for determining the interest rate comprises a sum of balances of a plurality of the client accounts associated with client.

13. The method as defined in claim 1, wherein one of the one or more criteria for determining the interest rate for a respective one of the client accounts comprises a balance of client funds of the client account managed in the program.

14. The method as defined in claim 1,

wherein each of a fourth plurality of the client accounts are associated with a respective customer financial entity and have respective customer financial accounts therewith, and

wherein one of the one or more criteria for determining the interest rate for a respective one of the fourth plurality of the client accounts comprises a balance of funds of the respective customer account at the customer financial entity.

15. The method as defined in claim 1, wherein one of the one or more criteria for determining the interest rate for a respective one of the client accounts comprises a date on which the respective one client account was opened.

16. The method as defined in claim 1, wherein one of the one or more criteria for determining the interest rate for a respective one of the client accounts comprises a duration associated with the respective one client account.

17. The method as defined in claim 1, wherein one of the one or more criteria for determining the interest rate for a respective one of the client accounts comprises a duration associated with the respective interest rate.

18. The method as defined in claim 1, wherein one of the one or more criteria for determining the interest rate for a respective one of the client accounts comprises whether a promotional rate applies.

19. The method as defined in claim 1, wherein one of the one or more criteria for determining the interest rate for a respective one of the client accounts comprises a respective client financial entity associated with the respective one client account.

20. The method as defined in claim 1, wherein one of the one or more criteria for determining the interest rate for a respective one of the client accounts comprises a respective residence of the client associated with the respective one client account.

21. The method as defined in claim 1, wherein one of the one or more criteria for determining the interest rate for a respective one of the client accounts comprises a customer type of the client associated with the respective one client account.

22. The method as defined in claim 1,

wherein each of a fourth plurality of the client accounts are associated with a respective customer financial entity, and

wherein one of the one or more criteria for determining the interest rate for a respective one of the client accounts of the fourth plurality of the client accounts comprises an amount borrowed by the respective client associated with the respective one client account from the respective customer financial entity.

23. The method as defined in claim 1,

wherein each of a fourth plurality of the client accounts are associated with a respective customer financial entity, and

wherein one of the one or more criteria for determining the interest rate for a respective one of the fourth plurality of the client accounts comprises a length of time that the respective client associated with the respective one client account has transacted business with the respective customer financial entity.

24. The method as defined in claim 1, wherein one or more of the aggregated deposit accounts comprise an FDIC-insured interest-bearing aggregated money market deposit account.

25. The method as defined in claim 1, wherein one or more of the aggregated deposit accounts comprise at least one FDIC-insured interest-bearing aggregated NOW account.

26. The method as defined in claim 1, wherein at least one of the aggregated deposit accounts held in at least one of the banks comprises an FDIC-insured interest-bearing aggregated money market deposit account, and the at least one bank further holds an FDIC-insured aggregated demand deposit account associated with the program;

and

wherein the method further comprises generating or have generated instructions to withdraw funds from the FDIC-insured aggregated money market deposit account via the FDIC-insured aggregated demand deposit account.

27. The method as defined in claim 1,

wherein each of a fourth plurality of the client accounts are associated with a respective customer financial entity, and

wherein the allocating step, using the one or more computers, comprises allocating funds to or from one or more of the fourth plurality of client accounts to one or more of the banks participating in the program that are affiliated with the customer financial entity.

28. A system, comprising:

one or more computers connected to access computer-readable memory that is configured with programming code that is capable, when executed, to cause the following steps to be performed;

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

(i) aggregated account information for a plurality of Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing aggregated deposit accounts held in a plurality of banks in a program, wherein funds from a first plurality client accounts associated with one or more broker dealers are held in the aggregated deposit accounts in the banks in the program, the aggregated account information for a respective one of the aggregated deposit accounts comprising a balance of funds held in the respective aggregated deposit account; and

(ii) client account information for each of the respective client accounts, wherein the client account represents funds of the respective client held in the one or more aggregated deposit accounts holding funds of the respective client, the client account information comprising a respective balance of funds from the respective client account held in each of the one or more insured and interest-bearing aggregated deposit accounts holding funds of the respective client account; and

(B) receiving or obtaining, using the one or more computers, fund transfer data for one or more of the client accounts of a broker-dealer;

(C) allocating, using the one or more computers, one or more respective amounts to one or more of the banks participating in the program to be held in one or more of the aggregated deposit accounts to take into account the fund transfer data for the one or more of the client accounts;

(D) determining, using the one or more computers, an amount of funds to be transferred to or from one or more of the one or more of the banks based at least in part on the allocating step;

(E) updating in the one or more electronic databases, using the one or more computers, the client account information for each of a second plurality of the client accounts, with update data for each of these client accounts comprising the respective balance of funds from the respective client account held in each of the one or more insured and interest-bearing aggregated deposit accounts holding funds of the respective client account based at least in part on results of the allocating step;

(F) determining, using the one or more computers, for each of a third plurality of the respective client accounts a respective interest rate from among at least three different interest rates based at least in part on one or more criteria so that funds of some client accounts held in a respective one of the aggregated deposit accounts earns interest at a different interest rate from the funds of other client accounts held in the respective one aggregated deposit account;

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

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

(I) determining for each of a fifth plurality of the respective client accounts, using the one or more computers, interest earned for the respective client account on funds held during the period in each of the one or more aggregated deposit accounts in the program holding funds of the respective client account; and

(J) updating or having updated the one or more electronic databases, using the one or more computers, to include the respective interest earned for the respective client accounts based at least in part on the funds of the respective client account held in the one or more aggregated deposit accounts.