Systems and methods for money fund banking with flexible interest allocation

• US 8,583,545 B1
• Filed: 09/20/2011
• Issued: 11/12/2013
• Est. Priority Date: 09/20/2010
• 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, Gareis, David Edgar
• Primary Examiner(s): Oyebisi, Ojo O
• Application Number:
  US13/237,699
• Time in Patent Office: 784 Days
• Field of Search: 705/35, 705/40, 705/42, 705/39, 705/44, 705/38
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A method, system and program product, the method comprising: accessing, electronic databases, comprising: (i) aggregated account information for a plurality of government backed-insured and interest-bearing aggregated deposit accounts held in a plurality of program institutions; and (ii) source institution deposit information; obtaining transfer data, by a source institution; obtaining time dimension interest rate data, wherein the time dimension interest rate varies depending on how long the deposit has been held in one or more other of the recipient institutions participating in the program; allocating the deposit funds to one or more other of the recipient institutions; generating data for instructions to deposit/transfer funds and/or to withdraw/transfer funds; calculating a respective interest amount for funds of the respective source institutions, based on time dimension interest rate for the period of time; and generating data for allocating interest.

Claims

1. A method comprising:

accessing, using one or more computer, 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 banking institutions in a program, wherein funds from client accounts of a plurality of clients are held with funds of other client accounts in the plurality of aggregated deposit accounts held in the plurality of banking institutions 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, wherein there is no penalty for withdrawal of funds; and

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

(1) a respective client balance of funds held in the one or more interest-bearing aggregated deposit accounts held in the one or more banking institutions in the program;

(2) time data for the respective client account relating to a time parameter for a length of time funds are held in the aggregated deposit accounts in banking institutions participating in the program;

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

(4) source institution information for a respective one of the banking institutions in the program designated as a source banking institution for the respective client account;

obtaining, using the one or more computers, client deposit data and/or client withdrawal data directly or indirectly from one of the clients or on its behalf describing a deposit to or a withdrawal from the respective client account associated with the one client;

allocating one or more respective amounts to one or more of the program banking institutions (not including the source banking institution) participating in the program to take into account at least in part the respective client deposit data and/or the respective client withdrawal data;

allocating, using the one or more computers, at least a matching amount of non-term funds to the source banking institution;

determining or obtaining at the end of a length of time, using the one or more computers, based at least in part on the time data in the database on the length of time the funds of the respective client account have been held within a balance range in the one or more aggregated deposit accounts in the banking institutions participating in the program, a respective time-varying interest rate that is greater than a first interest rate;

calculating or having calculated, using the one or more computers, based at least in part on the balance of deposit funds of the respective client account from the one or more databases being held in the one or more of the recipient banking institutions as non-term funds and the length of time held based on the time data in the one or more databases, a lump sum amount that when added to interest calculated at the first rate is an interest sum that results in an amount calculated at the time-varying interest rate, and allocating this interest sum to the respective client account;

calculating or having calculated, using the one or more computers, for the respective client account determined to have the first interest rate, a respective interest amount based at least in part on the respective first interest rate for the respective client account, the balance of funds and the length of time held, as determined from the one or more databases, and allocating this interest sum to the respective client account;

communicating or having communicated the data on calculated interest amounts for the respective client accounts with funds held in the one or more aggregated deposit accounts in the program; and

updating, using the one or more computers, the one or more databases to reflect the added interest.

2. The method as defined in claim 1, wherein the first recited allocating step further comprises selecting one or more of the recipient institutions based at least in part a credit-worthiness of the respective recipient institution.

3. The method as defined in claim 1, wherein the funds of the client account to be deposited or to be withdrawn are time deposit funds.

4. The method as defined in claim 1, wherein the obtaining client deposit data and/or client withdrawal data comprises receiving one or more electronic networks sweep files containing the client deposit data and/or client withdrawal data.

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

transferring or having transferred, using the one or more computers and one or more electronic networks, funds based at least in part on one or more of the allocation steps.

6. The method as defined in claim 1, wherein the first recited allocating step further comprises selecting one or more of the recipient banking institutions for the first recited allocation based at least in part on an amount of funds the respective recipient banking institution has deposited for management under the program and is held in one or more other of the recipient banking institutions participating in the program.

7. The method as defined in claim 1, wherein the time-varying interest rate is determined using at least two-dimensional tiering, with the length of time the deposit funds are held as one dimension, and the balance in the respective client account as another dimension.

8. The method as defined in claim 1, wherein the time-varying interest rate is determined using a plurality of tiering tables based at least in part on the length of time the funds are held and the balance in the respective client account.

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

transferring or having transferred, using one or more computers and one or more electronic networks, funds based at least in part on the allocating step.

10. A method, comprising:

accessing, using one or more computers, one or more 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 recipient banking institutions participating in a program, wherein funds from client accounts of a plurality of clients are held with funds of other client accounts in the plurality of aggregated deposit accounts held in the plurality of banking institutions 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, wherein there is no penalty for withdrawal of funds,

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

(1) time data on when a deposit was received for deposit into one or more of the interest-bearing aggregated deposit accounts held in one or more of the recipient banking institutions and/or how long the deposit has been held in the program,

(2) a predetermined interest rate for the deposit that is higher than a market rate,

(3) an amount of the deposit, and

(4) a predetermined time period;

obtaining, using the one or more computers, an order into the system from a source institution that is one of the recipient banking institutions participating in the program, to distribute an amount of deposit funds associated with the respective predetermined interest rate and the respective predetermined time period to one or more other recipient banking institutions participating in the program, where that source institution has agreed to pay an amount equivalent to interest on a matching amount of funds of at least the predetermined interest rate;

allocating as non-term funds for deposit, using the one or more computers, the amount of the deposit funds as one or more tranches of the deposit funds from the source institution to one or more of the recipient banking institutions to one or more of the aggregated deposit accounts held therein, wherein the interest rate applied by one or more of the recipient banking institutions for funds allocated of the deposit is different from the predetermined interest rate;

allocating, using the one or more computers, at least the matching amount of non-term funds to the source institution that has agreed to pay the amount equivalent interest on the matching amount of non-term funds of at least the predetermined interest rate;

determining, using the one or more computers and the one or more databases, whether the deposit funds sourced as non-term funds to the one or more of the aggregated deposit accounts were maintained in the one or more of the recipient banking institutions for the predetermined time period;

calculating or having calculated, using the one or more computers, when the deposit funds of the respective client account allocated as non-term funds have been maintained in the one or more of the recipient banking institutions receiving the allocation for the predetermined time period, based at least in part on the balance of the deposit funds and the time data for the respective client account from the one or more databases, a lump sum amount that when added to interest calculated at the different interest rate is an interest sum that results in an amount calculated at the predetermined interest rate, and allocating this interest sum to the respective client account;

calculating or having calculated, using the one or more computers, when the deposit funds of the respective client account allocated as non-term funds have not been maintained in the one or more of the recipient banking institutions receiving the allocation for the predetermined time period, based at least in part on the balance of the deposit funds and the time data for the respective client account from the one or more databases, an amount calculated at the different interest rate, and allocating this interest sum to the respective client account; and

updating, using the one or more computers, the one or more databases to reflect the added interest.

11. The method as defined in claim 10, further comprising

transferring or having transferred, using the one or more computers and one or more electronic networks, funds based at least in part on one or more of the allocating steps.

12. The method as defined in claim 10, wherein the first recited allocating step further comprises selecting one or more of the recipient banking institutions for the first allocation based at least in part on an amount of funds the respective recipient banking institution has deposited for management under the program and is held in one or more other of the recipient banking institutions participating in the program.

13. The method as defined in claim 10, wherein the funds of the client account to be deposited or to be withdrawn are time deposit funds.