Money fund banking system with multiple banks and/or rates

• US 7,716,131 B2
• Filed: 10/31/2007
• Issued: 05/11/2010
• 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): Felten; Daniel S
• Application Number:
  US11/932,762
• Publication Number:
  US 20080120228A1
• Time in Patent Office: 923 Days
• Field of Search: 705/40, 235/379
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• 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 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Providing interest to clients'"'"' deposited funds without limitation on the number of demand withdrawals from deposit accounts is accomplished by an administration system that keeps all of the records for the clients'"'"' deposits and withdrawals, calculates the total of the deposits and withdrawals for all clients, and uses the calculation to determine whether funds are deposited to or withdrawn from one or more deposit accounts in which all clients'"'"' deposit funds are kept. Clients can make unlimited withdrawals, such as by check, credit card, debit card, or electronic transfer, through the administrator. By placing the administrator as the holder of the deposit account(s), exemptions to the limitation on earning interest in demand accounts is facilitated; additionally, dispersing the deposit account funds among multiple banks allows the client to obtain FDIC insurance for all of the deposited funds, which may amount to insurance in excess of the statutory maximum allowed (presently $100,000.00).

Claims

1. A method for managing a plurality of respective client transaction accounts associated with a plurality of respective clients for a plurality of transactions, said method comprising:

(a) accessing, by one or more computers, a database maintained on one or more computer readable media for carrying out one or more of the following steps, wherein the database comprises information for each client transaction account, wherein client transaction account funds for the client transaction accounts are aggregated with funds of other client transaction accounts in one or more of a plurality of FDIC-insured and interest-bearing aggregated deposit accounts held at one or more of a plurality of banking institutions, and wherein the information for each of the client transaction accounts includes information on each client'"'"'s funds held in said insured and interest-bearing aggregated deposit accounts, with one or more of the aggregated deposit accounts held in each different one of the plurality of banking institutions;

(b) administering clients'"'"' deposits/transfers to and withdrawals/transfers from each of said client transaction accounts using the one or more computers, said administering step comprising processing, by one or more computers, transaction data associated with each of more than six (6) withdrawals/transfers by check and/or debit card within a month from each of a plurality of said client transaction accounts, with the transaction data comprising a respective amount for each respective withdrawal/transfer;

(c) determining, by one or more computers, on a regular basis one or more net transactions, with each net transaction comprising a sum of said client deposits/transfers to and/or withdrawals/transfers from a plurality of said client transaction accounts of a plurality of clients;

(d) determining, by one or more computers, based at least in part on one or more of said net transactions, whether to deposit/transfer funds to or withdraw/transfer funds from said one or more FDIC-insured and interest-bearing aggregated deposit accounts, said determining step comprising;

(i) determining by the one or more computers whether each client'"'"'s funds held in one of the banking institutions in the one or more FDIC-insured interest bearing aggregated deposit accounts held therein is more than a specified amount; and

(ii) generating data by the one or more computers for distribution of any amounts over said specified amount into at least one other FDIC-insured interest bearing aggregated deposit account at at least one other of the banking institutions in which the total of said client'"'"'s funds therein will not exceed the specified amount;

(e) processing needed deposits/transfers to, or needed withdrawals/transfers from said one or more FDIC-insured and interest-bearing aggregated deposit accounts based on said determining from said at least one aggregated net transaction step, so that more than six (6) withdrawals/transfers are made during a month from each of a plurality of said FDIC-insured and interest-bearing aggregated deposit accounts; and

(f) updating by computer the database with each client'"'"'s deposits/transfers to and withdrawals/transfers from said each client'"'"'s respective transaction account.

2. The method of claim 1, wherein more than six (6) withdrawals/transfers are made during a month from each of two of said FDIC-insured interest-bearing aggregated deposit accounts.

3. The method of claim 1, further comprising:

receiving from respective one or more computers associated with respective banking institutions from the plurality of the banking institutions interest earned data on funds of the clients held in the FDIC-insured interest-bearing aggregated deposit accounts held therein;

processing the interest earned data to cause distribution of interest earned from said FDIC-insured interest-bearing aggregated deposit accounts to said transaction accounts; and

updating the database based on interest paid to and client'"'"'s deposits/transfers to and withdrawals/transfers from each of their respective transaction accounts.

4. The method of claim 1, wherein one or more of said withdrawals/transfers from at least one of said one or more FDIC-insured interest-bearing aggregated deposit accounts are requested in person.

5. The method of claim 1, wherein one or more of said withdrawals/transfers from at least one of said one or more FDIC-insured interest-bearing aggregated deposit accounts are requested by mail.

6. The method of claim 1, wherein one or more of said withdrawals/transfers from at least one of said one or more FDIC-insured interest-bearing aggregated deposit accounts are requested by messenger.

7. The method of claim 1, wherein one or more of said withdrawals/transfers from at least one of said one or more FDIC-insured interest-bearing aggregated deposit accounts are requested by telephone and distributed by mail.

8. The method of claim 1, wherein one or more of said withdrawals/transfers from at least one of said one or more FDIC-insured interest-bearing aggregated deposit accounts are requested by automated teller machine.

9. The method of claim 1, wherein the client transaction account funds for at least one client are held in FDIC-insured interest-bearing aggregated deposit accounts among a fixed plurality of banking institutions so that FDIC insurance coverage greater than the maximum FDIC insurance coverage available for deposits of a client held in a single banking institution is obtained for that client.

10. The method of claim 1, further comprising:

determining a client'"'"'s preferences for banking institutions to hold its funds; and

causing distribution of any amounts over said specified amount by depositing/transferring to or withdrawing/transferring from said FDIC-insured interest-bearing aggregated deposit accounts in dependence on the client preferences for banking institutions.

11. The method of claim 1, wherein clients'"'"' funds are deposited and/or transferred to said client demand accounts by at least one method selected from the group consisting of check or draft, debit card, wire or electronic transfer, ACH credit, third party credits, and a sweep from another account.

12. The method of claim 1, where the processing is of transaction data comprising six (6) or more withdrawals/transfers by check, within a month from each of a plurality of said client transaction accounts.

13. The method of claim 1, where the processing is of transaction data comprising six (6) or more withdrawals/transfers by debit card, within a month from each of a plurality of said client transaction accounts.

14. The method of claim 1, wherein one or more of the FDIC-insured and interest-bearing aggregated deposit accounts are aggregated money market deposit accounts.