Systems and methods for money fund banking with flexible interest allocation

• US 8,019,667 B1
• Filed: 01/07/2010
• Issued: 09/13/2011
• 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): Trammell; James P
• Assistant Examiner(s): AMELUNXEN, BARBARA J
• Application Number:
  US12/684,071
• Time in Patent Office: 614 Days
• Field of Search: 705/4, 705/35, 705/36.R, 705/42
• 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

This invention provides system and methods for managing accounts of clients at customer financial entities so that deposits of up to $100,000 or greater are insured, so that interest income earned on a portion of all of the account balances may be flexibly allocated according to customer instructions, and so that withdrawals are not limited. These objects are satisfied by holding client funds at interest-earning money market deposit accounts at one or more banks of savings institutions. More particularly, this invention provides methods for receiving client transaction information, determining a net transfer of funds into or out of each client account from transaction information, causing transfer of funds from the insured, interest-bearing deposit accounts to match the net transfer of funds into or out of each client account, and allocating interest earned by the deposit accounts to clients according to customer instructions. This invention also provides systems and software products implementing these methods.

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;

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

(1) a respective balance of funds in the respective client account; and

(2) 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) allocating, by the one or more computers, the client funds to one or more of the one or more banks to be held in one or more of the one or more of the aggregated deposit accounts;

(C) determining an amount of funds to be transferred to or from one or more of the one or more of the banks;

(D) updating in the one or more electronic databases, by the one or more computers, the client account information for each of more than one of the client accounts, with update data for each of these client accounts comprising the respective balance of funds held in the one or more Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing aggregated deposit accounts for the respective client account based on results of the allocating step;

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

(F) calculating, by the one or more computers, or having calculated by 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 the one or more 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;

(G) calculating, by the one or more computers, or having calculated by 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 the one or more 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;

(H) determining, by the one or more computers, interest earned on funds held during the period in each of the one or more aggregated deposit accounts in the program; and

(I) updating or having updated the one or more electronic databases, by the one or more computers, to include the respective interest for each of more than one of the respective client accounts based on the respective interest rate determined for 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 one or more criteria for the respective client account comprise the updated balance of funds for the respective client account in relation to a set of balance ranges.

3. The method as defined in claim 2, wherein there are a plurality of banks in the program, each of the banks with at least one FDIC-insured and interest-bearing aggregated deposit account, and wherein the one or more electronic databases maintain client account information comprising at least one client'"'"'s funds held in one or more aggregated deposit accounts in a plurality of said banks in the program.

4. The method as defined in claim 2, wherein the FDIC-insured and interest-bearing deposit account held at least one of the one or more of the banks in the program is an aggregated money market deposit account.

5. The method as defined in claim 1, wherein the one or more criteria for the respective client account comprises a relationship status.

6. The method as defined in claim 1, wherein the one or more criteria for the respective client account comprise at least one selected from the group of agent-managed client account balances at the banks holding funds of the client accounts, a total of a client'"'"'s fund balances at a bank or other financial entity, a date the client account was opened, a duration the client has transacted business with a bank or other financial entity holding the client account, an address of the client account, and policies and promotions of a bank or other financial entity holding the client account.

7. The method as defined in claim 1, wherein there are a plurality of banks in the program, each of the banks with at least one FDIC-insured and interest-bearing aggregated deposit account, and wherein the one or more electronic databases maintain client account information comprising at least one client'"'"'s funds held in one or more aggregated deposit accounts in a plurality of said banks in the program.

8. The method as defined in claim 1, wherein the FDIC-insured and interest-bearing deposit account held in at least one of the one or more of the banks in the program is an aggregated money market deposit account, and

further comprising generating or have generated instructions to withdraw funds from the aggregated money market deposit account in the at least one of the one or more banks with the aggregated money market deposit account through an aggregated demand deposit account.

9. The method as defined in claim 1, further comprising computer-readable instructions for determining the respective interest rate based on the respective balance of funds electronically associated with the client account in the one or more databases.

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

adjusting, by the one or more computers, one or more of the interest rates based on time.

11. The method as defined in claim 1, wherein the one or more criteria for the respective client account comprise the updated balance of funds for the respective client account in relation to a set of balance ranges, and

further comprising:

adjusting, by the one or more computers, at least one selected from the group of interest rate, a number of balance ranges in the set, and time period for an interest rate.

12. The method as defined in claim 1, wherein the one or more criteria for the respective client account comprise the updated balance of funds for the respective client account in relation to a set of balance ranges, and

further comprising:

adjusting, by the one or more computers, an interest rate based on time.

13. The method as defined in claim 1, wherein the one or more criteria for the respective client account comprise the updated balance of funds for the respective client account in relation to a set of balance ranges, and

further comprising:

adjusting, by the one or more computers, all of the interest rates based on time.

14. The method as defined in claim 1,

further comprising:

adjusting, by the one or more computers, a duration for at least one of the interest rates.

15. The method as defined in claim 1,

further comprising:

providing an electronic flag to indicate a duration of an interest rate.

16. The method as defined in claim 1,

further comprising:

testing, by the one or more computers, for a flag to determine if an interest rate should be used.

17. The method as defined in claim 1,

further comprising:

determining one of the interest rates based on a date range.

18. The method as defined in claim 1,

further comprising:

determining, by the one or more computers, one of the interest rates based on an additive or multiplicative amount to be applied to a base interest rate.

19. The method as defined in claim 1,

further comprising:

providing an additional one or more interest rates to be selected based on time information.

20. The method as defined in claim 1, wherein the one or more criteria for the respective client account comprise time.

21. A computer system, comprising:

one or more computers comprising memory wherein the memory stores computer-readable instructions 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;

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

(1) a respective balance of funds in the respective client account; and

(2) a respective balance of funds from the respective client account held in each of the one or more banks holding funds of the respective client account in one or more insured and interest-bearing aggregated deposit accounts therein; and

(B) allocating, by the one or more computers, the client funds to one or more of the one or more banks to be held in one or more of the one or more of the aggregated deposit accounts;

(C) determining an amount of funds to be transferred to or from one or more of the one or more of the banks;

(D) updating in the one or more electronic databases, by the one or more computers, the client account information for each of more than one of the client accounts, with update data for each of these client accounts comprising the respective balance of funds held in the one or more Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing aggregated deposit accounts for the respective client account based on results of the allocating step;

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

(F) calculating, by the one or more computers, or having calculated by 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 the one or more 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;

(G) calculating, by the one or more computers, or having calculated by 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 the one or more 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;

(H) determining, by the one or more computers, interest earned on funds held during the period in each of the one or more aggregated deposit accounts in the program; and

(I) updating or having updated the one or more electronic databases, by the one or more computers, to include the respective interest for each of more than one of the respective client accounts based on the respective interest rate determined for the funds of the respective client account held in the one or more aggregated deposit accounts.

22. The system as defined in claim 21, wherein the one or more criteria for the respective client account comprise the updated balance of funds for the respective client account in relation to a set of balance ranges.

23. The system as defined in claim 22, wherein there are a plurality of banks in the program, each of the banks with at least one FDIC-insured and interest-bearing aggregated deposit account, and wherein the one or more electronic databases maintain client account information comprising at least one client'"'"'s funds held in one or more aggregated deposit accounts in a plurality of said banks in the program.

24. The system as defined in claim 22, wherein the FDIC-insured and interest-bearing deposit account held at least one of the one or more of the banks in the program is an aggregated money market deposit account.

25. The system as defined in claim 21, wherein the one or more criteria for the respective client account comprise a relationship status.

26. The system as defined in claim 21, wherein the one or more criteria for the respective client account comprise at least one selected from the group of agent-managed client account balances at banks holding funds of the client accounts, a total of a client'"'"'s fund balances at a bank or other financial entity, a date the client account was opened, a duration the client has transacted business with a bank or other financial entity holding the client account, an address of the client account, and policies and promotions of a bank or other financial entity holding the client account.

27. The system as defined in claim 21, wherein there are a plurality of banks in the program, each of the banks with at least one FDIC-insured and interest-bearing aggregated deposit account, and wherein the one or more electronic databases maintain client account information comprising at least one client'"'"'s funds held in one or more aggregated deposit accounts in a plurality of said banks in the program.

28. The system as defined in claim 21, wherein the FDIC-insured and interest-bearing deposit account held in at least one of the one or more of the banks in the program is an aggregated money market deposit account, and

further comprising computer-readable instructions configured for generating or have generated instructions to withdraw funds from the aggregated money market deposit account in the at least one of the one or more banks with the aggregated money market deposit account through an aggregated demand deposit account.

29. The system as defined in claim 21, further comprising computer-readable instructions for determining the respective interest rate based on the respective balance of funds electronically associated with the client account in the one or more databases.

30. The system as defined in claim 21, further comprising:

adjusting, by the one or more computers, one or more of the interest rates based on time.

31. The system as defined in claim 21, wherein the one or more criteria for the respective client account comprise the updated balance of funds for the respective client account in relation to a set of balance ranges, and

further comprising:

computer-readable instructions configured for adjusting at least one selected from the group of interest rate, a number of balance ranges in the set, and time period for an interest rate.

32. The system as defined in claim 21, wherein the one or more criteria for the respective client account comprise the updated balance of funds for the respective client account in relation to a set of balance ranges, and

further comprising:

computer-readable instructions configured for adjusting an interest rate based on time.

33. The system as defined in claim 21, wherein the one or more criteria for the respective client account comprise the updated balance of funds for the respective client account in relation to a set of balance ranges, and

further comprising:

computer-readable instructions configured for adjusting all of the interest rates based on time.

34. The system as defined in claim 21,

further comprising:

computer-readable instructions configured for adjusting a duration for at least one of the interest rates.

35. The system as defined in claim 21,

further comprising:

computer-readable instructions configured for providing an electronic flag to indicate a duration of an interest rate.

36. The system as defined in claim 21,

further comprising:

computer-readable instructions configured for testing for a flag to determine if an interest rate should be used.

37. The system as defined in claim 21,

further comprising:

computer-readable instructions configured for determining one of the interest rates based on a date range.

38. The system as defined in claim 21,

further comprising:

computer-readable instructions configured for determining one of the interest rates based on an additive or multiplicative amount to be applied to a base interest rate.

39. The system as defined in claim 21,

further comprising:

computer-readable instructions configured for providing an additional one or more interest rates to be selected based on time information.

40. The system as defined in claim 21, wherein the one or more criteria for the respective client account comprise time.

41. A method, comprising:

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

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

(1) a respective balance of funds in the respective client account; and

(2) 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) determining or having determined or accessing, by the one or more computers, the respective balance for each of more than one of the client accounts;

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

(D) calculating, by the one or more computers, or having calculated by 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 the one or more 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;

(E) calculating, by the one or more computers, or having calculated by 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 the one or more 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;

(F) determining, by the one or more computers, interest earned on funds held during the period in each of the one or more aggregated deposit accounts in the program; and

(G) updating or having updated the one or more electronic databases, by the one or more computers, to include the respective interest for each of more than one of the respective client accounts based on the respective interest rate determined for the funds of the respective client account held in the one or more aggregated deposit accounts.

42. The method as defined in claim 41, wherein there are a plurality of banks in the program, each of the banks with at least one FDIC-insured and interest-bearing aggregated deposit account, and wherein the one or more electronic databases maintain client account information comprising at least one client'"'"'s funds held in one or more aggregated deposit accounts in a plurality of said banks in the program.

43. A computer system, comprising:

one or more computers comprising memory wherein the memory stores computer-readable instructions 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;

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

(1) a respective balance of funds in the respective client account; and

(2) a respective balance of funds from the respective client account held in each of the one or more banks holding funds of the respective client account in one or more insured and interest-bearing aggregated deposit accounts therein; and

(B) determining or having determined or accessing, by the one or more computers, the respective balance for each of more than one of the client accounts;

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

(D) calculating, by the one or more computers, or having calculated by 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 the one or more 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;

(E) calculating, by the one or more computers, or having calculated by 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 the one or more 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;

(F) determining, by the one or more computers, interest earned on funds held during the period in each of the one or more aggregated deposit accounts in the program; and

(G) updating or having updated the one or more electronic databases, by the one or more computers, to include the respective interest for each of more than one of the respective client accounts based on the respective interest rate determined for the funds of the respective client account held in the one or more aggregated deposit accounts.

44. The system as defined in claim 43, wherein there are a plurality of banks in the program, each of the banks with at least one FDIC-insured and interest-bearing aggregated deposit account, and wherein the one or more electronic databases maintain client account information comprising at least one client'"'"'s funds held in one or more aggregated deposit accounts in a plurality of said banks in the program.