DDM Deposit Relationships
DDM is the only deposit sweep program available that enables you to choose from a variety of deposit relationships that meets the needs of your bank on any given day.
Have too many deposits? Many banks have excess liquidity that is likely causing a drag on earnings. If you are looking to take excess deposits off your balance sheet without having to take any deposits back on, becoming a "Send Only" bank may be just the right solution. In addition, your customers will benefit from the ability to receive expanded levels of FDIC insurance.
Have too few deposits? The good news is that there have been some hints of increasing loan demand across many regions of the United States. If you are looking to take on more deposits to fund your balance sheet, becoming a Receive Only DDM bank is an ideal solution. And depending on your total funding needs, becoming a "Receive Only" bank is likely the quickest and most efficient means of establishing or supplementing a contingency funding plan.
Have just the right amount of deposits? If you are a bank in perfect deposit harmony (without the need to send or receive more deposits), but would like to improve your product lineup by offering customers expanded levels of FDIC insurance, becoming a "Reciprocal" bank is most certainly the right solution for you.
The concept is simple; for as many customer deposits you wish to send out of your bank so that they may receive expanded levels of FDIC insurance, DDM will send the exact amount back to you. While, in concept, deposits move out and move back into your bank, the “net zero” transaction is a simple book entry and deposits never physically leave or come into your bank.
Being a "Reciprocal Plus" bank means you have the ability to send/receive deposits just as you would in a pure reciprocal relationship, except you choose how much you would like to receive or not receive back—on any given day. For example, if you would like to send $1 million into DDM and receive $2 million back in deposits, the DDM reciprocal plus relationship can accommodate it for you. In fact, our program is so flexible, you can choose any reciprocal deposit ratio that meets your bank's needs. For example: