Deposit Solutions

Deposit Solutions

Reich & Tang Deposit Solutions

Reich & Tang is experienced in solving banks’ deposit needs through its funding programs. With billions of dollars in total deposits sourced for our clients, Reich and Tang is one of the most relied upon and flexible partners for deposit funding solutions. Community banks, mid-sized banks, and some of the largest banks in the world look to Reich & Tang to achieve their funding goals with our easy-to-implement, low-cost solutions that help to diversify liquidity and counterparty risk. We help banks accomplish their goals primarily through two very unique solutions; Reich & Tang Insured Deposits and Demand Deposit MarketplaceSM.

Reich & Tang Insured Deposits

Reich & Tang Insured Deposits is a deposit capture program that enables banks to grow and diversify their deposit bases. It is a program administered by Reich & Tang and sponsored by broker-dealers, clearing firms, and registered investment advisors, which enables these sponsors to offer their end clients expanded levels of FDIC insurance. The key to offering expanded FDIC insurance through one account is contingent upon the number of deposit-taking banks that participate in the program.

Reich & Tang has hundreds of relationships with banks across the country—community banks up through the largest banks in the world. Through agreements with broker-dealers and clearing firms, Reich & Tang Insured Deposits pools investors’ cash and sweeps deposits into accounts established with these program banks. The deposits are stable, non-interest-sensitive balances that require no service transaction support by your bank.

How does the Program Work at the Bank Level?

  • Reich & Tang, acting on behalf of the broker-dealer, enters into agreements with FDIC-insured banks to source deposits from the broker-dealers’ retail clients.
  • Reich & Tang will arrange agreements with several banks for each broker-dealer or clearing firm’s individual programs.
  • Reich & Tang interfaces with the broker-dealer on a daily basis to track cash balance changes at the individual client account level.
  • Reich & Tang assigns the cash balance of specific clients at the broker-dealer to specific FDIC-insured banks in increments of less than $250,000—ensuring that an individual investor does not exceed the maximum allowable FDIC insurance per bank.

① Cash balances from sponsor brokerage accounts are swept daily into the ② Reich & Tang Insured Deposits program, where, ③ utilizing its innovative modeling technology, deposits are allocated among one or more program banks. ④ No one bank receives more than $250,000 to ensure that their cash is fully protected at all times. Each clients’ cash balance, whether savings or temporary liquidity pending investment opportunities, is accessible at any time and is FDIC insured up to their total cash balances or the program maximum, whichever is less.

Reich & Tang Insured Deposit Process

How Your Bank Benefits


  • Ability to receive a stable source of funds from a diversified set of retail customers
  • Immediate fill orders up to $100 million; larger orders can take slightly longer
  • Enables banks to raise funds without impacting rates paid in local markets
  • Banks do not need to post any collateral as they do with federal home loan advances
  • Banks can tailor the amount of deposits it takes for specific programs

Cost Savings

  • Equal or lower net costs than Federal Home Loan Bank advances, retail CDs, and brokered CDs or other borrowed funds
  • Deposits are generally the least expensive source of deposits for most banks


  • Additional and significant balance sheet management tool
  • Operationally efficient program with a single point of contact for daily settlement
  • Creates or supplements your contingency funding plan

Demand Deposit MarketplaceSM

Strategic planning around liquidity management, deposit sourcing, and risk management have emerged as the most pressing challenges bankers face in this new era of banking. Having a plan in place to access liquidity and diversify funding sources can significantly reduce your bank’s risk, improve operational efficiency, and satisfy regulatory requirements.

Demand Deposit MarketplaceSM (DDM) is an efficient program to diversify banks’ deposit sourcing needs, provide immediate access to liquidity, and help support long-term risk management strategies. DDM was designed specifically to help community banks better compete in a changing environment and enable them to quickly and efficiently respond to new regulatory mandates and guidelines.

Deposit Sourcing

DDM “Receive” Banks, banks that wish to receive deposits, enjoy a low-cost deposit sourcing solution with the flexibility that can be turned on or off when necessary. DDM seamlessly pairs the needs of banks seeking to offload excess deposits with banks seeking an efficient means to shore up their balance sheets to satisfy growing loan demand.

Liquidity and Risk Management

Community banks of all sizes have a renewed focus on their risk management function and on establishing sources of liquidity in the event of a liquidity crisis. DDM Receive Banks are in an ideal position to comply with regulatory mandates, such as establishing or supplementing their Contingency Funding Plans, diversifying counterparty risk, and mitigating liability concentration risk.

Regardless of your size, Reich & Tang has the proven deposit solutions that are right for your bank. We are certain that our programs are the most flexible, low-cost, and easy to implement solutions to address your bank’s funding and liquidity needs.