Demand Deposit Marketplace℠

A Liquid FDIC Insured Alternative to Money Market
Mutual Funds

Trust management, wealth management, and RIA's are constantly seeking well-conceived investments in all asset classes to best grow and protect their clients’ portfolios. With money market mutual fund reform affecting cash management programs for investment professionals and investors, many wealth managers are seeking a simplified, proven, and liquid alternative to money funds.

Demand Deposit Marketplace℠ (DDM)

The Demand Deposit Marketplace℠ (DDM) program is one of the most flexible multi-million dollar FDIC insured cash management solutions available to wealth managers. DDM provides investors with millions of dollars in FDIC insurance coverage, daily liquidity, and a highly attractive yield. This daily solution is the ideal cash option for managers seeking safety for their clients with the potential for competitive yields without increasing overall portfolio risk.

Why DDM℠ versus Money Funds?

  • DDM provides investors with high levels of FDIC insurance that money market mutual funds, U.S. Treasuries, and traditional bank DDA, MMDA and CDs do not offer
  • Current yield advantage to money market mutual funds with the convenience of daily liquidity
  • FDIC insurance eliminates the risks associated with money market funds
  • DDM provides banks with a reliable, stable funding source that can be placed on their balance sheets, which is not possible with money funds

Safety

  • Deposits up to the program maximum are guaranteed by the FDIC

Daily liquidity

  • Cash is available daily; not locked up in laddered CD portfolios
  • Funds are always accessible with no penalties or restrictions Yield

Yield

  • Highly competitive yields compared to current money market mutual funds and U.S. Treasury rates

Attractive, responsible FDIC insured cash option for high value accounts.

  • An insured, liquid cash investment outside the scope of money market mutual fund reform
  • Attractive yield potential to improve overall portfolio returns
  • FDIC insured deposits eliminate the risk associated with money market mutual funds
  • Diversification of deposits among several FDIC insured banks reduces liquidity exposure

Trust department clients collectively maintain large cash balances that are typically invested in money market mutual funds. Through DDM, these cash balances can quickly become a reliable funding source for your bank, which is not possible with money funds.

  • Utilization/monetization of investors’ cash holdings as a reliable, stable funding source for the bank, which are treated more attractively than wholesale funding
  • Reliable access to deposits/funding on a daily basis

For non-integrated/omnibus accounts, click here to learn about the Insured Deposit Equal Allocation (IDEA℠) Account