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Allocation Process

Overview

Under the DDM Program, Customer Funds, including both principal and earned interest, are allocated to Receiving Institutions each business day. Customer Funds are allocated according to an allocation algorithm determined by R&T and are distributed among eligible Receiving Institutions, excluding any institutions a customer has opted out of.

The Allocation Process is designed to provide customers with access to expanded FDIC insurance coverage by distributing deposits across Receiving Institutions. This process also helps ensure that the total amount allocated to any one Receiving Institution does not exceed the applicable Standard Maximum Deposit Insurance Amount (SMDIA) for a Customer Identifier, except where otherwise permitted under program rules.

The Allocation Process takes into consideration various program factors and requirements as described in the DDM Program Customer T&Cs.

How the Allocation Process Works

At a high level, the allocation process follows these steps:

  1. Deposits are submitted to the DDM Program.
  2. R&T evaluates the deposits using the program's allocation process.
  3. Customer Funds are distributed to eligible Receiving Institutions.
  4. Deposit placement is continuously managed as balances and account activity change.

What's Next

  • Explore Receiving Institution Opt-Outs to learn how institution exclusions affect the pool of Receiving Institutions available for deposit placement.

  • Review the DDM Cut-Off Times to understand the daily processing deadlines that govern deposit allocation and other DDM activities.

Updated 18 days ago

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R&T Deposit Networks, LLC, R&T Deposit Marketplace, LLC, R&T Deposit Solutions, LLC and R&T Deposit Programs, LLC (each d/b/a R&T Deposit Solutions), each a Delaware limited liability company, (together, “R&T”) provide administrative, recordkeeping, and/or other services to banks, credit unions, trust companies, wealth management firms, broker-dealers and other institutions with respect to deposit placement and sweep programs, including the Demand Deposit Marketplace® (DDM®), Certificate of Deposit Marketplace Exchange℠ (CDMX℠) and R&T Insured Deposits℠ (RTID®) programs, as well as other services. An affiliate of R&T, Stable Custody Group II LLC (“Stable”), acts as agent of participating sending institutions under the DDM and CDMX programs. R&T and Stable, together, “we”, “us” or “our”. All of our services are provided subject to the terms and conditions of the written agreements and/or agency appointments between us and our clients with respect to those services, and we provide no representations or warranties, express or implied, except as expressly set forth in those written agreements and/or appointments. Click here for our legal and other disclosures. We are not an FDIC or NCUA-insured institution. FDIC insurance only covers the failure of an FDIC-insured institution. NCUA insurance only covers the failure of an NCUA-insured institution. Certain conditions must be satisfied for FDIC and NCUA pass-through deposit insurance coverage to apply. Click here for a list of the FDIC and NCUA-insured institutions with which R&T has a direct or indirect business relationship for the placement of deposits under the DDM, CDMX, and RTID programs, and into which a participating institution may place deposits (subject to the terms of those programs and any opt-outs by the participating institution and/or its customers). While the DDM, CDMX, and RTID programs provide access to an expanded level of FDIC or NCUA deposit insurance coverage on funds placed into the programs (subject to program terms and applicable laws, regulations and guidance, including pass-through insurance coverage requirements), the DDM, CDMX and RTID programs, themselves, as well as our other service offerings, are not insured or guaranteed by the FDIC or NCUA, are not deposits, and may lose value. We are not an affiliate of an FDIC or NCUA-insured institution, we are not an office, division, or sub-division of the FDIC or NCUA, and we are not associated with the FDIC or NCUA or office, division, or sub-division thereof. The primary objective of the DDM, CDMX, and RTID programs is to provide customers with convenient access to expanded deposit insurance coverage on their funds (and not for investment enhancements, higher rates of returns or profits). R&T®, Reich & Tang®, Demand Deposit Marketplace®, DDM®, DepositView®, CDMX®, and RTID® are registered marks, and R&T Direct℠ is a pending mark of R&T Deposit Networks, LLC. of R&T Deposit Networks, LLC. IDEA℠, Certificate of Deposit Marketplace Exchange℠, R&T Insured Deposits℠ are unregistered service marks of R&T Deposit Networks, LLC.

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