Benefits of Extending FDIC Limits with Marketplace Banking™

Person holding a stack of cash - ADM can extend FDIC insurance limits for your business

Almost all businesses need to keep some level of cash on hand to manage their day-to-day activities. However, having enough liquid cash available to handle an emergency can be the difference in survival and failure for a business, especially during times of economic stress.

Businesses have been given a strong reminder of this point as we have been weathering the COVID-19 pandemic. Due to this, many businesses are filing bankruptcy or closing their doors for good, due to a lack of reserve cash needed to meet their obligations. Others are re-evaluating their reserve cash positions in hopes that they can better weather an economic storm the next time around.

By maintaining an appropriate cash reserve, businesses can have confidence that they will endure the next economic downturn. But keeping a large pile of cash on hand comes with its own complications.

Large sums of reserve cash can create extra risk for businesses.

Once a business decides to increase its level of reserve cash, there are several issues that must be considered. The most important of those issues is protecting that cash. A business can keep up to $250,000 in cash protected in a FDIC insured bank account. But what if your business has more than this limit?

To get around the $250k limit, businesses have options. They could open accounts at as many different banks as they would need to achieve the FDIC coverage. After all, the FDIC limit is restricted to $250k per owner per account ownership category, per insured bank. So, if the business has $5 million in reserve cash, they would need relationships with around 20 banks to achieve full FDIC protection.

The business would then need the resources to manage all 20 relationships, along with the work of balancing and reconciling of those accounts. If the business had $50 million in cash, imagine the work that would be involved to achieve FDIC protection for the entire amount.

Fintech has made extended FDIC protection available to all businesses.

In the past decade, the emergence of fintech has led to the disruption of business cash management. Our company, the American Deposit Management Co [ADM], has leveraged our proprietary fintech to revolutionize the process of achieving FDIC / NCUA coverage for virtually unlimited sums of cash.

With a Marketplace Banking™ account by ADM, your business can begin the process of achieving FDIC / NCUA protection for all its cash with a simple application. This account utilizes our proprietary fintech to spread your cash among our network of banks and credit unions who compete for your deposits. So, not only can you achieve protection for all your cash, you get nationally competitive returns.

But the benefits of Marketplace Banking™ by ADM do not stop there. ADM makes the process of achieving 100% FDIC / NCUA coverage very simple. To get started, just complete a simple application. Then an ADM team member will assist you in making your first deposit. After that, you get a single consolidated statement each month, and you can monitor your deposits 24 / 7 using our secure online portal.

Benefits of Extended FDIC Protection with Marketplace Banking™

If your business has achieved FDIC / NCUA protection for all its cash, you can rest assured that it is as safe as possible. Protection from both the FDIC and NCUA are backed by the full faith and credit of the U.S. Government, so there is no stronger protection available for your cash. If your bank fails, no problem. Per the FDIC, “since 1933, no depositor has lost a penny of FDIC-insured funds.”

In addition to that protection, with a Marketplace Banking™ account by ADM, hundreds of financial institutions will be competing for your deposits. So, your business will have access to nationally competitive rates. This means the days of researching rates to find the best place for your cash are over.

Finally, ADM makes managing your reserve cash simple. With a Marketplace Banking™ account, your business won’t need a team of professionals to manage multiple banking relationships. We take that work off your hands. And, when you need your cash fast, ADM can provide next business day liquidity.

Earn More, Risk Less with Marketplace Banking™ by ADM

There are other options available in the marketplace that provide access to extended FDIC coverage, such as CDARS and ICS. But those programs come with important limitations that are not an issue with a Marketplace Banking™ account.

If you need access to extended FDIC / NCUA protection for your business deposits, don’t hesitate to contact a member of our team. Our team is our secret sauce, and we’ll get your business on the road to efficient cash management with access to extended protection and nationally competitive returns.

If you’re looking for more valuable insights on banking, interest rates, and effectively managing your business cash, be sure to check out our Insights page and follow us on LinkedIn, Twitter and Facebook.


*American Deposit Management Co. is not an FDIC/NCUA-insured institution. FDIC/NCUA deposit coverage only protects against the failure of an FDIC/NCUA-insured depository institution.

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