Labor Unions Thrive When They Partner With ADM

Labor unions represented by a worker’s glove grasping a wrench and an American Flag.

Many businesses can accurately predict their cash flow five or even ten years in the future, but labor unions often do not have that luxury. While cash inflows are regular, outflows can be erratic. That often means keeping significant cash on hand.

Cash management can be a challenge in any industry, but it is particularly difficult for labor unions who must balance fiduciary responsibilities with unique liquidity needs. Fortunately, our company – the American Deposit Management Co. [ADM] – has a fintech powered solution that addresses the unique cash management challenges routinely faced by unions.

Labor Unions Often Have Unpredictable Cash Outflows

Labor unions must be poised to respond when member needs arise, and these responses often require significant cash. For this reason, cash reserves must remain accessible.

Cash managers often find it challenging to maintain the appropriate amount of liquidity without sacrificing safety or returns. Fortunately, ADM has a solution to help unions balance these competing needs. Our American Money Market Account™ [AMMA™] provides the perfect balance of liquidity, safety and competitive returns for union cash managers.

Unions Have a Fiduciary Responsibility to Protect and Maximize Member Funds

Labor unions have a fiduciary duty to their members. This means they should act in members’ best interests all the time – including managing cash reserves. To meet this responsibility, leaders should ensure that funds are safe and earning a competitive return.

Unions should secure the ultimate protection for all cash reserves.

While uncommon, bank failures do occur, especially during periods of economic turmoil. Fortunately, the FDIC and NCUA provide the ultimate protection for cash reserves. However, these programs have important limitations unions must overcome.

The FDIC and NCUA are government agencies that insure the principal and accrued interest in accounts at member financial institutions. In the event of financial institution failure, insured funds are backed by the full faith and credit of the U.S. government. However, insurance through these government agencies is capped at $250,000 per ownership category at each insured financial institution. With cash reserve balances for unions often exceeding this limit significantly, this can be a problem.

Fortunately for union leadership, ADM has a robust solution to this issue called Marketplace Banking™. This innovative concept enables our team to spread deposits across our nationwide network of financial institutions using proprietary fintech. With Marketplace Banking™, all a union’s cash reserves can be protected by government insurance in a single account with a single monthly statement and annual 1099-INT.

Unions should seek a competitive return for cash reserves.

In addition to safety, union leaders should seek competitive returns on reserve cash to be responsible custodians of their members’ funds. Interest from cash reserves can provide additional revenue for keeping membership affordable, minimizing the impact of inflation, or providing some cushion in an effective cash flow strategy.

Marketplace Banking™ makes achieving a competitive interest rate simple. The financial institutions in the ADM network compete for deposits, providing our clients access to nationally competitive returns – without the geographic limitations of traditional banking.

Labor Unions Have Unique Cash Needs. ADM Has Customizable Solutions.

Our company offers customizable solutions to help labor unions effectively manage their cash. For funds earmarked for future projects, we can devise a CD ladder. AMMA™ can also accommodate short-term needs. With AMMA™, unions can achieve full FDIC / NCUA protection, nationally competitive returns, and next-day liquidity.

In addition to our fintech-powered deposit management solutions, ADM has a team of experienced cash consultants. Our team supports clients in crafting an effective cash management strategy and choosing investments to meet their needs.

To learn more about how Marketplace Banking™ benefits unions, use the chat feature at the bottom of the screen, give us a call, or reference the following Frequently Asked Questions.

Frequently Asked Questions*

Q: How does it work?

A: The American Deposit Management Co. [ADM], has created a concept called Marketplace Banking™. With Marketplace Banking™ businesses are provided access to unlimited deposit protection. ADM accomplishes this by spreading deposits across the proprietary network of local financial institutions. All businesses need to do is open an American Money Market Account™ [AMMA™] and make a single deposit.

Q: Is ADM a bank?

A: No, ADM is not a bank. ADM works with over 500 banks and credit unions to provide deposit options for our clients. ADM helps link your existing banking relationship to earn higher return on FDIC / NCUA insured Money Market Savings Accounts or CDs.

Q: What type of investments does ADM provide?

A: ADM invests clients’ funds in financial institution products only. All products are FDIC / NCUA insured or collateralized according to all applicable state statutes, which inherits no market risk. ADM does not offer stocks or securities. Investments include:

• Money Market Savings Accounts (AMMA™)
• Certificates of Deposit (CDs)

Q: How safe is my money?

A: Protecting cash reserves is paramount, so it’s important to ensure they are properly secured. FDIC / NCUA insurance provides the highest level of safety for cash because it is backed by the full faith and credit of the United States government. According to the FDIC, “No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933.” This applies to both individual depositors and businesses. The FDIC protects deposits by charging insured institutions a small fee, fractions of a cent on the dollar, and depositing these fees into an insurance fund. In the event of an institution failure, the FDIC uses the assets in this fund to guarantee investors’ savings up to $250,000 per account ownership category at each insured financial institution.

In addition to FDIC / NCUA protection, ADM has implemented an IT Security Policy, GLBA Information Security Program Policy, Business Continuity Plan Program, and Vendor Management Program. Annual reviews of the policies and programs as well as audits by an external auditor are performed to ensure the safety and security of the Company and client information.

Q: How do I access my Monthly Statement and Tax Forms?

A: Clients have access to ADM’s secure online portal to view and download information including current balances and transaction history. In addition, ADM also provides 1099-INT Tax forms and monthly statements, available on the secure online portal, to make Accounting easier for our clients.

Q: What are the minimum balances to have an account with ADM?

A: There is no minimum balance required to work with ADM. However, the average monthly balance for an AMMA™ account, must be greater than $25,000.00 to earn interest.

Q: What other clients does ADM service?

A: ADM seeks to work with public entities like School Districts, Cities, and Counties. In addition, ADM works with Qualified Settlement Funds (QSF), trusts, foundations, non-profit and commercial accounts.

*Funds in an AMMA™ can be deposited with traditional banks or Credit Unions. When funds are deposited at a credit union, NCUA insurance will be available in lieu of FDIC insurance and is functionally equivalent.


*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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