Deposit sweeps
Cross River partners with IntraFi to offer you deposit sweeps. IntraFi connects Cross River to a large network of banks and also handles the complexity of managing deposit placements across the network of institutions. The result is our ability to offer you a much higher insurance limit of up to $170 million per tax ID, giving your customers protection for their accounts.
- You want to offer your customers an insurance limit of up to $170 million per tax ID.
- Your customers deposit accounts have cash balances of over $250,000.
To implement deposit sweeps, you need to:
- Have a deposit product
- In addition to your regular configuration, be sure to include IntraFi Sweeps
- Sign the service agreement:
- For a new partner, ensure it covers deposit products.
- For an existing partner, covers deposit IntraFi Sweeps.
- Complete sandbox certification: Ensure all testing is validated and certified.
- Obtain production access: Perform production testing to finalize integration.
- Enable deposit IntraFi Sweeps capabilities: Activate services for your account product on Cross River.
Before you offer IntraFi Sweeps to your customers, they must accept the IntraFi deposit placement agreement.
Once you've added IntraFi Sweeps to your deposit product, our APIs let you offer your customers the ability to:
- View deposit placements and balances. See the breakdown of where funds are and how much is at each institution.
- Settlement happens every day. Cross River sends records to IntraFi of what needs to be swept or returned and IntraFi accepts those records.
- At the end of day, either Cross River sends a settlement wire of funds to IntraFi or Intrafi return funds to Cross River.
- Opt out of a particular bank. We recommend customers do this if they already have funds at a specific institution.
In our example, you use Cross River as your partner bank. You offer a deposit product enabled for IntraFi sweeps. The flow looks like this:
- Your customer opens an account and deposits $750K.
- This $750K now resides in a Cross River Account.
- Since this deposit is enabled for sweeps, anything in excess of $250K will get picked up for sweeps through the IntraFi network.
- Cross River wired $500K to IntraFi.
- IntraFi handles the relationship with a network of banks. IntraFi sweeps $250K into two FDIC compliant banks.
- Your customer is insured for the entire available balance of $750K.
- $250K remains at Cross River, but the available balance remains at $750K.
- Your customer can withdraw from their full balance at any time.
Once we enable the deposit sweeps add-on for your deposit product, any of your customer accounts with funds in excess of the FDIC insurance limit are picked up for sweeps and funds will be swept to the IntraFi network.
- Account balance always visible: The total account balance remains visible as if all the funds are in a single account.
- Interest rate stability: The interest rate on the various accounts remains same as offered in your Cross River deposit account product.
- Withdraw funds at any time: The available balance includes the swept balance and your customer can withdraw funds at anytime.