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Promontory Interfinancial Network: Insured Network Deposits Service (IND)

Provider: Promontory Interfinancial Network, LLC

The Insured Network Deposits (IND) service enables financial institutions to access uncollateralized, floating-rate funding in amounts ranging from $25 million to multiple billions of dollars for terms of three to five years or more. The large majority of these deposits can be classified as money market deposit account (MMDA) deposits on a bank’s Call Report and, thus, are not subject to reserves.

Banks select a target balance amount and Promontory Network works in accordance with its agreement with the bank to allocate customer funds to achieve average daily balances consistent with the target balance amount. Pricing, which includes all settlement fees, is typically a set spread over the Federal Funds Effective Rate or one-month LIBOR. There are no hidden costs. Many banks compare this type of funding to issuing a multi-year, floating-rate CD.

Banks settle on a daily basis, but do not pay settlement fees; the total cost of funds is the rate agreed upon with Promontory Network. The movement of funds between broker-dealers and banks is settled through IND's settlement bank – The Bank of New York Mellon. Participating banks account for IND balances on an “omnibus” level. Individual client records are maintained and managed by the broker-dealer.


  • Diversify funding sources – Receive a large block of cost-effective deposit funding
  • Manage long-term liquidity – Access a stable source of funding
  • Avoid administrative hassles – Requires no set-up fees and minimal account management


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