The New Era of Reciprocal Deposits

For years, banks used reciprocal deposits narrowly: giving large-balance customers access to expanded FDIC insurance coverage while keeping the primary banking relationship in place. That value still holds. What changed on July 11, 2026 is the scale, and with it the strategic role of the category.

The 21st Century ROAD to Housing Act, enacted as Public Law 119-101, replaced the old non-brokered reciprocal deposit cap, the lesser of $5 billion or 20 percent of total liabilities, with a tiered formula that raises the ceiling for nearly every bank. It also widened the agent-institution ratings test to include well-capitalized CAMELS 1, 2, and 3 institutions.

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R&T Deposit Solutions, LLC

R&T Deposit Solutions provides banks, broker-dealers, trust companies, wealth managers, and other financial institutions with a comprehensive selection of products and services, designed to meet their unique cash sweep and deposit funding needs.

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The New Era of Reciprocal Deposits

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