Banks that are in a Fed Funds Sold position now have an additional investment choice with the Target Account
CDC created this unique Money Market program in order for banks to achieve the FDIC insurance safeguard for larger investments.
When you invest a large deposit into our network, the funds are distributed to banks in our Deposit Network® , in increments of less than the FDIC insurance maximum to ensure that both principal and interest are eligible for full FDIC insurance.
CDC's Network of well-capitalized FDIC insured banks allows us to offer this alternative to the Fed Funds Sold option. By investing excess funds with Charity Deposits Corp. Network, the bank is able to achieve the safety of an FDIC-insured money market deposit.
Some of the benefits include:
Higher Interest Rate