Discovering Cash Sweep Accounts, What They Are, and Why They’re Used


Insured Cash Sweep (ICS) accounts are a type of banking service that offers customers enhanced FDIC protection on their large deposits while also giving flexibility and even potential returns. With ICS, you can tap into multi-million-dollar FDIC protection, eliminating worries about exceeding insurance limits. Your funds are intelligently allocated across a network of banks, providing both protection and the opportunity to earn returns. With ICS accounts, you can have your deposits spread across multiple institutions while managing them conveniently through a single account.

Insured Cash Sweep (ICS) service is a convenient solution offered by banks for protecting your funds. With ICS, bank customers can tap into the power of multi-million-dollar FDIC protection for their deposits. It’s a game-changer for those who have substantial sums they want to keep safe. Say goodbye to worries about exceeding FDIC insurance limits!

ICS goes beyond just safeguarding your funds; it also offers an opportunity to earn a return on your deposits. By utilizing the ICS network, your funds are intelligently allocated to demand deposit accounts or money market deposit accounts at other ICS network banks. This strategic placement ensures that you have not only maximum protection but also the potential for growth.

Flexibility is another key advantage of the ICS service. You don’t have to tie up your funds in a single institution. Instead, ICS allows you to spread your deposits across multiple banks within the network while still enjoying the convenience of managing your funds through a single account. It’s the best of both worlds — diversification, and ease of access.

What are Insured Cash Sweep accounts?

The Insured Cash Sweep program was first started by IntraFi NetworkSM. This game-changing solution has been transforming the banking industry for quite some time now, and it’s time for you to discover its remarkable benefits.

Insured Cash Sweep (ICS) accounts provide secure and convenient access to multi-million-dollar FDIC protection on large deposits, with the opportunity to earn a return and enjoy flexibility. These accounts are part of IntraFi Network’s Insured Cash Sweep program.

With ICS accounts, large cash deposits are divided into smaller amounts and spread across a network of participating banks. This structure extends FDIC insurance coverage beyond the standard limit of $250,000 per depositor per bank. By choosing a single bank offering ICS, customers can access full FDIC coverage for their entire deposit without the need for multiple banking relationships.

ICS accounts offer interest-earning options for excess cash balances, allowing funds to be placed in demand deposit accounts or money market deposit accounts based on the customer’s preferences and cash management needs. The program provides flexibility for withdrawals, including unlimited withdrawals with the ICS demand option or up to six program withdrawals per month with the ICS savings option.

How ICS accounts work

With Insured Cash Sweep accounts, your business deposits are intelligently divided into smaller amounts and allocated across multiple banks in the network. This way, you can extend your FDIC insurance coverage beyond the traditional limits, so you no longer need to worry about having all your cash concentrated in a single savings account.

By leveraging ICS, you gain access to an extended safety net that provides additional FDIC coverage without the need to maintain relationships with multiple banks. It’s a streamlined solution that offers convenience and peace of mind.

However, it’s crucial to consider the important limitations of ICS before jumping on board. While the program offers remarkable advantages, it’s essential to explore the nuances, evaluate your business needs, and ensure that ICS aligns with your financial objectives.

Why use an ICS account?

Here are a few reasons why you may want to consider an ICS account:

Extended FDIC Protection

ICS expands FDIC insurance coverage beyond the standard $250,000 limit per depositor per bank. By distributing funds across multiple banks, customers can have their entire deposit covered while working with just one bank. This means that with ICS accounts, even your large deposits can benefit from the ultimate protection backed by the credit of the federal government.

Earning potential

ICS accounts offer the chance to earn interest on excess cash balances. Customers can choose between demand deposit or money market accounts to maximize their earnings. By using demand deposit accounts or the ICS savings option for money market deposit accounts, you can put your excess cash balances to work and watch your funds grow.

Save valuable time with a streamlined process

When you have an ICS account, you don’t need to worry about opening accounts under different insurable capacities or managing multiple bank relationships. Instead, you work directly with a bank you know and trust. Receive a single monthly statement that summarizes your account activity and balances, and if you’re accustomed to collateralization, say goodbye to the hassle of tracking collateral on an ongoing basis.

Easy access to funds

ICS accounts have unlimited withdrawals through the ICS demand option. You can also opt for up to six program withdrawals per month with the ICS savings option. ICS accounts allow you to customize your approach by utilizing either or both ICS options to perfectly match your cash management and liquidity needs.

Pros and cons of ICS accounts

Whether an Insured Cash Sweep account is right for you depends on your individual circumstances and financial goals. Here are some factors to consider:


Here is a list of the benefits and drawbacks to consider.

  • Convenience
  • Interest earnings
  • Risk reduction
  • Opportunity cost
  • Fees
  • Potential lack of flexibility

Pros of an Insured Cash Sweep account

  • Convenience: A cash sweep can automate the movement of excess funds from one account to another, ensuring that money is efficiently utilized.
  • Interest earnings: Cash sweeps can potentially earn interest on idle cash balances, maximizing the return on funds.
  • Risk reduction: By sweeping excess funds into higher-yielding or safer accounts, a cash sweep can help minimize risk exposure.

Cons of an Insured Cash Sweep account

  • Opportunity cost: Depending on the interest rates and investment opportunities available, a cash sweep may not provide the highest possible return compared to alternative investment strategies.
  • Fees: Some cash sweep programs may have associated fees, which can impact overall returns.
  • Potential lack of flexibility: Cash sweeps typically involve automatic transfers, which may limit access to funds in certain situations.


What is the limit on an ICS account?

The Insured Cash Sweep (ICS) program has a limit on the amount of protection it provides, which is typically around $150 million. There are alternative options to ICS that can offer nearly unlimited capacity to protect business cash. Participating banks in the ICS program also pay a fee, which is often passed on to the customer through a reduced rate of return. Additionally, ICS only offers FDIC protection and does not provide custom deposit protection that can potentially increase yield while maintaining security.

Can I withdraw money from a cash sweep account?

Withdrawal flexibility in cash sweep accounts varies based on the terms and conditions set by your financial institution. ICS accounts generally offer convenient access to funds, but they may have limitations like withdrawal frequency or minimum balance requirements. It’s advisable to review your account agreement or contact your financial institution for specific details on withdrawal options and any associated restrictions.

Why is my money in a cash sweep account?

Your money might be placed in a cash sweep account as part of a cash management strategy employed by your financial institution. Cash sweep accounts are commonly used alongside other banking or investment products to ensure your money is actively working for you. By automatically moving funds to more advantageous accounts, cash sweep accounts aim to offer potential for higher returns and other advantages while maintaining convenience and easy access to your funds.

Key takeaways

  • Insured Cash Sweep (ICS) accounts offer customers enhanced FDIC protection on their large deposits by extending FDIC insurance coverage beyond the standard limit of $250,000 per depositor per bank, eliminating worries about exceeding insurance limits.
  • ICS accounts intelligently allocate funds across a network of banks, providing both protection and the opportunity to earn higher returns on deposits.
  • The flexibility of ICS allows customers to have their deposits spread across multiple institutions while conveniently managing them through a single account.
  • ICS accounts streamline the banking process by eliminating the need for multiple bank relationships and offering a single monthly statement summarizing account activity and balances.
  • ICS accounts provide easy access to funds through unlimited withdrawals or a specified number of program withdrawals per month.
View Article Sources
  1. Insured cash sweeps — California State Government
  2. Deposit Insurance Coverage — CFPB
  3. 8 Pros and Cons of Savings Accounts – SuperMoney
  4. What Is a Sweep Account and How Does It Work? — SuperMoney