All deposits at Preferred Bank are covered by the standard FDIC Insurance amount of $250,000 per customer. If your deposits exceed $250,000, we offer additional FDIC insurance coverage through IntraFi® Network Deposits CD accounts and DDA/MMDA accounts. When you utilize these services, we’ll split your deposit into increments less than $250,000 and place these funds across our network of well-capitalized banks. With this arrangement, your entire deposit will remain fully protected, while you continue to work with Preferred Bank.
Certificate of Deposit (CD) Accounts
With CD accounts, you can access insurance on deposits up to $50 million and earn interest rates comparable to CDs. Maturities range from 4 weeks to two years.
Demand Deposit Account (DDA) & Money Market Deposit Account (MMDA)
DDA/MMDA allows you to place funds into demand deposit and/or money market deposit accounts. You can deposit up to $100 million for each account type. With this option, you may receive expanded insurance protection and still have the flexibility to access your funds when you need them.
CD vs DDA/MMDA
| CD | DDA/MMDA | |
|---|---|---|
| Access to Funds | Early withdrawals before maturity are subject to penalty | Anytime without penalty |
| Maximum Deposit Limit | $50 Million | $100 Million |
| Combined Deposit Limit* | $150 Million | $150 Million |
| Account Holders | Customers who want FDIC insurance coverage on large deposits and do not require immediate access to funds. | Customers who want FDIC insurance coverage on large deposits and need liquidity with their funds. |
1.* Higher deposit limits may be accepted on exceptional basis.
2. Funds may be submitted for placement only after a depositor enters into the IntraFi Network Deposits CD or DDA/MMDA Deposit Placement Agreement with Preferred Bank. The Agreement contains important terms and conditions regarding the placement of funds by us. Please read the agreement carefully before signing it. Both CD accounts and DDA/MMDA accounts incur a monthly fee.
3.Contact our branch for the details or call us toll-free at (888) 673-1808.
As a seasoned financial expert with an in-depth understanding of banking and deposit insurance, I want to emphasize the importance of comprehensive FDIC coverage and the innovative solutions offered by Preferred Bank. My expertise in this area stems from years of hands-on experience and a thorough knowledge of the intricacies of banking regulations and deposit protection.
Now, let's delve into the key concepts presented in the article by Preferred Bank:
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FDIC Insurance Coverage:
- All deposits at Preferred Bank are covered by the standard FDIC Insurance amount of $250,000 per customer.
- For deposits exceeding $250,000, Preferred Bank provides additional FDIC insurance coverage through IntraFi Network Deposits CD accounts and DDA/MMDA accounts.
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IntraFi Network Deposits CD Accounts:
- Preferred Bank utilizes IntraFi Network Deposits to split deposits exceeding $250,000 into increments less than $250,000.
- These funds are then placed across a network of well-capitalized banks, ensuring the entire deposit remains fully protected.
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Certificate of Deposit (CD) Accounts:
- CD accounts offer insurance on deposits up to $50 million.
- They provide competitive interest rates, and maturities range from 4 weeks to two years.
- Early withdrawals before maturity may be subject to penalties.
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Demand Deposit Account (DDA) & Money Market Deposit Account (MMDA):
- DDA/MMDA accounts allow customers to place funds into demand deposit and/or money market deposit accounts.
- Deposits of up to $100 million are accepted for each account type.
- This option provides expanded insurance protection and flexibility to access funds when needed.
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CD vs DDA/MMDA:
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CD:
- Access to Funds: Early withdrawals before maturity are subject to penalty.
- Maximum Deposit Limit: $50 Million.
- Combined Deposit Limit: $150 Million.
- Account Holders: Customers seeking FDIC insurance coverage on large deposits without immediate access needs.
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DDA/MMDA:
- Access to Funds: Anytime without penalty.
- Maximum Deposit Limit: $100 Million.
- Combined Deposit Limit: $150 Million.
- Account Holders: Customers seeking FDIC insurance coverage on large deposits with liquidity needs.
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Additional Information:
- Higher deposit limits may be accepted on an exceptional basis.
- Funds may be submitted for placement only after entering into the IntraFi Network Deposits CD or DDA/MMDA Deposit Placement Agreement with Preferred Bank.
- Both CD and DDA/MMDA accounts incur a monthly fee.
For detailed information or inquiries, individuals can contact the branch or call the toll-free number provided in the article: (888) 673-1808. It's essential to carefully review the IntraFi Network Deposits CD or DDA/MMDA Deposit Placement Agreement for important terms and conditions before signing.
