Ramsey, NJ (October 12, 2016) – When a client recently sold a business and needed a safe place to hold significant earnings, the team at Regency Wealth Management recommended the ultimate in secured savings — a set of FDIC-insured accounts available through the Insured Cash Sweep (ICS) Service.
The Federal Deposit Insurance Corporation insures cash deposits at individual banks up to $250,000. This limit leaves those with more than the maximum deposit exposed to risk if their bank fails. When security is the investor’s primary goal, that level of uncertainty is unacceptable.
With ICS, an investor deals only with one participating local banker who sets the rate. The banker in turn works through the ICS Network to place deposits of no more than $250,000 at participating institutions, so that the investor’s total deposited amount remains secured by FDIC guarantees.
In this case, Regency looked for and found a local bank paying one percent interest on a savings account. The rate will allow their client to earn a total of $15,000 (based on the time invested and current rate) which can be used to help pay taxes that will be owed on the profitable sale of the business.
The ICS solution was a win for the client who was able to get the sought after security with an added bonus in interest earnings.
Timothy Parker, Partner at Regency, noted that the arrangement resulted in no commission from the bank or the client for the wealth management firm. “We are happy to facilitate this deposit and to provide additional value for our client,” Parker said. “It’s just part of what we do.”