IntraFi has conducted thorough testing on its deposit placement services, with many billions of dollars, and has ensured compliance with all relevant FDIC requirements. Thousands of depositors, including many at Bank of the Sierra, have successfully used these services to place funds in demand deposit accounts, money market deposit accounts, CDs, or a combination of these. Since IntraFi’s establishment in 1933, no depositor has ever lost a single cent of their FDIC-insured deposits. IntraFi is a trusted fintech provider chosen by over 3,000 banks across the country and has received an exclusive endorsement from the American Bankers Association.

The FDIC provides insurance coverage of up to $250,000 for each deposit account held by a customer at an FDIC-insured depository institution. Banks that offer IntraFi’s services are part of a network of financial institutions affiliated with IntraFi. When a depositor places funds through IntraFi’s services, the amount is divided into smaller portions that do not exceed the standard FDIC limit and then deposited into accounts at multiple network member banks. As a result, the deposited amount becomes eligible for FDIC insurance coverage at each member bank. By partnering exclusively with Bank of the Sierra, depositors can access insurance coverage from multiple institutions.

Yes, your confidential information is kept secure, and your relationship remains between you and Bank of the Sierra.

For over 90 years, depositors have had the option of depositing funds in multiple FDIC-insured banks to access deposit insurance coverage beyond the standard single-bank coverage, which is currently set at $250,000. The FDIC has been aware of this practice for a long time and has even encouraged it in some instances. IntraFi’s deposit placement services allow depositors to achieve the same result more easily while offering additional benefits, such as enabling banks to promote local lending through reciprocal deposits that are received by the depositor’s bank in exchange for deposits placed at other banks. The FDIC regularly acknowledges that deposit placement services can expand deposit insurance coverage. For instance, a 2016 “Frequently Asked Questions” document by the FDIC described how a participating bank could place funds at other participating banks through a bank network to provide its customer with full insurance coverage on a deposit exceeding $250,000. Additionally, the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 defines reciprocal deposits and provides that certain reciprocal deposits are deemed not to have been obtained by or through a deposit broker. The FDIC subsequently issued regulations to implement the Act’s requirements.

In most cases, when a network member fails, the bank’s deposits placed through IntraFi’s services are transferred to a healthy institution, which is the FDIC’s preferred approach to dealing with bank failures. In cases where the FDIC is unable to find a healthy institution that is willing to accept the transfer, it arranges for the payment of the insured principal and accrued interest to depositors. Typically, these payments are made in a matter of days.