MAXIMIZING YOUR FDIC COVERAGE

Managing large cash balances—whether for a business, a non-profit, or your personal estate—often comes with a unique challenge: How do you keep every dollar protected?

Standard FDIC insurance covers up to $250,000 per depositor, per insured bank. For those with multi-million dollar deposits, staying under that limit usually means opening accounts at dozens of different banks, managing dozens of statements, and tracking dozens of passwords.

At MainStreet Bank, we simplify this through Deposit Placement Services

How it works: One relationship, total protection

Through our partnership with IntraFi, we offer two primary tools: ICS® (IntraFi Cash Service) and CDARS®. These services allow you to access multi-million dollar FDIC insurance while maintaining a single, streamlined relationship with us.

• The placement process: When you deposit funds with MainStreet Bank, we use the IntraFi network to “place” your funds in increments below $250,000 across a network of other carefully vetted, FDIC-insured institutions.
• The benefit: Your money is fully protected by the federal government, but you only ever deal with MainStreet Bank. You receive one consolidated statement and have one point of contact.

The “exempt bank” safety net

Because your funds are spread across other banks, we want to ensure we don’t accidentally send money to an institution where you already have a personal or business account.

If you already have a relationship with another bank (for example, another community bank, credit union, or a large national bank), you simply provide us with an exempt bank list. We will flag those institutions in the system to ensure your placed funds never land there, preventing you from exceeding the FDIC limit at that specific bank.

The risk of “overexposure”: Why one provider is better

While it might seem like a good idea to use multiple deposit placement services through different banks to “diversify,” it actually creates a significant blind spot.

The primary risk: Because different placement services may use the same network of underlying banks, you run the risk of unintended overlap.

The Scenario:

1. You use Bank A to place $1 million.
2. You use Bank B to place $1 million.
3. Both banks might unknowingly place $250,000 of your money into the same third-party institution.

In this scenario, you would have $500,000 at one bank—leaving $250,000 of your hard-earned money uninsured. You often won’t realize this overlap has occurred until you receive your month-end statements, at which point you have already been exposed to unnecessary risk.

Our recommendation

To ensure your funds remain 100% protected, we strongly recommend using a single service provider for deposit placement. By centralizing your deposits through MainStreet Bank, we can:

• Maintain a master “exempt list” of your other bank accounts.
• Monitor exactly where every dollar is placed.
• Guarantee that your total exposure at any single institution stays safely below the FDIC limit.

Ready to secure your deposits?

Don’t let the complexity of insurance limits slow your growth. Let MainStreet Bank handle the logistics while you enjoy the peace of mind that comes with full protection.