Chicago-Based Insurance Brokerage Pioneers Novel Product for Large Depositors
Financial establishments and enormous depositors profit from Excess Deposit Insurance Bond provided by
The extremely rated EDB program, with sturdy limits obtainable based mostly on a evaluation of an establishment’s monetary metrics, permits banks and credit score unions nationwide to assist entice bigger deposits, keep away from pledging securities and facilitate compliance with state rules designed to guard publicly raised funds. EDB options a straightforward approval course of; premiums based mostly on limits used, not on limits obtainable; and, with its aggressive charges, is less expensive than different options.
For depositors, along with the sturdy most restrict, the EDB maintains insured standing and the correct to file a declare and provides a certificates of insurance coverage issued within the depositor’s identify. The new product is accessible for all depositor varieties and accounts, together with cash market or CD.
“Most banks limit the number of brokered deposits they take because examiners generally view these deposits as risky,” mentioned
“The EBD product should be attractive to banks because it is an easy way for them to attract new customers and retain their most valuable customers while also meeting their funding needs,” mentioned Neis. “In turn, the EDB offers a guarantee to government entities including municipalities, school districts, park districts and others that the substantial sums of cash they often generate via referenda and bond issues will be protected.”
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High-net-worth people and household places of work, too, can profit from the EDB, in accordance with Neis. “With this product, a person who receives a major inheritance of several million dollars or a family managing large cash holdings can avoid any issues or concerns faced with the
“And, for those individuals and government units who prefer to keep their money ‘at home’ in the community at a local institution, the EDB can help.”
Additional data concerning the applying course of, limits, charges and different standards can be found by visiting www.parrinsurancebrokerage.com or contacting
Parr Insurance Brokerage is rated A.M. Best A (Excellent).
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SOURCE Parr Insurance Brokerage