For purposes of the sweep in 370.4(c), does a noninterest bearing savings deposit also include a noninterest bearing money market deposit account (MMDA)?
Yes. The term “savings deposit” includes an MMDA. Therefore, a “noninterest-bearing savings deposit account” includes a noninterest-bearing MMDA. What if the funds in a guaranteed low-interest NOW account (with interest rate no higher than 0.50 percent through December 31, 2009) are swept or transferred into (or reclassified as) a low-interest savings deposit account (with interest rate no higher than 0.50 percent through December 31, 2009)? Will the funds lose the benefit of the guarantee? The FDICs regulations include the following rule: [I]n the case of funds swept from a noninterest-bearing transaction account to a noninterest-bearing savings deposit account, the FDIC will treat the swept funds as being in a noninterest-bearing transaction account. This rule is based upon the premise that the sweep or reclassification of the funds for reserve purposes does not change the basic nature of the funds for other purposes. Thus, if the funds are guaranteed prior to the sweep, the funds sh
Related Questions
- For purposes of the sweep in 370.4(c), does a noninterest bearing savings deposit also include a noninterest bearing money market deposit account (MMDA)?
- For purposes of the sweep in 370.4(c), does a noninterest-bearing savings deposit also include a noninterest-bearing money market deposit account (MMDA)?
- What is a Money Market account?
