IDC Deposits

What is ‘IDC Deposits’

IDC Deposits Corp. oversees the MMAX (Money Market Account Extra) program which provides depositors with an efficient way to make large deposits – up to a maximum of $5 million – and secure FDIC insurance.

Expanded FDIC coverage is attractive to depositors, particularly when financial markets are experiencing significant volatility and firms (commercial entities, public agencies and individuals) want a safe place to park cash. The deposit is divided up between a network of 50+ IDC Deposit Network banks nationwide to meet FDIC insurance requirements.

Explaining ‘IDC Deposits’

Wells Fargo is the custodian for the MMAX account structure. By dividing a single large deposit into smaller amounts among Network banks, lenders can ensure that the depositor’s principal and interest are eligible for full FDIC protection. MMAX account holders are able to make up to six withdrawals from their account monthly.

Further Reading

  • Assessing the factors that impact non-performing loan ratio: an application on deposit banks by using dynamic panel data – papers.ssrn.com [PDF]
  • Prepaid IDC deduction-its bumpy past and questionable future – www.osti.gov [PDF]
  • Bank competition and financial stability in Asia Pacific – www.sciencedirect.com [PDF]
  • Deposit insurance and financial intermediation: The case of Indonesia Deposit Insurance Corporation – www.tandfonline.com [PDF]
  • Bank lending during the financial crisis of 2008 – www.sciencedirect.com [PDF]
  • Determinants of deposit mobilization and its role in economic growth in Ghana – dspace.knust.edu.gh [PDF]
  • Bank spread with uncertain deposit level and risk aversion – www.sciencedirect.com [PDF]
  • On the fintech revolution: Interpreting the forces of innovation, disruption, and transformation in financial services – www.tandfonline.com [PDF]
  • Finance and economic growth nexus: Complementarity and substitutability between the banking sector and financial markets in Africa, using South Africa as a case1 – academicjournals.org [PDF]
  • Capital account liberalization, institutions and financial development: cross country evidence – www.nber.org [PDF]