System and method for allocating excess funds in aggregated control account

A system for interim allocation of excess funds in a control operating account in an intermediary bank prior to actual distribution to one or more of a plurality of Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing destination aggregated accounts held among a plurality of deposit institutions, comprising:

• one or more computer configured with the following components:
• (A) a component for accessing one or more electronic databases comprising:
• (1) aggregated account information for a plurality of the FDIC-insured and interest-bearing destination aggregated accounts held in the deposit institutions, wherein funds from client transaction accounts of a plurality of clients are aggregated with funds of other client transaction accounts in the destination aggregated accounts held in the deposit institutions, wherein each of the respective deposit institutions holds one or more of the destination aggregated accounts;
• (2) client transaction account information for each of the respective client transaction accounts comprising:
• (i) a respective client asset balance in the respective client transaction account;
• (ii) transaction data for the respective client transaction account;
• and
• (iii) a respective balance of funds from the respective client transaction account held in each of one or more of the destination aggregated accounts holding funds of the respective client transaction account and attributed to the respective client transaction account;
• and
• (3) information on a respective amount of funds held in the control operating account at the intermediary bank for each of a plurality of respective client transaction accounts;
• (B) a component for obtaining transaction data for clients' deposits/transfers to and withdrawals/transfers from a plurality of said client transaction accounts, said transaction data comprising transaction data for one or more deposits/transfers for one or more client transaction accounts and/or transaction data for one or more withdrawals/transfers from one or more of said client transaction accounts, with the transaction data comprising a respective amount for each respective deposit/transfer and each respective withdrawal/transfer;
• (C) a component for obtaining an aggregated transaction amount based on a total net transaction from the transaction data for a plurality of the client transaction accounts;
• (D) a component for authorizing receipt in the control operating account funds from one or more of the deposits/transfers of the plurality of said client transaction accounts;
• (E) a component for monitoring the control operating account during an interim period prior to distribution of one or more fund amounts to or among the one or more destination aggregated accounts in their respective deposit institutions, the monitoring comprising determining, for each of a plurality of the client transaction accounts, whether the respective amount of funds held in the control operating account for one or more deposits/transfers of the respective client transaction account exceeds a predetermined amount;
• (F) a component for determining or having determined at least one eligible client transaction account that has funds in one or more of the destination aggregated accounts in one or more of the deposit institutions and that can have funds allocated to the at least one eligible client transaction account in the control operating account in the intermediary bank on an interim basis while maintaining insurance eligibility;
• (G) a component for changing or having changed an attribution in the one or more electronic databases a first amount of funds of one of the client transaction accounts having funds in the control operating account in the intermediary bank that exceeds the predetermined amount, to the at least one eligible client transaction account, prior to the distribution of the amounts of funds to one or more of the destination aggregated accounts, on at least an interim basis in the one or more electronic databases;
• (H) a component for changing or having changed an attribution in the one or more electronic databases of at least a second amount of funds in one or more of the destination aggregated accounts in one or more of the deposit institutions, to the one client transaction account with the excess amount in the control operating account, in order to reduce the amount of funds listed in the one or more electronic databases for the one client transaction account in the control operating account;
• and
• (I) a component for updating based on the attribution changes of operations (G) and (H) one or more of the electronic databases with data for each of a plurality of the client transaction accounts, with updated data for each of the client transaction accounts comprising a respective balance of funds of the respective client transaction account held in each of one or more of the deposit institutions holding funds of the respective client transaction account and in the control operating account;
• (J) a component for allocating the aggregated transaction amount to one or more of the destination aggregated accounts in one or more of the deposit institutions;
• (K) a component for generating an instruction to have distributed to one or more of the destination aggregated accounts in one or more of the deposit institutions the aggregated transaction amount in accordance with the allocating step.

A program product for interim allocation of excess funds in a control operating account in an intermediary bank prior to actual distribution to one or more of a plurality of Federal Deposit Insurance Corporation (FDIC)-insured and interest-bearing destination aggregated accounts held among a plurality of deposit institutions, comprising:

• one or more computer-readable media having computer readable program code embodied therein or among them if more than one, to be executed by a computer, the computer readable program code comprising:
• (A) program code for accessing one or more electronic databases comprising:
• (1) aggregated account information for a plurality of the FDIC-insured and interest-bearing destination aggregated accounts held in the deposit institutions, wherein funds from client transaction accounts of a plurality of clients are aggregated with funds of other client transaction accounts in the destination aggregated accounts held in the deposit institutions, wherein each of the respective deposit institutions holds one or more of the destination aggregated accounts;
• (2) client transaction account information for each of the respective client transaction accounts comprising:
• (i) a respective client asset balance in the respective client transaction account;
• (ii) transaction data for the respective client transaction account;
• and
• (iii) a respective balance of funds from the respective client transaction account held in each of one or more of the destination aggregated accounts holding funds of the respective client transaction account and attributed to the respective client transaction account;
• and
• (3) information on a respective amount of funds held in the control operating account at the intermediary bank for each of a plurality of respective client transaction accounts;
• (B) program code for obtaining transaction data for clients' deposits/transfers to and withdrawals/transfers from a plurality of said client transaction accounts, said transaction data comprising transaction data for one or more deposits/transfers for one or more client transaction accounts and/or transaction data for one or more withdrawals/transfers from one or more of said client transaction accounts, with the transaction data comprising a respective amount for each respective deposit/transfer and each respective withdrawal/transfer;
• (C) program code for obtaining an aggregated transaction amount based on a total net transaction from the transaction data for a plurality of the client transaction accounts;
• (D) program code for authorizing receipt in the control operating account funds from one or more of the deposits/transfers of the plurality of said client transaction accounts;
• (E) program code for monitoring the control operating account during an interim period prior to distribution of one or more fund amounts to or among the one or more destination aggregated accounts in their respective deposit institutions, the monitoring comprising determining, for each of a plurality of the client transaction accounts, whether the respective amount of funds held in the control operating account for one or more deposits/transfers of the respective client transaction account exceeds a predetermined amount;
• (F) program code for determining or having determined by one or more computers, at least one eligible client transaction account that has funds in one or more of the destination aggregated accounts in one or more of the deposit institutions and that can have funds allocated to the at least one eligible client transaction account in the control operating account in the intermediary bank on an interim basis while maintaining insurance eligibility;
• (G) program code for changing or having changed an attribution in the one or more electronic databases a first amount of funds of one of the client transaction accounts having funds in the control operating account in the intermediary bank that exceeds the predetermined amount, to the at least one eligible client transaction account, prior to the distribution of the amounts of funds to one or more of the destination aggregated accounts, on at least an interim basis in the one or more electronic databases;
• (H) program code for changing or having changed an attribution in the one or more electronic databases at least a second amount of funds in one or more of the destination aggregated accounts in one or more of the different deposit institutions, to the one client transaction account with the excess amount in the control operating account, in order to reduce the amount of funds listed in the one or more electronic databases for the one client transaction account in the control operating account;
• and
• (I) program code for updating based on the attribution changes of steps (G) and (H) one or more of the electronic databases with data for each of a plurality of the client transaction accounts, with the data for each of the client transaction accounts comprising a respective balance of funds of the respective client transaction account held in each of one or more of the deposit institutions holding funds of the respective client transaction account as well as in the control operating account;
• (J) program code for allocating the aggregated transaction amount to one or more of the destination aggregated accounts in one or more of the deposit institutions;
• (K) program code for generating an instruction to have distributed to one or more of the destination aggregated accounts in one or more of the deposit institutions the aggregated transaction amount in accordance with the allocating step.