Here are important summary points when considering the Demand Deposit Marketplace® (DDM) program as an alternative to money market mutual funds:
- Access to high levels of FDIC insurance through participating banks in the program that money market mutual funds and traditional bank DDA, MMDA and CDs do not offer.
- FDIC insurance reduces risks associated with money market mutual funds.
- Daily liquidity with late cutoff times.
- Potential yields and other benefits are competitive to other sweep options
- Reliable, stable funding source that can be placed on your balance sheet, which is not possible with money market mutual funds.
- Fully integrated with most major Trust Accounting Systems.