Here’s a quick look at how the Demand Deposit Marketplace® (DDM) program works:

Cash balances in investor accounts are sent daily into the DDM® program the same way cash balances are sent into money market mutual funds. Investor deposits are programmatically allocated into several FDIC-insured banks within the DDM program network. By depositing no more than $250,000 at each bank, investors receive FDIC insurance up to the program maximum.

For example, an investor with $10 million dollars in cash balances will have deposits allocated to at least 41 banks in the program ($250,000 x 40 banks = $10 million.) The 41st bank is included to take additional deposits in excess of the $10 million and to accommodate interest accruals.


Customer Account


The Demand Deposit Marketplace® (DDM) program


Allocation Process


FDIC-Insured Banks

$250,000 per bank up to $35 million per customer

No one bank receives more than $250,000** to ensure that your customers’ cash is fully protected at all times.

Each customer’s cash balance (whether savings or temporary liquidity pending investment opportunities) is accessible at any time and is FDIC-insured up to the total cash balances or the program maximum, whichever is less.

** In instances where customers’ cash balances exceed the program maximum, the amount exceeding the maximum may not be insured, and allocation to certain program banks may exceed $250,000.

03 Process