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A Win-Win for Depositors and Communities

Amplify your investment initiatives while keeping your large cash balances secure.

The ACT Deposit Program is a safe and convenient way to have a far-reaching impact in underserved communities across the United States. By depositing funds at Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), you are helping to finance the people and businesses that are creating economic opportunity in these areas. This program is simply the best way for investors to make a difference in local communities—while making their deposits eligible for the protection of FDIC insurance.

Deposits are placed using services from IntraFi. IntraFi is not an FDIC-insured bank, and deposit insurance covers the failure of an insured bank. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply. To meet the conditions for pass-through FDIC deposit insurance, deposit accounts at FDIC-insured banks in IntraFi’s network that hold deposits placed using an IntraFi service are titled, and deposit account records are maintained, in accordance with FDIC regulations for pass-through coverage.

 

The ACT Deposit Program was developed by the Community Development Bankers Association (CDBA) and the National Bankers Association (NBA) with support from IntraFi®. These organizations have worked together for 20 years to serve banks in raising funds used to increase lending in underserved communities.

IntraFi has placed $16 billion in deposits for CDFI and MDI banks in its network as of September 30, 2024. Through this new, innovative program, depositors have a streamlined way to fund the activities of CDFI and MDI banks. 

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60%

51%

By definition, CDFI banks designate at least 60% of their financing activities to low- and moderate-income populations or underserved communities. 
An MDI is defined as a federally insured depository institution of which 51 percent or more of the voting stock is owned by minority individuals; or a majority of the board of directors is minority and the community that the institution serves is predominantly minority. 
Challenges - Banks and Depositors

CDFI and MDI banks generally cannot gather large deposits from the lower-income communities they serve, where cash is often scarce.

The ACT Deposit Program was created with this in mind. It helps customers like you give banks support they desperately need, without forcing you to drop everything else on your agenda.

To grow meaningfully, CDFIs and MDIs must rely on large corporate and institutional depositors that understand their missions and the impact they have on their communities. ACT helps brings these depositors into the fold while giving them easy access to the protection of FDIC insurance on their large deposits. In this way, large depositors win on two fronts: they can both lend a hand to underserved communities and, at the same time, access the safety and flexibility they need to achieve business objectives.

 

 

Wide-Ranging Impact
  • Advance investment goals
  • Access impact reporting
  • Marketing data and resources illustrating success (for large depositors), including borrower stories, press release, inserts for annual reports, social media posts, etc.
Convenience, Transparency, and Safety
  • Generate broad impact by working directly with just one participating bank; or work with more, if desired
  • Know the specific banks that have received your deposit, which also let’s you know which communities that can benefit from it
  • 24/7 access to reports online
  • Keep large deposits safe with access millions in aggregate FDIC insurance across network banks
  • Earn interest at the Program Rate, which is set by a committee of CDBA and NBA member CEOs, and revisited at least quarterly.
Download more information about this program.
Deposit placement in the ACT Deposit Program within ICS (“Program”) is subject to the terms, conditions, and disclosures in the applicable agreements, including the ACT Addendum to the Deposit Placement Agreement. A portion of a deposit placed in the Program may be allocated to IntraFi network banks that are not community development financial institutions or minority depository institutions. The interest rate earned on Program deposits will likely be lower than the interest rate available on deposits outside of the Program.
 
Deposit placement through ICS is subject to the terms, conditions, and disclosures in applicable agreements. Deposits that are placed through ICS are eligible for FDIC deposit insurance coverage at the network banks. The depositor may exclude banks from eligibility to receive its funds. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA before settlement for deposits or after settlement for withdrawals or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through an IntraFi service satisfies any restrictions on its deposits. IntraFi, ICS, and IntraFi Cash Service are registered service marks, and Advancing Communities Together, and ACT are service marks, of IntraFi LLC.