Reciprocal Deposits
Reciprocal deposits give your largest depositors access to millions in aggregate deposit insurance* across network members through a single account at your institution. Matching balances flow back from the network, so your balance sheet stays whole and the relationship stays yours.
The largest public, commercial, wealth, and fiduciary balances move on safety long before rate. Reciprocal deposits let community and regional institutions win those accounts without leading on price.
Matching balances flow back from the network, so there is no net balance-sheet impact and you keep lending against the funds. The depositor sees one account, one statement, one relationship.
ModernFi operates the network; member institutions own it. NBID is owned by its member banks and the CUSO by its credit unions, so governance, pricing, and economics align with the institutions whose deposits power it.
* ModernFi, Inc., ModernFi Deposit Services LLC, and ModernFi CUSO LLC are not FDIC-insured banks and are not NCUA-insured credit unions. Deposit insurance covers the failure of an insured institution. Certain conditions must be satisfied for “pass-through” FDIC or NCUA deposit insurance coverage to apply. Deposits placed through the NBID network at FDIC-insured banks are eligible for FDIC pass-through coverage; deposits placed through the ModernFi CUSO network at NCUA-insured credit unions are eligible for NCUA pass-through coverage, in each case up to $250,000 per depositor per institution and subject to the governing program agreements. A list identifying NBID network banks is available here. A list identifying ModernFi CUSO network credit unions is available here.
How it works
The network places funds at other institutions in increments under the insured limit, so balances become eligible for pass-through deposit coverage,* then routes matching deposits back so the balance-sheet impact nets to zero.
Your depositor signs your institution's standard account agreement and a network terms acceptance. One relationship, one statement, one tax form.
Balances above the insured limit are split into increments under $250,000 and routed to other member institutions, with each portion eligible for pass-through deposit coverage.*
Other members route equivalent balances back to you. The balance sheet nets to zero, the depositor is eligible for coverage, and the relationship stays at your institution.
Technology & Innovation
ModernFi reduces friction for depositors and operational lift for institutions.
New features, functionality, and intelligence built to our partners’ specifications.
Depositor experience. Integrated into your web and mobile applications. Branded as yours.
Institution experience. Built into your core. Available in your dashboard. APIs for your developers.
Built into your channels. Integrated into your online banking and mobile app to keep the depositor relationship with you.
One account, one statement, one 1099. Depositors see a single balance, a single statement, and a single tax form. You own the relationship.
Onboarding to your standards. Account opening and onboarding match the workflows your customer and compliance teams already follow.
Direct core integrations. Direct connections to the major core providers and more. Accounts open, fund, and report inside the workflows your operations team already use.
Real-time portal visibility. Live allocations, counterparty concentration, fee income, and pass-through balances. Visible to your treasury team as positions move on the network.
API access for your developers. Full documentation at docs.modernfi.com. Pull data into your reporting systems. Connect with the tools your treasury, ALCO, and risk teams rely on.
Illustrative example. Figures, institutions, and individuals shown are hypothetical and do not represent actual or expected results or any real customer or network member. Where coverage is shown, deposits are eligible for pass-through FDIC or NCUA insurance, subject to applicable conditions, up to $250,000 per depositor, per institution.
Built for every large-depositor segment
Reciprocal deposits work in the conversations your relationship managers are already having. The same network and workflow win municipal mandates, business operating accounts, wealth balances, and fiduciary funds.
Hold operating and reserve balances for state, county, and municipal treasuries, agencies, and school districts. Win mandates on safety and service without tying up a securities portfolio as collateral. Public-funds balances on the network grew over 100% year over year.
Serve business owners, operating accounts, and payroll balances that sit well above the insured limit. Add reciprocal deposits to your treasury offering, deepen existing relationships, and grow share of wallet.
Compete with national banks on safety for the largest individual relationships in your book. Consolidate the balances clients would otherwise scatter across institutions, and keep the relationship local.
Pair growth with full insurance inside trust, financial planning, and advisory services. A single account that protects principal attracts clients who require safety alongside returns.
Serve endowment reserves, donation accounts, and impact funds whose boards mandate fully insured cash. A strong fit for HOAs and community associations carrying large reserve balances.
Attorney trust (IOLTA / IOLA), real-estate and 1031 escrow, and property-management trust accounts. Configurable interest remittance meets operational requirements other networks leave unaddressed.
Why now
After 2023, depositors stopped taking insurance for granted, and balances above the insured limit started to move. Reciprocal deposits, an instrument banks have relied on for decades, became the answer for winning and keeping those relationships without leading on rate.
It could almost come to the point where institutions get asked, why doesn't your institution have a reciprocal deposit relationship? This could very well be the linchpin.
Reciprocal deposits level the playing field for community institutions.
$400B+
Reciprocal deposit market
The reciprocal deposit market has nearly tripled in recent years as depositors moved balances above the insured limit.
Reciprocal deposit market size from ModernFi network and industry analysis, 2026. Quotations reflect the speakers’ own views. No regulator endorses ModernFi or any deposit network.
The proof
Member institutions use reciprocal deposits to grow funding faster than the market, on safety rather than rate, across every large-depositor segment they serve.
Commercial
Typical relationship
Public funds
Typical relationship
Private wealth
Typical relationship
Nonprofits & fiduciary
Typical relationship
Typical relationship balances from the ModernFi whitepaper, April 2026; illustrative. Share of network deposits from NBID network update, depositor mix by $, April 2026.
Three motions, one network
Join the network
Get in touch to learn how the ModernFi team can help your institution grow deposits, deepen relationships, and scale revenue.
