FICA for Banks


The Federally Insured Cash Account (FICA) was created with the specific needs of banks in mind. FICA enables community and regional banks to access stable, low cost core cash reserves from corporate and public sector treasury professionals that would otherwise keep cash in money center banks or money market funds. FICA enables its depositors to access multiple money market demand accounts via a single, convenient account, with the benefit of full FDIC insurance.

Key Benefits for Banks:

  • Stable, sticky and reliable deposit funding at your standard money market or savings rate
  • Easy to participate; client custodian bank will open a standard money market account at your bank
  • Simple to set up; no additional work, no systems integration and no special processes
  • Tailor funding levels to your needs; we will work with you to set deposit growth rates and levels


Reliable & Stable Funding

  • Stable deposits from corporate cash managers and treasuries, institutional investors, and state and local municipal reserves
  • Depositor activity is limited to ensure stability, no overnight money
  • Individual depositor activity is closely monitored to insure stability

Under Your Control

  • Your bank can customize the amount of growth and actual balances and easily change them as your funding needs change
  • No reciprocal deposit arrangements
  • No term commitments

Administrative Ease

  • A single MMA or savings account is opened in the name of our custodian bank
  • Account is opened with your documents;
    there are no special forms or contracts
  • The custodian bank is responsible and accountable for Bank Secrecy Act (BSA) and anti-money laundering (AML) requirements
  • Your bank does not need to track and report on customer-specific know­your-customer (KYC) or customer identification program (CIP) activities
  • Dedicated relationship managers serve as your single point of contact

Higher Profits

  • No start up, maintenance or annual fees
  • The rate paid on the account is the same rate you pay to all other customers; there are no special rate arrangements
  • No collateral is required
  • No need for you to put in place any new processes or technology - just provide normal online access to the account once opened
  • Settle on a daily basis, but there are no settlement fees
  • No fees or hidden costs
  • No individual client support - no expenses related to marketing, check processing, customer service, branch support



  • No term commitment
  • Only available to well-capitalized, well managed banks
  • Deposits limited to no more than 3% of your bank’s total deposits (with limited exceptions to 5%)


  • Highly diversified balances
  • Limited ACH only transaction activity
  • No impact on your bank’s average cost of funds


  • Not contractual
  • Rates are not negotiated or subject to funding levels; the rate paid on the account is the same rate you pay to other customers

Account Set-Up

  • Open a single savings or money market account in the name of client’s custodian bank
  • Account is opened with your documents; there are no special forms
  • No ongoing administrative support is required

About the Providers

StoneCastle Cash Management, LLC

  • SEC Registered Investment Advisor
  • An affiliate of StoneCastle Partners LLC, a leading asset management and financial services company dedicated to investing and serving the community banking sector
    • StoneCastle’s team of banking and investment professionals includes former senior treasury professionals, senior lending officers, regulatory and securities attorneys, bank debt and equity analysts and former rating agency analysts
    • Proudly invested in over 220 individual small and medium-sized banks which are the cornerstones of their local communities
    • Currently manages over $3 billion for institutional investors