Premier MoneyVest provides all banks, large or small, with an extraordinary solution to manage reserve requirements to increase investment income. Based on Federal Reserve Regulation D, banks using MoneyVest have the opportunity to transfer transaction-based account balances into non-transaction-based account balances to lower reserve requirements, turning non-earning assets into earning assets.

System Summary

To achieve reduced reserve requirements, DDA and savings accounts are selected by Class Code to be processed by Premier MoneyVest. For each DDA or savings account, MoneyVest generates a non-transaction-based sub-account that has no reserve requirements and a transaction-based sub-account which is subject to reserve requirements. Funds from the DDA or savings account are represented in the two sub-accounts.

At the beginning of each month, MoneyVest uses multiple account level evaluation methods to determine how much of the DDA or savings account balance is distributed between the two sub-accounts. As customer activity is presented, funds are taken from the transaction account. When the transaction account can no longer support customer activity, MoneyVest automatically transfers funds from the non-transaction account into the transaction account.

For example, the optimum method for an account that typically has less than six transfers each month is to transfer the entire balance to the non-transaction account at the beginning of each calendar month, thus eliminating any reserve requirements for the month. If the account should reach the regulatory requirement limit of six transfers per month, the accounts’ non-transaction account balance is transferred to its transaction account. The non-transaction account remains active for the remainder of the calendar month.

Account Evaluation

Premier MoneyVest has multiple methods of account evaluation in order to capitalize on the varying levels of customer activity and maximize the diversity of accounts that can be processed. By reviewing an account’s history and comparing factors such as the daily transfer activity, average transactions per month and average account balance, MoneyVest predicts the optimum method for minimizing the required reserves on a month-by-month, account-by-account basis.

Characteristics and Features

• All activity is conducted on an enterprise server, which eliminates the additional work of moving files to a PC.
• Individual accounts, rather than a group of accounts, are evaluated to optimize the non-transaction account balance to ensure the maximum reduction of reserve requirements is accomplished.
• The Premier MoneyVest Master File enables all processing to take place outside the DDA and savings systems.
• The analysis of individual accounts and the assignment of optimum evaluation method occur automatically.
• Recommendations on how to address regulatory considerations prior to implementation are provided.

Customer Accounting and Notification

All activity generated by Premier MoneyVest is invisible to customers. Customer statements, interest earning, availability of funds and statements are unaffected by the transferring of funds between sub-accounts. Disclosure to customers is required by the Federal Reserve. Consult with your compliance officer to determine the required regulatory disclosures to customers.

For more on the Premier MoneyVest, contact
Information Technology, Inc. at 402.421.4207.