Money fund bank system

Abstract

Providing interest to clients' deposited finds funds without the legal limitation on the number of demand withdrawals from deposit accounts is accomplished by an administration system that keeps all of the records for the clients' deposits and withdrawals, calculates the total of the deposits and withdrawals for all clients, and uses the calculation to determine whether funds are deposited to or withdrawn from a single deposit account in which all clients' deposit funds are kept. Clients can make unlimited withdrawals, such as by check, credit card, debit card, or electronic transfer, through the administrator. By placing the administrator as the holder of a single account, legal exemptions to the limitation on earning interest in demand accounts is effectively facilitated.

What is claimed is: 
     
       1. A method for managing a plurality of demand accounts for multiple clients whose funds are held at a banking institution in a single insured money market deposit account, comprising:
 providing a database having client information for each account;   administering clients' deposits to and withdrawals from each of their demand accounts;   authorizing or rejecting the use of funds in a particular client's demand account for each demand payment requested from that client's account;   determining the net transaction aggregated across all said demand account deposits and withdrawals on a regular periodic basis;   using the determination of the net transaction to deposit funds to or withdraw funds from said single insured money market deposit account;   distributing interest paid on said single money market deposit account to said clients' demand accounts; and   updating the database for each client's deposit and authorized demand payment.   
     
     
       2. The method of  claim 1 , wherein withdrawals are made by at least one method selected from the group consisting of drafts (checks), credit card, debit card, sweeps, electronic transfer, and combinations thereof. 
     
     
       3. The method of  claim 1 , wherein deposits are made by at least one method selected from the group consisting of drafts (checks), sweeps, electronic transfers, and combinations thereof. 
     
     
       4. A system for managing a plurality of demand accounts for multiple clients whose funds are held at a banking institution in a single insured money market deposit account, comprising:
 a database having client information for each demand account;   a device for administering clients' deposits to and withdrawals from each of their demand accounts;   a device for authorizing or rejecting the use of funds in a particular client's demand account to be used for each demand payment requested to be paid drawn on funds from that client's demand account;   a device for determining the net transaction aggregated across all said demand account deposits and withdrawals on a regular periodic basis;   a comparison device for determining from the net transaction whether to deposit funds to or withdraw funds from said single insured money market deposit account;   a device for distributing interested earned on said money market deposit account among the clients; and   a device for updating the database for each client's; deposits and authorized demand payments.   
     
     
       5. The system of  claim 4 , wherein withdrawals are in the form of at least one type selected from the group consisting of drafts (checks), credit card, debit card, sweeps, electronic transfers, and combinations thereof. 
     
     
       6. The system of  claim 1 , wherein deposits are in the form of least one type selected from the group consisting of drafts (checks), sweeps, electronic transfers, and combinations thereof. 
     
     
       7. A data processing system for implementing and managing plural client transaction accounts providing a return to each of said clients, by aggregating the assets associated with said client transaction accounts for deposit in a corresponding insured deposit account and providing a return on assets held therein, said system comprising:
 a. transaction input processor for receiving transactions, including deposits and/or withdrawals to one or more of said plural client accounts;   b. account computation processor responsive to said transactions and capable of calculating a corresponding balance for each said client transaction account, including determining and crediting said transaction account with a return associated with said balance of each said client accounts;   c. memory module storing data on said plural client accounts, wherein account balances are periodically updated to include said corresponding return to each of said client accounts; and   d. said computation processor assessing the aggregate activity of said plural client transaction accounts for a respective period, and calculating an asset adjustment to said insured deposit account, to permit adjustment of the amount in said insured deposit account by a method consistent with maintaining the insured and interest bearing status of said insured deposit account.   
     
     
       8. The system of  claim 7 , wherein said transaction input processor accesses a client account by one or more transaction methods selected from the group consisting of check, withdrawal, credit card, electronic fund transfer, debit card, sweep, internet communication, voice activation, and banking by telephone. 
     
     
       9. The system of  claim 8 , wherein said transaction input processor accesses said account by three or more of said methods. 
     
     
       10. The system of  claim 8 , wherein said transaction input processor accesses said account by five or more of said methods. 
     
     
       11. The system of  claim 7 , wherein said computational processor responds to withdrawal transactions for a client's account by assessing fund availability and based, in whole or in part, thereon approving or denying said withdrawal transaction. 
     
     
       12. The system of  claim 11 , wherein said computational processor applies margin requirements to said client's account in assessing a withdrawal transaction therefrom. 
     
     
       13. The system of  claim 7 , wherein the return for the insured deposit account is used to determine the returns for the plural client accounts. 
     
     
       14. The system of  claim 8 , wherein transactions further include automated bill paying. 
     
     
       15. The system of  claim 7 , wherein periodic deposits to a client's account include one or more of the following: direct automated payroll; direct social security; automated sweep from another of that client's accounts; electronic funds transfer; and manual check deposit. 
     
     
       16. A data processing method for tracking and managing a plurality of client transaction accounts and providing a return to each of said accounts, the funds associated with said accounts aggregated for deposit in a corresponding insured deposit account providing a return on assets held therein, comprising the steps of:
 a. creating one or more account memory ledgers and storing therein select data for one or more of said plurality of client transaction accounts;   b. storing in said memory ledgers account data including a current or periodic account balance as well as an identification of an account owner or beneficiary;   c. tracking deposits to and withdrawals from each of said client transaction accounts and adjusting the balance for each in response to such transactions;   d. creating an insured deposit account in which funds from a plurality of said client transaction accounts are deposited, and managing said insured deposit account by assessing the aggregate activity of said plural client transaction accounts for a respective period and calculating an asset adjustment to said insured deposit account to permit adjustment of the amount in said insured deposit account by a method consistent with maintaining the insured and return bearing status of said insured deposit account; and   e. calculating an aggregate transactional value for said client accounts having funds held in said insured deposit account over a selected period of time and determining a net asset adjustment for said insured account, to be implemented in a manner consistent with retaining its status as insured and providing a return on the assets.   
     
     
       17. The method of  claim 16 , wherein said transactions into or out of a client's transaction account include sweeps into or sweeps out of said account. 
     
     
       18. The method of  claim 16 , further comprising calculating a corresponding return for each client transaction account having funds maintained in said insured account based on the return on the assets held in the insured deposit account. 
     
     
       19. The method of  claim 18 , wherein withdrawal transactions resulting in a negative net balance for a client's account trigger a margin approval process for such account. 
     
     
       20. A method for managing plural transaction accounts for multiple clients, comprising:
 providing a database operatively connected to one or more computers, the database having (i) client information for each of a first plurality of the transaction accounts, and (ii) pooled account information associated with a single insured money market deposit account at a licensed banking institution holding funds from the first plurality of transaction accounts;   processing, by the one or more computers, client account transaction data comprised from a second plurality of the transaction accounts, the client account transaction data for a respective transaction account comprising data associated with one or more deposits and/or transfers to and/or one or more withdrawals and/or transfers from the respective transaction account during a period of time, wherein during a month period client account transaction data for at least one respective transaction account comprises at least more than six (6) withdrawals and/or transfers by check and/or debit card and/or ACH debit and/or sweep from said respective transaction account;   determining, by the one or more computers, a net transaction aggregated across all of said transaction data associated with at least the second plurality of the transaction accounts for the period of time, where more than six (6) of the net transactions determined over the month period are negative;   determining, by the one or more computers, a net credit/debit amount based on at least in part the respective net transaction associated with the respective period of time, which corresponds to an amount of funds to deposit and/or transfer to or withdraw and/or transfer from the single insured money market deposit account at the licensed banking institution through a different bank, so that during the month period there are more than six (6) net credit/debit amounts that are negative and correspond to withdrawals and/or transfers from the single insured money market deposit account;   obtaining data, at the one or more computers, for an amount of interest earned in the licensed banking institution on funds held in said single insured money market deposit account;   obtaining data, at the one or more computers, for each of a respective third plurality of the transaction accounts, for a respective amount of interest to be credited to the respective transaction account from the interest earned in the single insured money market deposit account at the licensed banking institution;   distributing by crediting the transaction accounts, using the one or more computers, the interest from said single insured money market deposit account to said transaction accounts based at least in part on the respective amounts of interest obtained for the respective transaction accounts; and   updating, by the one or more computers, the client information and the pooled account information in the database, taking into consideration at least in part the client account transaction data, the net credit/debit amounts, and the amounts of interest credited to the respective transaction accounts.   
     
     
       21. The method of claim 20, wherein client transaction account data comprises withdrawal data associated with one or more withdrawals made by at least one method selected from the group consisting of drafts (checks), credit card, debit card, sweeps, electronic transfer, and combinations thereof. 
     
     
       22. The method of claim 20, wherein client transaction account data comprises deposit data associated with one or more deposits made by at least one method selected from the group consisting of drafts (checks), sweeps, electronic transfers, and combinations thereof. 
     
     
       23. The method of claim 20, further comprising authorizing or rejecting the use of funds in a particular client's transaction account for each demand payment requested from that client's transaction account. 
     
     
       24. The method of claim 20, wherein one or more of the transfers and/or withdrawals from said single insured money market deposit account are requested in person. 
     
     
       25. The method of claim 20, wherein one or more of the transfers and/or withdrawals from said single insured money market deposit account are requested by mail. 
     
     
       26. The method of claim 20, wherein one or more of the transfers and/or withdrawals from said single insured money market deposit account are requested by messenger. 
     
     
       27. The method of claim 20, wherein one or more of the transfers and/or withdrawals from said single insured money market deposit account are requested by telephone and distributed by mail. 
     
     
       28. The method of claim 20, wherein one or more of the transfers and/or withdrawals from said single insured money market deposit account are requested by automated teller machine. 
     
     
       29. The method of claim 20, wherein for the step of determining a net transaction by aggregating across all transaction account deposits and withdrawals of the second plurality of the transaction accounts, one or more of the withdrawals are made by at least a debit card. 
     
     
       30. The method of claim 20, further comprising:
 determining for each of the respective third plurality of the transaction accounts, via the one or more computers, a respective amount of interest owed to the respective transaction account as a function of a respective total amount of funds from the respective transaction account held in the single insured money market deposit account at the licensed banking institution.   
     
     
       31. The method of claim 20, wherein the second plurality is equal to the first plurality. 
     
     
       32. The method of claim 20, wherein the third plurality is equal to the first plurality.