Liquid Balance Accounts - DDA, MMA, NOW

PMA’s liquid deposit account program is specifically tailored to complement a financial institution’s primary or contingency funding plan. This program functions similarly to traditional liquid balance accounts such as the money market accounts (MMA), demand deposit accounts (DDA) and negotiable order withdrawal accounts (NOW). Each account is opened in the name and tax id of the depositor and PMA works with both the institution and public entity in facilitating the investment of these funds.

The depositor base consists of municipalities, schools, libraries, and water and park districts, most commonly known as political subdivisions. These political subdivisions receive the funding for their investments through county sales and property taxes, user fees and state and federal sources. Typically these depositors are larger in size and may require further collateralization in accordance with their state statute. Within each county, the public entity receives tax distributions throughout the year and then invests these funds to meet obligations. Funding is repeated on an annual basis making political subdivisions a reliable and consistent source of deposits. Individually, public entities may be cyclical in nature, however, when matched through PMA’s funding platform, institutions receive a diversified group of depositors across various footprints.

Working for over 35 years in the public fund sector, PMA Financial Network, LLC has created financial tools that assist in cash flow forecasting, long-term financial planning and bond proceeds management. These tools provide insight to the revenue and disbursement cycles of each entity. Individual client data is aggregated through the PMA platform and matched up with our banking partners funding needs.

The main criterion necessary in program development is:

  • Aggregate amount
  • Individual deposit amounts (min and max)
  • Initial program rate and rate reset period
  • Types of deposit vehicles to be utilized
  • Collateralization vehicles if applicable

Further streamlining of the program can be achieved for deposit funds in excess of the FDIC insured limit through a variety of collateral options on an individual or program basis.