WASHINGTON - Promontory Interfinancial Network has partnered with Metavante Corp. to offer its deposit insurance sharing service to Metavante's approximately 900 financial institution clients.
The service allows financial institutions to offer insured certificates of deposit of any size to customers through its network.
Metavante, the financial technology subsidiary of Marshall & Ilsley Corp., said it would offer the service as a marketing and customer-retention tool for its clients.
The partnership, announced this month, could enhance the appeal of the Promontory service, which was announced in January and is now offered by 250 banks.
If a customer's deposits exceed the per-account limit of $100,000, the bank can put the excess funds with another bank in the network and, in return, receive an equal amount of funds from other member banks.
The system allows each member bank to set the interest rate for the entire CD, so the customer gets one rate and deals with one institution but can get unlimited coverage.
