ST. PAUL, Minn. (8/23/12)--The Minnesota Credit Union Network's (MnCUN) Network Service Corp. this week furthered its initiative to strengthen credit unions' ability to accept public deposits through a newly signed partnership agreement with American Deposit Management LLC (ADM).
ADM, a treasury management and financial services company, provides Minnesota credit unions a safe and profitable fund where they can place large deposits, MnCUN said.
ADM is a deposit placement service that provides full Federal Deposit Insurance Corp. (FDIC)/National Credit Union Administration (NCUA) insurance through a network of financial institutions. Through this program, credit unions send large deposits to ADM. The deposits are then placed in separate financial institutions that have FDIC/NCUA insurance. The product provides credit unions a combination of deposit protection and competitive returns on funds, said MnCUN.
Earlier this year, MnCUN played a role in a push for the inclusion of credit unions in the language of a bill involving deposits from public entities. While the bill was signed into law in April, many Minnesota credit unions lacked the tools necessary to fully take advantage of the legislative change. MnCUN's partnership with ADM provides credit unions an investment tool for municipal deposits.
"By utilizing this product, credit unions can reaffirm their connection to and support of local communities," said John Ferstl, MnCUN vice president- Network Service Corporation.
Headquartered in Milwaukee, Wis., with offices in Minneapolis, ADM works with more than 400 credit unions and banks nationwide.