LGIPs ability to meet redemptions depends entirely on the market, not the U.S. government. LGIPs hold very little cash and sell securities to generate cash. No one has any obligation to purchase anything the LGIP may be selling, especially during times of stress.
FDIC Insured Deposits are guaranteed by the full-faith of the U.S. Government - this is why most institutions keep some money in demand deposits at a bank. It is a simple, reliable and proven source of cash in all market conditions.
LGIPs hold deposits local governments would not be allowed to hold independently.
Example: Florida PRIME Top 5 Deposit Positions = 25% of your LGIP asset
Bank
Country
Amount
% of Total Holdings
Sumitomo Mitsui
Japan
$1,664,000,000
5%
Cooperative Rabobank USA
Netherlands
$1,660,000,000
5%
ABN Amro Bank NV
Netherlands
$1,665,000,000
5%
Australia & New Zealand Banking Group
Australia
$1,665,000,000
5%
DNB Bank ASA
Norway
$1,660,000,000
5%
25% of your LGIP asset is held in uninsured, uncollateralized deposits at foreign banks (not QPDs)
The Smarter Way to Use Your Existing Bank
Increase the rate and FDIC insurance of your demand deposits without changing your existing banking relationship.

The Smarter Way

to Use Your Existing Bank

Increase the rate and FDIC insurance of your demand deposits without changing your existing banking relationship.
Best Practice is to keep at least 2 - 3 months of operating expenses in demand deposits at your bank.
Demand Deposit Accounts Serve Two Purposes:
1. Enabling you to pay bills
2. Holding funds for an emergency - like a life preserver
Life preservers are rarely needed, but in an emergency, they are indispensable.
You would never set sail without life preservers.

MMFs / LGIPs are not meant to be used as a life preserver

LGIPs are not to

be used as life jackets

LGIP1
U.S. Govt. Guaranteed
100% FDIC Insured Deposits
Uninsured Bank Deposits (41%)
Market Dependent Assets (59%)
U.S. Govt. Guaranteed
100% FDIC Insured Deposits
LGIP1
Uninsured Bank Deposits (41%)
Market Dependent Assets (59%)

If you ever need a life preserver in an emergency, you want certainty it works

Some things may look alike

but are actually very different

Example: Florida PRIME (holdings as of March 2025)
Example: Florida PRIME (holdings as of March 2025)
The Problem
Deposit cushions are necessary but large banks pay low rates on demand deposits.
The Solution
We help organizations get a higher rate on their demand deposit cushion.
FDIQ offers a unique combination of
High Rate
100% Demand Deposits
$100M of FDIC Insurance
Enhance your deposits with no disruption to your existing banking relationship.
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