Excess Balance Account Setup

Setup of an excess balance account should be coordinated by the institution intending to perform the role of excess balance account agent. An institution that wishes to act as agent for an excess balance account must have its own account at a Federal Reserve Bank. The institution must also have the ability to carry out the responsibilities of an agent and comply with the terms and conditions established by the Federal Reserve Banks with respect to the operation of the excess balance account. An agent for an excess balance account need not be eligible to earn interest on its own balance maintained at a Federal Reserve Bank.

Each participant in an excess balance account must be eligible to earn interest on the balance held in the excess balance account at the Federal Reserve Bank. Institutions that are eligible to earn interest are depository institutions (banks, savings banks, mutual savings banks, savings associations and credit unions), branches and agencies of foreign banks, Edge Act and agreement corporations, and trust companies. Each participant can participate in only one excess balance account.

To setup an excess balance account:

1. The agent for the excess balance account must first complete the Excess Balance Account Participant Listing (PDF) and submit the form to its Administrative Reserve Bank.
2. After the Administrative Reserve Bank verifies eligibility of the agent and participants and approves establishment of the excess balance account, the agent for the excess balance account must:
1. Complete the Excess Balance Account Agreement (PDF). The form must be signed by an individual on the agent's Official Authorization List (OAL) (PDF).
2. Obtain a completed Appendix A (PDF) of the Excess Balance Account Agreement (PDF) from each excess balance account participant. The form must be signed by an individual on the participant’s OAL (PDF).
3. Compile a confirmed Excess Balance Account Participant Listing (PDF) form.
3. Submit the above required documentation to the Administrative Reserve Bank's Excess Balance Account Contacts via fax or e-mail with the agent's original Excess Balance Account Agreement and Appendix A sent via mail.
4. Upon verification of the above required documentation, the Administrative Reserve Bank will notify the agent of the customer identification number (CIN) assigned to the excess balance account and the effective date for the excess balance account.
5. The agent will also need to complete and submit the Fedwire^® Funds Service Authorization Form (PDF) for the assigned excess balance account CIN to designate a list of individuals authorized to process off-line transfers. Testing will be required if agent plans on using FedLine Direct for initiating wires from the excess balance account.
6. If a participant chooses to discontinue its involvement in an excess balance account, Appendix B (PDF) of the Excess Balance Account Agreement should be completed and submitted by the participant to the agent's Administrative Reserve Bank to express such revocation.

Questions?

Please contact your Excess Balance Account District Contact with questions or for assistance with excess balance account setup.

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