What rate do I pay and/or earn in the network?

Sweep: Credit unions can sweep member funds into the ModernFi Network to offer extended insurance to members in addition to sweeping off undeployed excess deposits to improve capital ratios, return on assets and income, while ensuring the credit union remains below regulatory thresholds.

• Rate: Credit unions earn the network rate (typically around effective federal funds rate) on any deposits swept into the network from institutions receiving those funds, minus the ModernFi usage fee. Your institution has full control over how much rate to pass on to members in the program.
• Example: When the network rate they earn is effective federal funds rate (4.33% as of February 11, 2025), and your credit union offers 1% interest rate (illustrative) on the Extended Insurance Account, you will earn 3.33% on deposits in network minus ModernFi fees.

Receive: Credit unions can source stable, cost-effective funding on demand from credit unions in the ModernFi Network. This can help boost liquidity and fuel asset origination.

• Rate: Credit unions pay the network rate (typically around effective fed funds) on funds received. Interest is accrued daily and paid monthly. There are no ModernFi fees associated with receiving funds.
• Example: If the network rate is 4.33%, your institution will pay the network rate on funds received for the number of days on your balance sheet.

Reciprocate: Credit unions may also reciprocate – both sweeping and receiving funds simultaneously – to offer extended insurance to their members without affecting their overall balance sheet size.

• Rate: When you reciprocate by sweeping the same amount of funds you receive back to your credit union, the network rate offsets itself, leaving only the ModernFi usage fee. Your institution has full discretion on how much rate to pass on to members in the program.
• Reciprocating Volume: The credit union has the ability to 1) reciprocate the full amount swept into the network to maintain balance sheet size, 2) reciprocate less than the full amount swept into the network to reduce balance sheet size and earn additional fee income or 3). Reciprocate more than the full amount swept in network to grow the size of the balance sheet

For more information on setting rates for your members, click here, and for details on interest payment and monthly settlement, click here.