Institution and Account Classifications

Financial institutions may be classified as Collectors, Retainers, or Investors.

Collector Institution

These financial institutions accept electronic and/or paper tax payments from corporate customers. The dollar amount of paper tax deposits collected by the financial institutions is withdrawn from the financial institution's Reserve account for deposit to the Treasury's account on the business day that the Federal Reserve receives Advice of Credit (AOC) information supporting the deposits. A Collector institution must fully collateralize all in-transit paper tax deposits that are in excess of recognized insurance coverage on the date the taxes are received.

Retainer Institution

A Retainer institution accepts electronic and/or paper tax payments from its corporate customers and retains the tax deposits in its Treasury Investment Program (TIP) Main Account depending on the balance limit and collateral value. All funds in a Retainer's Main Account must be fully collateralized. The financial institution pays the Treasury interest for use of the funds.

Investor Institution

An Investor institution accepts electronic and/or paper tax payments from its corporate customers. Investors retain the tax deposits depending on the balance limit and collateral value. In addition, Investors accept additional investments from the Treasury, such as Direct Investments, Dynamic Investments, and Special Direct Investments. All funds in an Investors Main Account must be fully collateralized. The financial institution pays the Treasury interest for use of the funds.

Retainer and Investor financial institutions are divided into three different classifications – A, B, or C – according to the institution's total Federal Reserve Treasury Tax & Loan (TT&L) deposits during the preceding calendar year, its total deposit liability (both demand and time) as of September 30 of the previous year, and the investment amount a depository is willing to accept (balance limit).

Account Types

There two types of accounts within the TT&L Program.

Main Account

A Main account is established for financial institutions that participate in TT&L and retain federal tax payments collected from their corporate customers. In addition, this account is used for financial institutions that choose to receive funds from the Treasury’s Direct or Dynamic Investments.

Special Direct Investment Account

Financial institutions that participate in the Direct Investment program can elect to receive Special Direct Investments (SDI).

As a TT&L depository a financial institutions may monitor its Main and Special Direct Investment account through the Account Status page available in TT&L Plus.

Top of Page