Subaccount

A subaccount is the record of a subset of transactions that affect a Federal Reserve Bank master account. Subaccounts do not contain opening and closing balances, but will provide totals of debit and credit activity. Subaccounts are identified by nine-digit Routing Transit Numbers (RTNs), or, in some cases, by Customer Identification Numbers (CINs) assigned by the Federal Reserve Banks. You may use subaccounts to segregate information on the transactions settling in your master account, for reconcilement, or for other account management purposes.

Subaccounts are modeled after existing respondent/correspondent settlement relationships, which allow a depository institution (a respondent) to settle its non-Fedwire® Services transactions, such as cash letters, cash and ACH, in an account held by another institution (a correspondent). Thus, as with respondent/correspondent relationships, transactions initiated by an institution using its subaccount RTN will settle in its master account. However, there is an important distinction between respondent and subaccount settlement relationships in that subaccounts can be used to send and receive Fedwire funds transfers whereas respondent settlement relationships cannot. Also, you cannot use a subaccount to initiate book-entry securities transactions.

The Federal Reserve Banks do not restrict the number of subaccounts your institution may hold and do not charge a fee for using subaccounts. However, beyond a certain number of subaccounts, you may find that the incremental complexity of reconciling subaccount data outweighs the benefits of the additional transaction information. If you already have capabilities to segregate account information, such as systems that automatically reconcile your accounting files with ours, you may not need subaccounts. Accounting staff at your local Reserve Bank can assist you in determining the optimal structure for your account relationship and whether or not subaccounts are necessary to meet your information and settlement needs.

If your organization holds the subaccount, you will need to complete the following forms in Step 7 - Complete Forms/Agreements.

  • Form 1 - Statement of Subaccount Activity
  • Form 2 - Statement of Service Charges
  • Form 3 - Electronic Notification of Selected Transactions
  • Form 4a - Cash Management Basic Services
  • Form 4b - Search Results in a Spreadsheet Format
  • Form 5 - Master Account View: Inquiry and Account Management Information (AMI)

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