Browse Prior Art Database

Federated Financial Account

IP.com Disclosure Number: IPCOM000132021D
Original Publication Date: 2005-Nov-29
Included in the Prior Art Database: 2005-Nov-29
Document File: 3 page(s) / 61K

Publishing Venue

IBM

Abstract

A federated account that links some number of financial accounts, using rules to dictate which subaccount funds are transfered to and from.

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Federated Financial Account

Disclosed is a Federated financial account that logically links some number of financial accounts together. Bank accounts, credit cards, HELOCs or any other kind of financial account can be subaccounts. One pays bills from the aggregated account, whether by check, fund transfer or a credit/debit card. The account holder creates business rules in the aggregated account to dictate which subaccount the funds are actually pulled from to pay each transaction. By creating a single gateway for dealing with the financial accounts, there is added convenience for reviewing finances and doing taxes without having to keep track of everything separately.

The account holder creates rules on the account using some number of inputs that could include, but is not limited to: current balances in the subaccounts the amount of the transaction the date of the transaction the method of payment current interest rates on subaccounts, whether it is interest earned or charged the specific vender for that transaction the vendor type

Using a combination of inputs, a rule determines which account(s) to draw funds from to satisfy the debt. An example of the simplest form is to have a rule that uses Bank Account #1 for all charges until it the balance would become lower than $300, at which point it would pull funds from Bank Account #2.

Other benefits provided by having the virtual account include:

Having a common group of services across all of the subaccounts. For instance, you can provide overdraft protection on any of the subaccounts, whether that account had its own protection or not.

It can greatly reduce use of checking accounts as the Virtual account could transfer what is needed from another account for a fund transfer. As it is, account holders often lose interest income from keeping larger balances than are strictly necessary in low or no interest checking accounts to buffer against overdraft.

Rules could also be used to warn the account holder of problems that will or have already occurred. For in...