Yes, our FDIC.PLUS product pays a higher rate of return than our FDIC Sweep Product.
All Banks in our Program are depository institutions duly chartered under the laws of the United States or a State thereof, the deposits of which are insured by the FDIC. We are a broker-dealer registered with the Securities and Exchange Commission and a member of FINRA. We are not a bank. All amounts deposited through the Program are held by the respective Banks, not by us. Securities and other assets held in your brokerage account are not a deposit or other obligation issued or guaranteed by any bank nor are they insured by the FDIC. Amounts in the Program are not covered by SIPC insurance.
All cash deposits in the Banks, by account ownership category as recognized by the FDIC, are covered by insurance from the FDIC up to certain amounts. Generally, the FDIC provides insurance to a maximum of $250,000 per account ownership category, aggregated across all deposits held by you in the same account ownership category at the same bank (e.g., an individual account is a separate ownership category from a joint account). As an example, if you had one account in each of the individual and joint account ownership categories at the same bank, you would have a maximum of $500,000 in FDIC insurance coverage, computed as $250,000 for the first account ownership category (i.e., individual) and $250,000 for the second account ownership category (i.e., joint). The current FDIC recognized account ownership categories are listed on the FDIC?s website (www.fdic.gov) and may change from time to time.
Additional information about how we hold your funds and securities can be found here.
If you have a cash balance greater than the FDIC coverage in effect at any time, then that excess amount will not be insured. We will, however, place the excess amount in a single bank, or pro-rate the excess across several banks in the Program.
We act as your agent with the Banks in the Program.
No. There are currently no specific fees, such as commissions, for participating in the Program. However, we make money from the Program based, for example, on the difference in the rates paid by the Banks on cash invested in the Program and the amount that is paid to you under the Program, which can be viewed as a "fee."
All accounts that you have with us are eligible for the Program.
Any available cash you have will be swept into the Program on a daily basis. If you wish to invest in the FDIC.PLUS offering, then you buy or sell that offering as if it were a stock or a fund.
No. There is no minimum balance required. Higher balances, of course, earn higher interest rates.
Yes. You have same or next-day access to your funds without penalties.
No. We maintain only one sweep option.
Current rate information can be found on our website, and the rate you actually earned is listed on your month-end statements.
There is a separate line item in the account summary that lists the balance in the IDCSA with the notation that this money is protected by FDIC insurance, but not SIPC insurance and the rate you earned. There is also a section indicating the names of the Banks to which your money was allocated as of the end of the statement period.
As ordinary income.
Yes, the client agreement reflects the Program. Please refer to our website (Login page) to view the current agreement and terms and conditions.
No. You do not receive a passbook or certificate. Evidence of your ownership is reflected in our books and records as the agent and, therefore, on the statement you receive.
Please see the Banks on our website.
Yes. We can add and remove Banks from the Program.
Yes. You may wish to eliminate any bank with which you already have an account, if the combined total you have in that bank and with us would exceed $250,000 ($250,000 for retirement accounts). You are responsible for monitoring this list. To eliminate a specific bank, simply contact our customer service department.