Yes, our DP CASH PLUS product pays a higher rate of return than our Cash Sweep Program.
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. Cash from your brokerage account deposited through the Program is placed by us at Program Banks ("Deposits"). 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 and they may decrease in value. Amounts in the Program are not covered by SIPC insurance.
Deposits are insured by the FDIC up to the FDIC's insurance limit, which is $250,000 per account ownership category (e.g., individual account, joint account, etc.), including principal and accrued interest when aggregated with all other deposits held in the same ownership category at each Program Bank. For 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). You are responsible for monitoring the total amount of Deposits you have with each Program Bank to determine the FDIC insurance coverage available to you. You can instruct us to exclude one or more Program Banks from receiving Deposits. For more information, visit the FDIC's website at www.fdic.gov/deposit/deposits or call the FDIC directly at 1-877-ASKFDIC (1-877-275-3342). You can also refer to the FDIC's electronic Deposit Insurance Estimator (EDIE) at www.fdic.gov/edie.
Our ability to place Deposits is also subject to limitations set between the Program Banks and ourselves, which may cause Deposits to exceed the potential FDIC insurance coverage described above. If we have reached our limit at one or more of the Program Banks, we cannot place additional cash with those Program Bank(s). Therefore, this may impact the amount of potential FDIC insurance coverage available to you because there are fewer Program Banks at which your cash can be placed through the Program. If deposits exceed the FDIC insurance limit available across all of our Program Banks, we may place the cash, at our discretion, at a single Program Bank, allocated across several Program Banks, or it may be held as free credits with us in your brokerage account. To the extent some or all of the cash is held as free credits in your brokerage account, it would be subject to SIPC coverage to the extent permitted.
Additional information about how we hold your funds and securities can be found here.
If deposits exceed the FDIC insurance limit available across all our Program Banks, the uninsured amount would be placed, at our discretion, in a single Program Bank, allocated across several Program Banks, or held as free credits with us in your brokerage account. To the extent some or all of the cash is held as free credits in your brokerage account, it would be subject to SIPC coverage to the extent permitted.
Please also see the FAQ above for an explanation of FDIC insurance coverage available through the Program.
We act as your agent with the Program Banks.
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 Program 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 Cash Sweep Program on a daily basis. If you wish to invest in the DP CASH or DP CASH PLUS offerings, then you buy or sell that offering as if it were a stock or a fund.
No. There is no minimum balance required for the Cash Sweep Program. 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 Program 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 Program 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 Program Banks on our website.
Yes. We can add and remove Program Banks.
No. You may opt out of participating in the Program by contacting our customer service department. If you opt out of the Program, the cash held in your account will be held by us as free credit balances and protected by SIPC, subject to SIPC coverage limitations. Explanatory brochures further detailing SIPC coverage are available upon request or at www.sipc.org.
Yes. You may wish to eliminate any Program Bank with which you already have an account, if the combined total you have in that Program Bank and with us would exceed $250,000 ($250,000 for retirement accounts). You are responsible for monitoring this list. To eliminate a specific Program Bank, simply contact our customer service department.