Current Insurance Coverage for Your Cash
We offer extended FDIC insurance for both principal and accrued interest for money held in the banks in our Sweep Program.
- Up to $3.75 million for individual accounts
- Up to $7.50 million for joint accounts under the same social security number (SSN)
The total balance in all retirement accounts and the total balance in non-retirement accounts are insured separately and are not aggregated together for purposes of insurance coverage calculations.
Our Sweep Program
All cash not invested in securities is automatically included in the Sweep Program and will either be swept into FDIC-insured banks participating in our Sweep Program (“Banks”) or held by us and protected by SIPC-insurance.
You have same or next-day access to your funds without penalties, unlike CDs.
Using Cash in Your Folios
Incorporate cash into your folios by using the security symbol FDIC.CASH. Cash in a folio earns the same interest rate as cash held in the Sweep Program, but cannot be used to cover new purchases, checks, or electronic funds transfers (EFTs). To use cash held as FDIC.CASH in such transactions, you must first sell the amount that you wish to use from the security symbol FDIC.CASH to move it out of your folio. It will then be available for your use, and automatically moved into the Sweep Program at the end of each day.
Cash held in a folio can be given a weight just like any other security in a folio. For example, if you want to hold 10% of your folio in cash, simply buy the security symbol FDIC.CASH and set the weight to 10%.
Higher Yielding Cash Investment
We also have an optional cash investment product—FDIC.PLUS—that usually pays a higher interest amount than FDIC.CASH. FDIC.PLUS is designed for investors who want higher interest rates on larger amounts of cash, with complete safety of capital, and easy next-day access to funds. There is a $25,000 minimum investment to earn interest in this higher-yielding cash investment. Balances below $25,000 do not pay interest. FDIC.PLUS is held in non-folio holdings.
- Cash investments are commission-free.
- Rates automatically adjust depending on the balance in the investment.
- Cash rates and tiers can change at any time without notice based on current market conditions.
- Interest is calculated daily and posted to your accounts monthly.
- All deposits or withdrawals from FDIC.CASH will appear in folio holdings, statements, and confirmations. Deposits and withdrawals from FDIC.PLUS will appear in non-folio holdings.
- Deposits into FDIC.CASH or FDIC.PLUS made by 2:00 p.m. ET on a business day will generally begin accruing interest on the following business day. Deposits made after that time on a business day will generally begin accruing interest on the second business day.
- Cash held in our Sweep Program or as FDIC.CASH and FDIC.PLUS is aggregated for FDIC insurance purposes, and held either in FDIC-insured banks participating in our Sweep Program (“Banks”) or held by us under the Sweep Program where it is protected by SIPC-insurance. However, to determine interest rates or tiers, FDIC.PLUS deposits stand alone and are not aggregated with any other cash holdings in a customer account.
- Funds held in FDIC.CASH and FDIC.PLUS are not available for check writing, withdrawals, or EFTs. Those funds must be held in the Sweep Program to be eligible for new purchases, check writing, withdrawals and EFTs. Consequently, you will need to sell FDIC.CASH or FDIC.PLUS to move the cash into the Sweep Program the business day before those funds can be used for these purposes.
- See the terms and conditions of the Customer Agreement relating to the Sweep Program for additional information.