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Insured Deposit Program
Updated 1/19/12
Welcome to the Insured Deposit Program. Under this program, available cash balances (from security transactions, dividend and interest payments and other activities) in your eligible Pershing, LLC brokerage accounts will automatically be deposited into interest-bearing Federal Deposit Insurance Corporation ("FDIC") insured deposit accounts ("Deposit Accounts") at one or more of the banks set forth below.
Funds in the Deposit Accounts at each Bank are eligible for deposit insurance by the FDIC, up to a total of $250,000 in principal and interest per depositor in most insurable capacities (e.g. individual, joint, etc.)[1] when aggregated with all other deposits held in the same insurable capacity at a Bank. Pershing, LLC, will deposit the available cash in your brokerage account in a Deposit Account at one or more of the Banks listed below, up to $225,000[2] for an individual account, and $450,000 for joint accounts of two or more, irrespective of the capacity in which you hold your brokerage account, and the maximum applicable FDIC insurance coverage available. As your funds will be eligible for up to $2,500,000 for individual accounts or $5,000,000 for joint accounts of total FDIC insurance coverage, subject to applicable limitations. Once $225,000 (or $450,000 for joint accounts of two or more) has been deposited in each of the Banks, any additional funds will be deposited in an "Excess Bank" without limit and without regard to maximum available FDIC insurance coverage.
The interest rates on the Deposit Accounts will vary based upon the total net worth of the assets you maintain in your brokerage account, including cash. Pershing will link your brokerage account to additional brokerage accounts you hold at Pershing registered under the same social security number to determine your Interest Rate Tier. The aggregate assets of all "linked" brokerage accounts is referred to as your "Aggregate Net Worth" or "ANW." In general, clients with greater ANW may receive a higher interest rate than clients with lower ANW. Pershing will determine your ANW as of the interest posting date each month and add it to the ANW as of the interest posting date for the prior month which is then divided by two to determine your average Aggregate Net Worth for the period. This average Aggregate Net Worth will determine your eligibility for a particular Interest Rate Tier for the forthcoming interest period. If there isn't a prior period ANW, then the total amount (not the average) of your ANW will be used to determine your Interest Rate Tier for that initial interest period.
CURRENT TIERS AND RATES
(Last adjusted on 1/19/12)
| Aggregate Net Worth | ||
| Tier | Range | Yield |
| 1 | $0 - $25,000 | 0.03% |
| 2 | $25,001 - $50,000 | 0.03% |
| 3 | $50,001 - $150,000 | 0.03% |
| 4 | $150,001 - $500,000 | 0.03% |
| 5 | $500,001 - $2,500,000 | 0.03% |
| 6 | Over $2,500,000 | 0.03% |
REGIONS: INSURED DEPOSIT PROGRAM BANKS
(Last adjusted on 1/19/12)
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Region 1:
Excess Bank List |
Region 2:
Excess Bank List |
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Region 3:
Excess Bank List |
Region 4:
Excess Bank List |
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Region 5:
Excess Bank List |
Region 6:
Excess Bank List |
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Region 7:
Excess Bank List |
Region 8:
Excess Bank List |
[1] A list of eligible accounts can be located by contacting your Financial Advisor. Certain Corporate and Trusts accounts are NOT considered eligible accounts.
[2] 10% below the published FDIC limit is actually deposited into each bank in order to make sure all interests (as well as the original principal) is fully covered by FDIC Insurance.
RECRUITING HOTLINE866-462-4432 |
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