Insured Deposit Program
Is your cash being put to the best possible use? The Insured Deposit Program (IDP) puts your cash to work, earning competitive rates of return1 while providing protection of FDIC insurance.
How it Works
The uninvested cash in your brokerage account is swept into the Insured Deposit Program each day and allocated to a network of deposit banks in a manner intended to provide up to $2.5 million in FDIC insurance coverage on your program balances, per eligible account type as recognized by the FDIC.
While in the program, your cash earns interest daily and is automatically reinvested monthly. Use your brokerage account statements to obtain information on your balance in the program.
If and when cash is needed in your brokerage account, it’s easily available – with no redemption fees.
Program Advantages
Daily Liquidity
Allows you access to your cash in the program when you need it.1 There is no risk of redemption fees or price volatility from VNAVs.
FDIC Insurance
Covers your balances in the program up to $2.5 million.
Simple to Manage
Fully integrated into your brokerage account with no minimum investment.
Competitive Returns
Earn competitive returns, comparable to certain government and treasury money market sweep funds. Rates may be affected by changes in economic conditions.2
1While interest rates obtained on funds placed at receiving institutions under the Insured Deposit Program may, under certain circumstances, outperform cash alternatives, such as money market funds, the primary objective of the Liquid Insured Deposits program is to provide customers with convenient access to expanded deposit insurance coverage on their funds (and not for investment enhancements or higher rates of returns or profits).
2Under the Insured Deposit Program, funds are deposited into demand deposit accounts (DDAs) or money market deposit accounts (MMDAs) at receiving banks or share draft accounts or share accounts at receiving credit unions. While your customers’ funds are held in MMDAs or share accounts, the return of your customers’ funds from the Liquid Insured Deposits program may be delayed as, under federal regulations, the receiving institution is permitted to impose a delay of up to seven days on any withdrawal request from an MMDA or share account.