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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.

Each Bank will pay FSC a fee equal to a percentage of the average daily deposit balance in your Deposit Accounts at the Bank. The fee paid to FSC may be an annual rate of up to 200 basis points on the Bank's Deposit Accounts. FSC may waive any part of this fee at any time. Depending on the prevailing interest rate environment at a particular time, the fees paid by the Bank may be more or less than the interest the Bank pays on your deposit accounts. The fees FSC receives from the Bank may be greater than the fees FSC receives from other sweep investment options. The fee FSC receives may differ among Banks depending on the interest rate environment and/or any fee reductions made by FSC. The amount of fee received or waived by FSC will affect the interest rate paid by the Bank on your deposit accounts. FSC advisors do not receive any of the fees received by FSC from the Banks. Upon request, FSC will provide you with information concerning the fees it receives in connection with the Insured Deposit Program.

 

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)

Region 1:
(AL, AR, IA, KS, KY, LA, MS, MO, NE, OK, TN)

  1. American Express Centurion Bank
  2. Bank of North Carolina
  3. Capital One Bank (USA), N.A.
  4. Union Bank & Trust
  5. SunTrust Bank
  6. Bank of East Asia
  7. First State Bank
  8. EagleBank
  9. New York Community Bank
  10. Morgan Stanley Bank, N.A.
  11. Monarch Bank
  12. Union Bank, N.A.
  13. First County Bank
  14. First Niagara Bank
  15. Bryn Mawr Trust Co.

Excess Bank List
Morgan Stanley Bank, N.A.
Capital One Bank (USA), N.A.
American Express Centurion Bank

Region 2:
(IL, IN, MI, OH, WI)

  1. Capital One Bank (USA), N.A.
  2. American Express Centurion Bank
  3. Bank of North Carolina
  4. Bryn Mawr Trust Co.
  5. Bank of East Asia
  6. First Niagara Bank
  7. EagleBank
  8. Union Bank & Trust
  9. New York Community Bank
  10. SunTrust Bank
  11. First State Bank
  12. Union Bank, N.A.
  13. Monarch Bank
  14. Morgan Stanley Bank, N.A.
  15. First County Bank

Excess Bank List
Morgan Stanley Bank, N.A.
Capital One Bank (USA), N.A.
American Express Centurion Bank

Region 3:
(DE, MD, NJ, PA, DC)

  1. Capital One Bank (USA), N.A.
  2. American Express Centurion Bank
  3. Union Bank & Trust
  4. Bryn Mawr Trust Co.
  5. Bank of North Carolina
  6. SunTrust Bank
  7. New York Community Bank
  8. Bank of East Asia
  9. Union Bank, N.A.
  10. EagleBank
  11. First Niagara Bank
  12. Morgan Stanley Bank, N.A.
  13. First State Bank
  14. Monarch Bank
  15. First County Bank

Excess Bank List
Morgan Stanley Bank, N.A.
Capital One Bank (USA), N.A.
American Express Centurion Bank

Region 4:
(AK, CO, ID, MN, MT, ND, OR, SD, WA, WY)

  1. American Express Centurion Bank
  2. Capital One Bank (USA), N.A.
  3. Union Bank & Trust
  4. Bank of North Carolina
  5. Morgan Stanley Bank, N.A.
  6. SunTrust Bank
  7. Bank of East Asia
  8. First State Bank
  9. EagleBank
  10. Bryn Mawr Trust Co.
  11. New York Community Bank
  12. First Niagara Bank
  13. Monarch Bank
  14. Union Bank, N.A.
  15. First County Bank

Excess Bank List
Morgan Stanley Bank, N.A.
Capital One Bank (USA), N.A.
American Express Centurion Bank

Region 5:
(CT, MA, ME, NH, NY, RI, VT)

  1. American Express Centurion Bank
  2. Capital One Bank (USA), N.A.
  3. Bank of North Carolina
  4. SunTrust Bank
  5. New York Community Bank
  6. Morgan Stanley Bank, N.A.
  7. Union Bank, N.A.
  8. Bank of East Asia
  9. EagleBank
  10. Monarch Bank
  11. First Niagara Bank
  12. Union Bank & Trust
  13. First State Bank
  14. First County Bank
  15. Bryn Mawr Trust Co.

Excess Bank List
Morgan Stanley Bank, N.A.
Capital One Bank (USA), N.A.
American Express Centurion Bank

Region 6:
(FL, GA, NC, SC, VA, WV)

  1. American Express Centurion Bank
  2. Capital One Bank (USA), N.A.
  3. Morgan Stanley Bank, N.A.
  4. Bryn Mawr Trust Co.
  5. Bank of North Carolina
  6. Union Bank, N.A.
  7. SunTrust Bank
  8. EagleBank
  9. Bank of East Asia
  10. New York Community Bank
  11. Union Bank & Trust
  12. First County Bank
  13. First Niagara Bank
  14. Monarch Bank
  15. First State Bank

Excess Bank List
Morgan Stanley Bank, N.A.
Capital One Bank (USA), N.A.
American Express Centurion Bank

Region 7:
(AZ, NV, NM, TX, UT)

  1. American Express Centurion Bank
  2. Capital One Bank (USA), N.A.
  3. New York Community Bank
  4. Morgan Stanley Bank, N.A.
  5. Union Bank & Trust
  6. Bank of East Asia
  7. Bank of North Carolina
  8. SunTrust Bank
  9. EagleBank
  10. First Niagara Bank
  11. Union Bank, N.A.
  12. First County Bank
  13. Bryn Mawr Trust Co.
  14. First State Bank
  15. Monarch Bank

Excess Bank List
Morgan Stanley Bank, N.A.
Capital One Bank (USA), N.A.
American Express Centurion Bank

Region 8:
(CA, HI, & other territories)

  1. American Express Centurion Bank
  2. Capital One Bank (USA), N.A.
  3. Union Bank & Trust
  4. First County Bank
  5. Bank of North Carolina
  6. SunTrust Bank
  7. EagleBank
  8. First Niagara Bank
  9. Bank of East Asia
  10. New York Community Bank
  11. Morgan Stanley Bank, N.A.
  12. First State Bank
  13. Union Bank, N.A.
  14. Monarch Bank
  15. Bryn Mawr Trust Co.

Excess Bank List
Morgan Stanley Bank, N.A.
Capital One Bank (USA), N.A.
American Express Centurion Bank


 

[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.

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Securities may lose value. Not FDIC/ NCUA insured. Not Bank or Credit Union guaranteed.
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