The Insured Sweep Account offers you a unique opportunity to enjoy the safety of millions of dollars in FDIC insurance, earn interest regardless of account type, and consolidate multiple bank relationships into a single, comprehensive cash management account. Whether you are seeking to insure your cash for your family, your business, or public funds, no other account offers you more flexibility than the Insured Sweep Account.
Individuals—Through a single account, you receive millions of dollars in FDIC insurance to protect your retirement, college savings, vacation fund, or rainy day cash. Joint accounts receive double the current expanded FDIC insurance limit!
Businesses—Receive millions in FDIC insurance while earning interest through one convenient account. Enjoy having no withdrawal limitations on your account plus the convenience of a fully automated cash management solution, which eliminates the need to scramble to transfer money from one account to another to meet your businesses’ daily liability and accounts payable needs.
Public Funds—We understand how labor intensive and time consuming it is to maintain your public funds account, and the need to keep these funds protected as required by state mandate. This fully automated cash management account ensures your money is available when needed and provides the high levels of insurance coverage to meet your investment policy needs.
How It Works
Charter Bank participates in a program with other community banks where customer deposits within the Insured Sweep Account, in excess of the $250,000 FDIC insurance limit per account registration, is automatically allocated to other FDIC insured accounts held at other banks in the program. This unique technology enables you to receive millions of dollars in FDIC insurance while having access to all of your cash on a daily basis!
A customer of [Bank Name] opens an [FDIC Insurance Account Name] with $1 million:
- First $250,000 is allocated to [Bank Name]
- Next $250,000 is allocated to another bank in the network
- Next $250,000 is allocated to a third bank in the network
- Next $250,000 is allocated to a fourth bank in the network
Any amount greater than the $1 million—due to interest earned or deposits made into the account—will automatically be allocated to the next bank in the program to ensure that the customer is fully insured up to his/her deposit balance or the account maximum, whichever is less. Regardless of how many banks are utilized, your money is available on a daily basis through your checks, debit card, or transfers.
The Insured Sweep Account is easy to understand, is an ideal solution to meet your unique cash needs in an ever-changing market environment, and best of all, the few minutes it takes to open the account will save you countless hours of paperwork every month—hours you could be spending with your family or growing your business.
Funds participating in the Insured Sweep Account are deposited through the Demand Deposit MarketplaceSM program into deposit accounts at participating banks, which are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 for each category of legal ownership, including any other balances you may hold directly or through other intermediaries, including broker-dealers. The total amount of FDIC insurance for your account depends on the number of banks in the program. If the balance in your account is greater than the FDIC insurance coverage in the program, any excess funds will not be insured. Please read the Program Terms and Conditions carefully before depositing money into the program and for other important customer disclosures and information. To assure your FDIC coverage, please regularly review banks in which your funds have been deposited, and notify your bank immediately if you do not want to allocate funds to a particular bank or banks. “Demand Deposit Marketplace” is a service mark of Reich & Tang Deposit Networks, LLC.