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 return 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 ($5 million for joint accounts).
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. 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 ($5 million for joint accounts)
Simple to Manage
Fully integrated into your brokerage account with no minimum investment.
Safety and Diversification of Funds
The program selects banks using TBS Bank Monitor, which uses key financial indicators intended to gauge safety and soundness.
Competitive Returns
Earn competitive returns, comparable to certain government and treasury money market sweep funds. Rates may be affected by changes in economic conditions.