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Cash Sweep Program

Cash Sweep Features

There are two sweep features for clients to earn income on uninvested cash balances in their account – the Bank Deposit Sweep (3 unique Programs) and the Money Market Fund Sweep. Eligibility is based on the type of investment account and nature of account ownership.

How the Bank Deposit Sweep Program works

Your available cash — including deposits, dividends, interest and proceeds from sales in your brokerage account — will be automatically deposited into interest-bearing deposit accounts at multiple banks, providing FDIC insurance.

With both Standard Bank Deposit Sweep Programs, the more assets you hold with us, the higher your interest rate may be for the cash deposited into the Sweep program. Other benefits include the ability to have up to $2,500,000 FDIC insurance for deposits in your account when deposits are held at all of the participating banks.

The table below provides information about the three Bank Deposit Sweep Programs offered by HD Vest.

FDIC Insurance Coverage for the Bank Deposit Program

Balances in the Bank Deposit Sweep are insured up to $250,000 (or other applicable amounts) per participating bank by the Federal Deposit Insurance Corp. (FDIC) for each category of legal ownership for a total of $2,500,000 in FDIC insurance coverage.

For a list of participating program banks please click on the appropriate link in the table above. Balances in the Bank Deposit Sweep in excess of $2,500,000 will be deposited at an Excess Bank and may not be FDIC insured.

For purposes of calculating FDIC insurance limits, the cash balances in the Bank Deposit Sweep Program at any one of the participating banks will be combined with deposit balances held directly by or indirectly for you at the same bank (including checking accounts, CDs and other deposits in your name or held through an agent or fiduciary in the same capacity) in the same ownership category. You are responsible for monitoring the total amount of all direct or indirect deposits held by you or for you with these banks for purposes of determining the amounts eligible for coverage by FDIC insurance, including deposits in brokerage sweep accounts and/or deposit accounts. The limitations on FDIC coverage apply to your deposits, whether made by you on your own or through the Bank Deposit Sweep Program. To assist with calculating your aggregated deposits and the associated insurance coverage, the FDIC has an Electronic Deposit Insurance Estimator.

For more information on FDIC insurance coverage please click on the appropriate link in the table above to review the applicable Bank Deposit Sweep Program Disclosure.

Features
Standard Program: Natural Persons
Standard Program: Non-Natural Persons
Level Fee Program
Eligibility
All Non-Entity accounts excluding Advisory Discretionary Retirement accounts
All entity accounts, including Corporations, Partnerships, LLCs, etc. (excluding trusts)
All Advisory Discretionary Retirement accounts, including IRA, ROTH, SEP and SIMPLE
Interest Rate
Banks in Program
Multiple banks per geographical region to insure up to $2.5 million of client funds for Individual accounts and $5.0 million for Joint accounts.
Click here for the Standard Program – Natural Persons Bank List.
Multiple banks per geographical region to insure up to $2.5 million of client funds for Individual accounts and $5.0 million for Joint accounts.
Click here for the Standard Program – Non-Natural Persons Bank List.
Multiple banks per geographical region to insure up to $2.5 million of client funds for Individual accounts and $5.0 million for Joint accounts.
Click here for the Level Fee Program Bank List.

Money Market Fund Sweep

Your available cash — including deposits, dividends, interest and proceeds from sales in your brokerage account — will be automatically invested into a money market fund.

Money market funds are sold by prospectus. Please consider the investment objectives, risks, charges and expenses carefully before investing. The prospectus, which contains this and other information, can be obtained by calling your HD Vest Advisor. Read it carefully before you invest.

The Money Market Sweep is protected by SIPC. Questions regarding SIPC coverage should be directed to the Securities Investor Protection Corporation.

An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at one dollar per share, it is possible to lose money by investing in the fund.

Note: To learn more about these sweep features or alternatives, please contact your HD Vest Advisor.