FDIC-Insured Sweep Accounts

For clients who like to keep high cash balances, a convenient new program may make it easier to diversify that cash into different FDIC-insured bank accounts and track it all on one statement. Broker/dealers who are clients of Fidelity’s National Financial will now be able to sweep their client’s cash balances into one or all of eight bank-deposit programs that are FDIC-insured. These deposits–insured for up to $250,000 per bank–will allow clients to have up to $2 million covered, in all, in the interest-paying accounts, according to an October 13 announcement.

Independent broker/dealer Commonwealth Financial Network is offering the program to individual investors who are clients of Commonwealth’s affiliated brokers. Wayne Bloom, CEO, Commonwealth Financial Network, said in the release that, “Through National Financial’s new program, we are able to offer a short-term investment solution that carries the safety of FDIC insurance as well as liquidity for our financial advisors’ clients.”