The excess coverage would only be used when SIPC coverage is exhausted. In addition to SIPC protection, Fidelity provides its brokerage customers with additional "excess of SIPC" coverage through Lloyd's of London. Learn more about SIPC coverage at Excess of SIPC This includes money market funds held in a brokerage account since they are considered securities. What Fidelity accounts are covered?Īll Fidelity brokerage accounts are covered by SIPC. The SIPC will cover up to $500,000 in securities, including a $250,000 limit for cash held in a brokerage account. The Securities Investor Protection Corporation (SIPC) is a nonprofit organization that protects stocks, bonds, and other securities in case a brokerage firm goes bankrupt and assets are missing. Please see the FDIC Insured Deposit Sweep Program Disclosure for more details. Once your funds are placed in the Money Market Overflow fund, these funds will be the first funds that are used to settle any debits to your account. This component provides for cash balances that are either greater than the FDIC Insured Deposit Sweep Program can place at the participating banks or exceed FDIC insurance limits, excess funds will be swept to the Fidelity Government Money Market Fund – Class S ( ) , also referred to as the Money Market Overflow fund. The Money Market Mutual Fund Overflow component ("Money Market Overflow") of the FDIC Insured Deposit Sweep program, was added to the Program for deposit amounts in excess of FDIC insurance limits and/or Program limits. If a subsequent deposit of $50,000 is made, that will be deposited into that same third program bank. Any deposits over $245,000 will be systematically distributed across multiple available program banks.įor example, if $500,000 is deposited, $245,000 will be swept into each of the first two available program banks and the remaining $10,000 will be swept into a third. How the Program worksįidelity automatically performs all transfers between your account and the program banks and provides anytime access to view the amount of cash at each program bank via .Įach program bank will receive a maximum of $245,000 to help ensure that any accrued interest is also eligible for FDIC insurance (which has a $250,000 coverage limit). Please note that these lists may change over time as program banks are added or removed.
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