Pershing Frequently Asked Questions


The following Frequently Asked Questions are provided to inform you regarding the Insured Cash Account Program for fee-based retirement accounts held at our clearing firm, Pershing LLC, A Bank of New York Mellon company. For complete information about the Insured Cash Account Program, please review the Client Disclosure Document located at

What is the Insured Cash Account Program?

The Insured Cash Account Program is a core account investment vehicle for fee-based retirement accounts used to hold cash balances while awaiting reinvestment. The cash balance in fee-based retirement accounts will be automatically deposited or “swept” into an interest- bearing account.

What are the key features of the Insured Cash Account Sweep Program?

The program, for eligible fee-based retirement accounts, currently provides up to $2.5 million in maximum cumulative FDIC coverage with deposits held at a network of multiple banks.

How do clients participate in the Insured Cash Account Program?

Our Disclosure Document reflects the Insured Cash Account Program as the core account investment vehicle available to eligible accounts. Current information is also posted in the Investors section of our public website

What is the difference between coverage provided by FDIC and SIPC?

SIPC provides protection from insolvency of a broker/dealer while funds are held by Securities America, Inc. at either National Financial or Pershing. FDIC provides protection of principal and interest while funds are held in the bank deposit account. Further description of FDIC coverage is available at

How much FDIC Protection is provided?

Eligible fee-based retirement accounts will receive up to $2.5 million in maximum cumulative FDIC coverage with deposits held at a network of multiple banks. Funds will be swept into deposit accounts at a program bank up to a maximum amount. Funds in excess of that maximum amount will be swept into the next successive bank on the program bank List. Once the client’s total amount of funds deposited through the program in all banks on the program bank list reaches $2.5 million, any additional funds in the account will be swept into an “Excess Deposit Bank” without regard to FDIC insurance limitations. Funds invested in the Excess Deposit Bank that exceed the maximum amount will not covered by FDIC Deposit Insurance.

If a client designates more than three banks on the program bank list as ineligible to receive funds, or maintains deposits outside of the program at a program bank, the total amount of FDIC insurance for which their cash balances are eligible in the program may be reduced.

With the exception of the Excess Deposit Bank, cash balances are not swept into a deposit account at a program bank in an amount that exceeds the maximum amount of $2.5 million.

Is cash really safer in an FDIC sweep like the Insured Cash Account Program than in a money fund sweep?

The Insured Cash Account Program uses an insured bank deposit account. This means that eligible deposits, up to the FDIC maximum, held at the program bank cannot lose principal or interest. It also means that, in the event of a bank failure, clients will be paid promptly, usually within a few weeks after the FDIC takes over a failed bank. Money market funds can lose value, and have in the past. Some money market funds have suspended the ability of their customers to take their money out of the fund (redeem) for several months. The potential loss of principal is called the “safety factor” and how long it takes to get money in an emergency is called the “liquidity factor.” Both of these and two other important factors (rate and convenience) should be considered when comparing money market funds and the Insured Cash Account Program.

What can you tell me about the banks in the program?

Banks in the network program are selected based on initial and ongoing review of their strength as documented by the FDIC.

Which banks on the program bank list apply to my account(s)?

Appendix A in the Insured Cash Account Program Disclosure Document contains a list of the program banks. On our public website, this is referred to as the Program Bank List. You may also contact your financial professional for the Program Bank List and priority sequence order.

How do Insured Cash Account Program rates compare to bank checking and savings rates?

Account holders may be paid more than some banks pay for checking and savings account balances that do not have minimum balance requirements. There can be exceptions, however, but rates offered under this program can be more competitive than those offered by large national banks. Keep in mind that making these comparisons can be difficult because there is much more involved than just the rate paid.

How do the Insured Cash Account Program rates compare to other broker-dealer rates? Not all broker-dealers offer insured bank deposit sweep vehicles or have the same access and convenience features. Compared to broker-dealers that do offer a similar product, the rates offered by the Insured Cash Account Program are competitive.

Where can I get additional information about rates or Insured Cash Account Program?

Contact your financial professional to get additional information or contact Securities America, Inc..

For complete information about our Insured Cash Account Program, please review the Insured Cash Account Program Disclosure Document located in the Investors section of

Mutual funds are investments involving risk and are offered by prospectus only. Investment return and principal value will fluctuate so that upon redemption an investor's shares may be worth more or less than original value. An investor should carefully consider the investment objectives, risks, charges and expenses before investing. The fund prospectus contains this and other information about the investment company. For a copy of the prospectus, please contact your financial professional. Read the prospectus carefully before investing or sending money.

An investment in a money market fund is not FDIC insured or guaranteed by any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.