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An Insured Cash Sweep account gives you access to FDIC insurance on deposit balances exceeding $250,000 through partnerships between your bank and hundreds of others across the country. These accounts earn interest and are available for both personal banking and business accounts.
Under the Program, the Cash Balance in your Fidelity Cash Management Account is automatically swept into and out of an interest-bearing Program Deposit Account at one or more Program Banks with which Fidelity has contracted. The Sweep should not be viewed as a long-term investment option.
A sweep account generally does not hold money itself; it just sweeps funds from one account to another. So a sweep account itself will not lose money, though it is possible to lose money, depending on where you sweep the money to.
What is an FDIC insured sweep program? An insured deposit program, also known as an FDIC sweep program, enables bank customers to earn interest on idle cash balances, while providing banks an attractive, more diversified source of funding and liquidity.
Your Money is Secure Since any money in a Commercial Sweep Account is invested in bank-held securities, and is not in your bank account, those funds will be safe if your bank goes under.
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Why Are Sweep Accounts Useful? Sweep accounts, whether for business or personal use, are an easy way to ensure that money is earning a return rather than sitting in a low-interest bank account.
*Bank Sweep program balances are held at one or more Program Banks, earn a variable rate of interest, and are not covered by SIPC. You are solely responsible for monitoring the aggregate amount that you have on deposit at each Program Bank in connection with FDIC limits, including through other accounts at VBS.
Insured Cash Sweep (ICS) accounts leverage a network of banks to provide extra Federal Deposit Insurance Corp. coverage for your deposits. Rather than the standard $250,000 per depositor, per institution offered by the FDIC, ICS accounts can protect millions of dollars.

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