Are you looking for a better solution for your cash positions?
Safety - Security - Liquidity - Automation
Rest assured that your large deposits are secure. The CSB Sweep Account* ("CSB Sweep") provides you with access to scores of banks that, together, can offer millions of dollars in FDIC insurance coverage, daily liquidity, and a highly attractive yield. The CSB Sweep is an ideal cash sweep option for individuals, businesses, municipalities, and non-profit organizations seeking safety with the potential for competitive yield while decreasing overall portfolio risk.
- Cash is available daily.
- Millions in FDIC Insurance eliminates the risks associated with money fund investing.
- Funds are always accessible with no penalties or restrictions on the number of monthly withdrawals.
- Avoid the burden of dealing with numerous bank relationships and benefit from a high level of FDIC insurance through a single contact point.
- Access DepositViewSM, an online portal that enables you to view all banks in which your deposit balances are held.
What is the CSB Sweep Account?
CSB Sweep is a liquid FDIC insured alternative to money market mutual funds. It enables customers of financial institutions participating in the CSB Sweep to obtain millions of dollars of FDIC insurance with daily liquidity and potentially higher returns.
How is the CSB Sweep different from a money market mutual fund sweep?
Unlike CSB Sweep, money market mutual funds are not FDIC insured. Operationally the CSB Sweep works similarly to a money market mutual fund sweep however, excess deposits are swept into insured accounts held at several FDIC insured program banks instead of pooled money fund investments. CSB Sweep Accounts may be subject to account analysis.
What are the advantages of an FDIC insured account versus a money market mutual fund?
- Provides the safety and explicit guarantee of FDIC insurance backed by the full faith and credit of the US Government that money funds do not offer;
- Eliminates market risks associated with money fund investing;
- Offers a highly competitive yield.
Can placing funds in the CSB Sweep decrease my overall portfolio risk?
Yes. FDIC insured placements eliminate the market risks associated with money market mutual fund investing and other direct cash instruments.
What is the FDIC insurance limit in the account?
Joint accounts receive up to $60 million in FDIC insurance and all other account types receive up to $30 million per TIN (tax identification number). However, individuals in different categories of legal ownership may receive higher amounts.
How are high levels of FDIC insurance achieved?
Cash balances in customer accounts* are moved into the CSB Sweep daily. These deposits are allocated in increments of no more than $250,000 to multiple CSB Sweep Receiving Banks, which abides by the FDIC pass-through insurance provisions established by the FDIC. By allocating deposits to multiple banks, customers receive high levels of FDIC insurance while maintaining daily liquidity and the convenience of maintaining one bank relationship.
When placed into the CSB Sweep the following business day, are my deposits insured?
Until your funds are swept to the CSB Sweep, such funds will be uninsured to the extent they remain at their Participating Institution overnight in excess of any FDIC insurance available on balances kept at their Participating Institution. Their funds will be insured on the following business day once transferred to the Program.
What if my Participating Institution fails?
Assuming that the first $250,000 of your funds remains at the Participating Institution (and it is an FDIC-insured bank) with the remainder placed into the CSB Sweep, then the following would occur:
- An FDIC claim would be filed on your behalf for the $250,000 that remained at the Participating Institution. It typically takes two business days for the FDIC to settle such claims; but could be longer.
- The funds placed into the CSB Sweep are not impacted. Rather, those funds are placed at other FDIC-insured banks and similarly protected by FDIC insurance and continue to be available to the customer either through: (1) the Participating Institution in a wind-down mode, under the conservatorship of the FDIC, or a transitioning Participating Institution; or (2) Stable Custody Group II, LLC., the Demand Deposit Marketplace program administrator.
What if I do not want my money deposited in a particular CSB Sweep receiving bank?
You have the option to exclude any CSB Sweep receiving bank. However, by opting out of one or more CSB Sweep receiving banks, it may affect the maximum amount of FDIC insurance you may receive.
Funds participating in the CSB Sweep program are deposited into deposit accounts at participating Federal Deposit Insurance Corporation (FDIC) insured banks. Funds are insured at the standard deposit insurance coverage limit of $250,000 per depositor, per FDIC-insured bank, per ownership category. This includes any balances a bank customer may hold directly or through other intermediaries, including broker-dealers. The total amount of FDIC insurance in an account depends on the number of banks in the program. If the balance in the account is greater than the FDIC insurance coverage in the program, any excess funds will not be insured. Customers should read the Program Terms and Conditions carefully before depositing money into the program and for other important customer disclosures and information. To assure their FDIC coverage, customers should regularly review banks in which their funds have been deposited, and notify the sending bank immediately if the customer does not want to allocate funds to a particular bank or banks. The Demand Deposit Marketplace program is administered by Stable Custody Group II, LLC.
*CSB Sweep accounts may be subject to account analysis.