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Advantage
Bank Deposit Program
-- A new way to
protect your short-term investments.
As
part of our ongoing efforts to offer clients quality service,
we are pleased to offer a new automatic investment, or "sweep",
of available cash balances in your brokerage account.
This new product offers:
- Up
to $1.0 million of FDIC insurance for individual, custodial,
and trust accounts
- Up
to $2.0 million of FDIC insurance for joint accounts
- Up
to $2.5 million of FDIC insurance for IRAs and other self-directed
retirement accounts
Advantage
Bank Deposit Program Rates
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Interest
paid on the deposit accounts is based on the total amount
of eligible assets by household that a client holds within
the Advantage Bank Deposit Program ("ABD Program")
according to the tiers outlined below. (See the Terms
and Conditions (updated 3/13/08) for more information.)
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Advantage
Bank Deposit Program Banks
Click
here
for the Program Deposit Bank List.
Eligible
Accounts
Not
all customers are eligible to participate in the Advantage
Bank Deposit Program. Specifically, Oppenheimer Managed Accounts
and Non-Natural Person Accounts, including, without limitation,
corporations, limited liability companies and partnerships,
cannot participate in the ABD Program. Please contact your
Oppenheimer Financial Advisor in the event that you would
like clarification as to whether or not any account(s) you
hold at Oppenheimer are eligible for the ABD Program, or click
here to read our Terms
and Conditions (updated 3/13/08) for more information.
FDIC
Insurance
Your money,
while deposited in any one of the Program Banks that are part
of the ABD Program, will be eligible for FDIC insurance up
to a standard maximum deposit insurance amount in the aggregate
with all other deposits that you hold in the same right and
capacity in that same bank, which is generally $100,000 per
bank, but may be $250,000 for IRA and certain other self-directed
retirement and pension accounts. Insurance limits are periodically
increased based on an inflation index. You are responsible
for monitoring the total amount of deposits that you maintain
with any listed bank in order to determine the extent of FDIC
insurance available to you, including, without limitation,
deposits held through any other accounts at Oppenheimer, deposits
that you maintain directly in the same capacity with any listed
bank or any CDs issued by a listed bank. The aggregation of
such deposits may cause you to exceed the maximum amount of
FDIC insurance allowable. Please contact your Financial Advisor
immediately in the event that you think this may be the case.
These bank deposits are not protected by SIPC or any excess
insurance held by Oppenheimer.1
If
you are interested in taking advantage of this product, or
for information concerning other investment opportunities,
such as money market funds, please contact your Oppenheimer
Financial Advisor.
1
FDIC deposit insurance and SIPC coverage are very different.
FDIC insures depositors against loss of principal value of
a deposit in the event of the insolvency of the bank that
issued the deposit. SIPC coverage protects against a disappearance
of securities that results from the insolvency of a broker-dealer
and a loss of customer cash held as a general obligation of
the broker-dealer up to the above stated limits. SIPC coverage
does not protect against a decline in value of securities,
and provides no coverage for balances held on deposit at a
bank, even if held through a broker-dealer. For further information
on FDIC insurance limits, please visit www.fdic.gov
or call (877) 275-3342. For further information on SIPC coverage
limits, please visit www.sipc.org
or call (202) 371-8300.
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