Offering an attractive way to address your cash needs.
The Product is an option to automatically invest, or sweep, the available cash balance in your investment account (Account) into an interest-bearing position that is eligible for Federal Deposit Insurance Corporation (FDIC) insurance coverage.
The Product enables you to obtain FDIC insurance coverage on the cash balance in your Account through a highly liquid position comprised of bank deposits held at participating FDIC member insured depository institutions (IDIs) intended to provide a rate of return.
FDIC insurance covers both the principal and accrued interest of a depositor’s balance in each eligible account up to $250,000 per depositor, as recognized by the FDIC, at each IDI where money is deposited. It is important to note that the Dreyfus Insured Deposits product itself is NOT an FDIC-insured product. The Product is intended to direct the cash balance in your Account to multiple FDIC member Program Banks in a manner intended to secure pass-through FDIC insurance coverage on your Product balance from each Program Bank. The Dreyfus Insured Deposits product employs a "multi-bank" investment approach to expand the total eligible FDIC insurance coverage available on your product balance up to $2.5 million through the participating IDIs. This is accomplished by depositing the available cash balance in your Account into deposit accounts at multiple IDIs. To ensure your Product balance (principal plus accrued interest) receives the greatest amount of FDIC coverage available through the Product, the principal amount of your swept balance held at any one IDI is limited, to the extent possible and your total Product balance is also automatically capped at the FDIC insurance level of the Product.
In the event your total swept balance exceeds the FDIC insurance coverage limit of the product, that excess portion of your swept balance is automatically swept into a secondary sweep option, for which the current default is the Dreyfus Government Cash Management Service Shares money market fund (Ticker symbol DGUXX). Money market funds are not FDIC insured, have no bank guarantee, and may lose value.
Please note FDIC deposit insurance coverage is provided only by IDIs and is only applicable to your Product balance held at each participating bank, which is an IDI, for a total of up to $2.5 million in coverage on Product balances for each category of legal ownership, as more fully explained in the Terms and Conditions document for the Product.
Enclosed are links to three Product documents for your review:
- Terms and Conditions for Single Rate Product – This document serves as a summary of the features of the Dreyfus Insured Deposits product used in your Account.
- Bank list – This list details the banks currently available within the Product. The Bank List is subject to change. We will attempt to provide advance notice of changes to the Bank List via a message on your periodic Account statement, which will list your balance at each bank upon reinvestment.
- Rate Sheet – Contains the current Product rates. Product rates change as often as daily and the rate sheet is updated weekly. Current rates are available through your investment professional or introducing broker dealer (IBD).