What is an FDIC-Insured Deposit Sweep?

To provide you with the benefit of FDIC insurance eligibility, the cash balance in your account will be automatically swept into an interest-bearing FDIC-Insured Deposit Sweep position. Since FDIC insurance coverage is currently limited to $250,000 per qualified customer account per banking institution, Fidelity may use several banks, rather than just one, to maximize your FDIC coverage. This is referred to as the Program Bank List and it will be assigned when you open your account. The first bank listed below will be your Primary Program Bank. Please see the FDIC-Insured Deposit Sweep Program Disclosures (PDF) for more information. For additional information about FDIC insurance coverage, please visit the FDIC website at www.FDIC.gov.*

What Primary Program Bank will be assigned to receive my deposits?

Based on the Program Bank List assigned to your account, a Primary Program Bank will be assigned to receive your account's deposits. Your Primary Program Bank will be the first bank in list below.

What Program Bank List will be assigned to my account? How will it be used?

Program Banks as of 05/24/2022 are:

  • GOLDMAN SACHS BANK USA
  • HUNTINGTON NATIONAL BANK
  • PEOPLES UNITED BANK - unavailable
  • BANK OF OKLAHOMA
  • CITIZENS BANK NA
  • PACIFIC WESTERN BANK
  • HSBC BANK USA
  • STERLING NATIONAL BANK
  • UMB BANK NA
  • FULTON BANK NA - unavailable
  • Show all 26 Program Banks.

On May 16, 2022, Bank of America's participation in the Fidelity FDIC-Insured Deposit Sweep Program will end, and Bank of America will be removed from the Program Bank List assigned to your account.

In connection with this change, if your account has been assigned a Program Bank List that includes Bank of America as the first bank (the Primary Core Bank), on or around April 25, 2022, your account will be assigned an updated Program Bank List. This updated Program Bank List will replace your current Program Bank List reflecting Discover Bank as the Primary Core Bank. This will be the case regardless of whether you previously opted out of Discover Bank.

Between now and May 16, 2022, Bank of America will not be available to accept deposits. As a result, you will not have funds on deposit at Bank of America. Therefore, neither the assignment of a revised Program Bank List on April 25, nor the removal of Bank of America from the Program Bank List on May 16, will affect where your Cash Balances are deposited.

You are not required to take any action at this time, but if you have any questions about the removal of Bank of America, or changes to the assigned Program Bank Lists, please contact a Fidelity Representative at 800-544-6666. If you do not contact Fidelity before the changes noted above take effect, Fidelity will consider you to have acknowledged and agreed to continue to participate in the Program including the changes described above.

If at any time the cash balance in your account exceeds $245,000, the additional amount will automatically be swept into the next bank on your Program Bank List.

Important: While the FDIC insurance coverage limit at each bank is $250,000, $5,000 is reserved for accrued interest.

For example, a customer with $500,000 cash balance would have:

  • The first $245,000 swept into the first bank on the Program Bank List.
  • The next $245,000 swept into the second bank on the Program Bank List.
  • The remaining $10,000 swept into the third bank on the Program Bank List.

After your account is established, you may select a different Program Bank List, if one is available, to receive your deposits. Call a Fidelity representative at 800-544-6666 for assistance.

Since my deposits are being held with a Program Bank, do I need to do anything special to access these funds?

No, you can use your account just as you would any account at Fidelity. Fidelity will automatically manage the money movement between the bank and your account, in accordance with the FDIC-Insured Deposit Sweep Program Disclosures (PDF). You cannot access or withdraw your cash by contacting the bank directly.

Is there more detailed information available?

Yes, please see the FDIC-Insured Deposit Sweep Program Disclosures (PDF) for more information, as well as how your rate will be determined.

* The cash balance in the core position is swept to an FDIC-insured interest-bearing account at a Program Bank. The deposit at the Program Bank is not covered by Securities Investor Protection Corporation (SIPC). The deposit is eligible for FDIC insurance subject to FDIC insurance coverage limits. All assets of the account holder at the depository institution will generally be counted toward the aggregate limit. For more information about FDIC insurance coverage, please visit the FDIC website at www.FDIC.gov or call 877-ASK-FDIC. As referenced in the
FDIC-Insured Deposit Sweep Program Disclosures (PDF),
customers are responsible for monitoring their total assets at the Program Bank to determine the extent of available FDIC insurance. All FDIC insurance coverage is in accordance with FDIC rules. The parent company of Fidelity has a minority percentage, non-controlling interest in Leader Bank, N.A.

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