Bank Deposit Sweep Program (BDSP) and Ladenburg Insured Cash Account Program

The Bank Deposit Sweep Program (BDSP) and Ladenburg Insured Cash Account Program are the core account investment vehicles used to hold cash balances while awaiting reinvestment for all eligible brokerage accounts held through KMS at Pershing LLC.

The Ladenburg Insured Cash Account Program is only for fee-based retirement accounts held through KMS at Pershing LLC; all other eligible brokerage accounts held through KMS at Pershing LLC accounts use the Bank Deposit Sweep Program.  

For each program, the cash balance in an eligible brokerage account at Pershing is automatically deposited or "swept" into an interest-bearing account.

Disclosures and Resources

Program

Eligible Accounts

Disclosure

Additional Resources

Bank Deposit Sweep Program

All KMS accounts held at Pershing LLC, except:

  • Advisory IRA and Advisory Roth IRA accounts
  • 403(b) accounts
  • Otherwise eligible accounts held at Pershing LLC where the address of record is outside the United States

Disclosure Document

FAQ Page

Ladenburg Insured Cash Account Program

All KMS Advisory IRA and Advisory Roth IRA accounts held at Pershing LLC, except:

  • Education Savings Accounts/Coverdell IRA accounts
  • SEP IRA accounts
  • Simple IRA accounts
  • Otherwise eligible accounts held at Pershing LLC where the address of record is outside the United States

Disclosure Document

FAQ Page

Participating Bank List and Money Fund Sweep Rates

* Important Note: Individual deposit account balances over $1.5 million exceed the maximum applicable FDIC deposit insurance amount available through the Bank Deposit Sweep Program and Ladenburg Insured Cash Account Program. Amounts in excess of $1.5 million are NOT eligible for FDIC insurance coverage.

** It is anticipated that the monthly program fee will be covered by the interest paid by banks participating in the Ladenburg Insured Cash Account Program. In such a case, the monthly program fee will not be charged. Please refer to the Ladenburg Insured Cash Account Program Disclosure Document for more details.

The rate of interest paid is based on the value of your account's program deposits ("eligible assets"). Eligible assets are evaluated on a daily basis. Interest rates, APY, evaluation period, and eligible assets may change at any time and may be based on a number of factors including general economic, market, and business conditions. The interest rates will vary, and may be higher or lower at any given date. Rates and fees are subject to change as stated in the Disclosure Documents.

Program rate for a participating account is the interest earned the last business day stated as a percentage of assets invested. Annual percentage yield is the compounded yearly investment rate of return. The stated program rate is net of all fees.

Please refer to the information in your Bank Deposit Sweep Program or Ladenburg Insured Cash Account Program Disclosure Document or contact your investment representative for details about SIPC protection or FDIC insurance, which are subject to applicable coverage per account. You may also visit the FDIC's website for information at www.fdic.gov. At the time of deposit with KMS Financial Services, Inc. and until such funds are deposited with a Program Bank they are protected by the SIPC; upon deposit at a Program Bank, your funds are eligible for FDIC insurance. SIPC does not protect against investment losses that may be incurred with respect to securities or other investments held in your brokerage account.

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