TD cash FDIC protection?

P

prc117f

One of my brokerage accounts now show 350K total cash and cash alternatives (TD)

FDIC covers 250K does TD offer the extended FDIC protection like etrade? by combining different affiliated banks and splitting it amongst them?

70K of that TD considers cash, the rest FDIC. is the cash amount SIPC covered? then the rest FDIC covered?

I cant open another etrade account since I already have one to split the SIPC risk on 3 brokerages but now TD I have the cash risk with FDIC. I do not see any mention of extended FDIC. I do plan on calling Monday to find out. but anyone here have any insight?
 
it depends on how one sets the sweep option in his brokerage account. According to SEC,

1) sweep option1: money market deposit account at a bank that may or may not be affiliated with the broker-dealer. FDIC –insured? YES, up to $250K

a. FDIC insurance covers all deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit. The standard insurance amount is $250,000 per depositor (i.e., per brokerage customer), per insured bank, for each account ownership category.


2) sweep option 2: Other options include leaving cash in the brokerage account. FDIC insured? Yes, up to $250K


3) sweep option 3: one or more money market mutual funds. not insured, risk to lose value. For example, during the Great Recession, 2008. if it wasn't for the Treasury to step in, a lot of people would have lost a lot of money.
 
You must log in or register to reply here.
Back
Top