Janney’s Program insures your cash management deposit accounts through the Federal Deposit Insurance Corporation (FDIC), a federally sponsored corporation established in 1933. FDIC insurance covers both the principal and accrued interest in each account up to $100,000 per depositor, for any member bank that may fail where money is deposited.

However, Janney seeks to offer its clients an advantage. Our multi-bank program significantly increases your FDIC insurance coverage and reaffirms our commitment to providing you with competitive products and services.

Unlike using a single bank to deposit your cash balances where you are limited to that one bank’s FDIC insurance coverage, Janney’s Program allows funds to be deposited into a number of different banks allowing for insurance coverage of at least $1,000,000 per account holder; $2,000,000 for joint accounts; and $2,500,000 for retirement accounts.

Janney continues to insure brokerage accounts with Securities Investor Protection Corporation (SIPC) insurance. SIPC insurance does not apply to deposit accounts. Contact your Financial Consultant for more information about SIPC insurance.

As a Janney client, your brokerage accounts are automatically eligible for the Insured Sweep Program and will be enrolled upon account opening. You may, however, direct your Financial Consultant to deposit your cash in other investments which may or may not be eligible for FDIC insurance nor will they be eligible for the sweep features. Additionally, you may instruct your Financial Consultant to hold your cash balances as a “free-credit” which may not earn interest.

To maximize your FDIC insurance protection, Janney Montgomery Scott LLC (“Janney”) may reallocate the banks involved in the FDIC insured sweep program (“FDIC Program”). If Janney determines that, based on an analysis of a client’s other investments within Janney (e.g., a Certificate of Deposit), a client exceeds the insured amount of deposit with a bank in the FDIC Program, Janney may opt your sweep balances from being placed in that corresponding bank. These assets will be re-allocated to an alternative bank(s) within the FDIC Program.

Please note that Janney will only review client assets within Janney. Clients are responsible for monitoring the total amount of deposits they hold with any one bank over their entire portfolio, including assets held in accounts away from Janney.

Janney’s Insured Sweep Program takes into consideration total assets held at Janney, not just your money market fund balances. We consider all client account balances within a “household” (same mailing address and/or Tax ID Number) and these will automatically be consolidated to determine your total household account balance with Janney. Your total household account balance is then used to determine your qualifying interest rate tier and your ultimate interest rate of return.

Interest paid to you for a particular month is based on your total household account balance as of the last calendar day of the previous month. You can view current rates at any time or request a copy of current rates from your Financial Consultant.