Knowledge Center

Account Management

Bank Deposit Program

Scottrade offers a program that provides FDIC insurance protection for your uninvested cash of up to $500,000. It is called the Bank Deposit Program (BDP) because available cash in your Scottrade brokerage account will be transferred and deposited in one or more FDIC-insured bank accounts.

The Scottrade BDP seeks to provide you with the security of FDIC insurance for your cash balances. By utilizing multiple banks, the BDP has been structured to provide you with up to $500,000 in FDIC-insured deposits subject to certain limitations detailed in the Bank Deposit Program Terms, Conditions & Disclosures. Scottrade Bank, our affiliate, is one of the banks in this program.

How the BDP Works

Uninvested cash in participating Scottrade accounts is automatically deposited, or "swept," into one or more interest-bearing, FDIC-insured bank deposit accounts. When you purchase securities or withdraw funds, the necessary cash will be automatically swept back into your brokerage account. Balances and activity in the deposit accounts will be reflected online and on your Scottrade brokerage statement.

The interest rate earned by the deposit program will be the same as the interest rate for your Scottrade brokerage account.

Eligibility

To be eligible for the BDP, your Scottrade brokerage account must be of the following type: individual, joint, IRA, custodial or a trust for which the beneficiaries are natural persons or sole proprietorships. Accounts maintained in the name of business entities, including corporations and partnerships, are not eligible to participate in the BDP.

FDIC Insurance

Deposits in BDP accounts are insured by the FDIC subject to the Bank Deposit Program Terms, Conditions & Disclosures, as well as conditions set by the FDIC, an independent agency of the U.S. government. Because your funds may be maintained on deposit in multiple Program Banks, the maximum amount of FDIC deposit insurance coverage under the BDP is up to $500,000. Your funds become eligible for FDIC deposit insurance when the funds are deposited in a Program Bank. This includes investments such as certificates of deposit, other direct deposits you make with the Program Bank, and deposits through other BDP Accounts you have with Scottrade or through another brokerage firm. Please be advised that if you choose to opt out of one or more banks participating the BDP you may not be eligible for FDIC insurance coverage up to the maximum of $500,000.You are responsible for monitoring all your balances to determine what deposit insurance coverage is available to you. If you have questions about FDIC insurance coverage, more information about FDIC insurance is available at www.fdic.gov or by phone (877-275-3342 or 800-925-4618). Or, you may wish to seek advice from your own attorney or financial advisor concerning FDIC insurance coverage of deposits. The Securities Investor Protection Corporation ("SIPC") and Scottrade's excess SIPC insurance do not cover deposits in BDP.

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The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.