Standard Bank Deposit Sweep. We and the Affiliated Banks, benefit financially from cash balances held in the Standard Bank Deposit Sweep. As with other depository institutions, the profitability of the Affiliated Banks is determined in large part by the difference or "spread" between the interest they pay on deposit accounts, such as the Standard Bank Deposit Sweep, and the interest or other income they earn on loans, investments, and other assets. As noted above, higher rates of interest than the rates credited by the Affiliated Banks on Standard Bank Deposit Sweep deposits may be available outside of the Cash Sweep Program. Clearing Agent has a conflict of interest because it influences both what it pays you in interest and what it and its employees receive in compensation on the Standard Bank Deposit Sweep. The participation of the Affiliated Banks in the Standard Bank Deposit Sweep is expected to increase their respective deposits and, accordingly, overall profits. We may receive fees and compensation of up to two percent (2%) from the Affiliated Banks and/or their affiliates based on the average monthly deposit balances in the Standard Bank Deposit Sweep (computed on an annualized basis). This compensation is subject to change, and we may waive all or any part of this fee at any time without notice. In addition, certain of our employees, including financial professionals, may receive incentive compensation based in part on new assets in the Standard Bank Deposit Sweep or the profitability of the Standard Bank Deposit Sweep for the Affiliated Banks and their joint parent company, Xxxxx Fargo & Company. As a result of the fees and benefits described above, the Standard Bank Deposit Sweep will be more profitable to the Clearing Agent than the Expanded Bank Deposit Sweep, which means the Clearing Agent will receive a greater benefit if you select the Standard Bank Deposit Sweep as your Cash Sweep Vehicle.
Standard Bank Deposit Sweep. The Standard Bank Deposit Sweep is available as an alternative to the Expanded Bank Deposit Sweep and serves as the primary Cash Sweep Option for retirement accounts in discretionary advisory programs managed by the Clearing Agent. The Standard Bank Deposit Sweep consists of interest-bearing deposit accounts at two or more Affiliated Banks. The Standard Bank Deposit Sweep will provide a minimum of $500,000 in FDIC insurance ($1 million for joint accounts with two or more owners).
