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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (166276)	11/22/2008 10:38:42 AM
From: posthumousone	Respond to of 306849

<< That will be OK until FDIC is bust. Any cash swept into a money market fund needs to be FDIC insured. SIPC is pretty much trash from what I understand....I don't think it will help. There aren't any equity positions that are insured and safe, IMO. If a clearing firm blows....the money is probably toast, IMO. I'm reading FDIC will eventually bust. >> I appear to be safe....but i am not comfortable Sweep 1 Option: SweepMax Retirement Product Description SweepMax Retirement is a bank deposit account at our affiliate, ETRADE Bank. Deposits are FDIC-insured up to $250,0001. It pays a high rate of interest at the higher balance tiers. It is not a money market fund. NOTE: SweepMax Retirement requires you sign up for and maintain electronic delivery of all of your brokerage account documents. Sweep2 Option: Extended Insurance Retirement Sweep Deposit Account (ERDA) Product Description ERDA is a bank deposit account at our affiliates, ETRADE Bank and ETRADE Savings Bank, available to retirement accounts only. In most cases, ERDA is FDIC-insured up to $500,0001. It is not a money market fund. Lots of fine print: 1The extent to which your ERDA will be covered by FDIC insurance will depend on the type of retirement account you have. Individual Retirement Accounts (IRAs) and 401(k) plan accounts qualify for $250,000 of FDIC insurance per institution. However, certain other retirement account types, such as Coverdell ESAs, Money Purchase Plans and Profit Sharing plans, are only eligible for $100,000 of FDIC insurance per institution. In some cases, pension and employee benefit plans with multiple participants may be eligible for "pass through" deposit insurance coverage of up to $100,000 per participant. Under the ERDA program, up to the first $250,000 of available cash balances from your brokerage retirement account is deposited into your ERDA at ETRADE Bank, up to the next $250,000 into a similar ERDA at ETRADE Savings Bank, and amounts over $500,000 into your ERDA at ETRADE Bank. For retirement accounts that do not qualify for $250,000 in FDIC insurance coverage at each bank, only the first $100,000 of available cash balances in your ERDA at ETRADE Bank will be eligible for FDIC insurance. Any cash balances from $100,001 to $250,000 at ETRADE Bank would not be covered by FDIC insurance. Cash balances of $250,001 to $350,000, which are held at ETRADE Savings Bank, would again be eligible for FDIC insurance, thereby providing extended insurance coverage under ERDA. Cash balances in excess of $350,000 would not be FDIC insured. 2The interest rates and the corresponding annual percentage yields ("APY") paid on your SDA/SweepMax SDA/SweepMax RDA /ERDA/ISDA and ESDA are subject to change from time to time without prior notice by the Bank, in its sole discretion. The APYs on the SDA/ SweepMax SDA/SweepMax RDA /ERDA/ISDA and ESDA are based on no withdrawal of credited interest and no change in the interest rate for a full year and no withdrawals or additions to the funds on deposit. Interest accrues daily and will be posted to your brokerage account on a monthly basis. The interest rates and APYs paid on your SDA/SweepMax SDA/SweepMax RDA /ERDA/ISDA and ESDA may be lower than rates paid by other banks or by the Bank on other accounts, including other types of checking or savings accounts. 3For partnerships, for-profit corporations or other customers that are not eligible under federal banking regulations to own interest-bearing transaction accounts, the current simple interest rates are noted above. Simple interest rates are the interest rate and the corresponding annual percentage yields ("APY") paid on the principal balance in the savings deposit sub-account of your SDA/SweepMax SDA/SweepMax RDA /ERDA/ISDA and ESDA if all interest paid on the account remains in the savings deposit sub-account. The transaction sub-account portion of the SDA/SweepMax SDA/SweepMax RDA /ERDA/ISDA or ESDA is a non-interest bearing sub-account. 4 In a retirement account, customers younger than 59½ are not eligible for Checkwriting , Debit Cards, Bill Payment or outbound Quick Transfer. 5We will not charge you a fee for withdrawing funds from any ATM nationwide but the owner/operator some ATMs may. In those cases, ETRADE automatically will refund your account for the amount of the fee by the end of the following business day. Qualified customers with $50,000 or more in combined ETRADE Securities and ETRADE Bank accounts or who make 10 or more stock or options trades per month (30 trades per quarter) get unlimited ATM fee refunds. All other customers get up to five ATM fee refunds per month. To learn more about E*TRADE Complete qualifications, please visit etrade.com. 6For details and important information about Quick Transfer, please click here for a listing of the limitations, restrictions and time deadlines associated with this service. SIPC coverage is not the same as the insurance on bank accounts provided by the Federal Deposit Insurance Corporation (FDIC). It does not protect investors against a decline in the market value of securities. SIPC generally protects customers against the physical loss of securities if the broker/dealer holding the securities for the customer fails.