How competitive are the interest rates under the IDCSA?
It is expected that — although we can’t guarantee it — the interest rates payable under this new IDCSA will generally be competitive with rates paid by certain banks for similar types of accounts. See our current rates. In addition, we aggregate — for purposes of the tiering to qualify for higher interest rates (and not for purposes of qualifying for FDIC insurance) — all accounts with the same taxpayer ID number on the account. For example, an individual account and a retirement account and a joint account with the same taxpayer ID number on each account will be aggregated for purposes of elevating funds into a higher tier. These accounts are not aggregated for FDIC insurance and so you get the benefit of the additional FDIC insurance. This aggregation applies to our sweep product (FDIC.SWEEP), not the higher yield FDIC.PLUS product.
It is expected that — although we can’t guarantee it — the interest rates payable under this new IDCSA will generally be competitive with rates paid by certain banks for similar types of accounts. You may wish to compare the terms, rates of return, required minimum amounts, charges and other features of our IDCSA (both through the sweep mechanism as well as the OCDM) with other accounts and alternative investments at other brokerages. Generally our rates of return are at the low end of rates available in the marketplace and more similar to rates payable on cash in checking accounts than in higher yielding cash-based investment accounts. If cash sweep rates are material to your decision as to where to have an investment account you should compare our rates with those at other institutions and review the overall package of services and benefits we offer to those offered at such other institutions in making your decisions. See our current rates. In addition, we aggregate — for purposes of
