What is the coverage level for uncompleted external sweeps?
Sweeps from an account of an insured institution to another institution, such as a sweep to a mutual fund, will not be considered as completed by the FDIC in the event an insured depository institution fails. As such, the result will depend upon whether the customer’s deposit account is an interest-bearing account as opposed to a non-interest bearing transaction account. Assuming that the deposit account is a non-interest bearing transaction account, the customer’s funds will be fully protected under the TAG component of the TLGP.
