Insured Cash Account

Current Rates
Bank Information
ICA Disclosure Information
FDIC Website

THE PRIORITY BANK LIST BELOW WAS MOST RECENTLY CHANGED ON March 10, 2014.

Welcome to the LPL Financial ("LPL Financial") Insured Cash Account ("ICA") program. Generally, under the ICA program, your available cash balances (from securities transactions, dividend and interest payments and other activities) in your eligible accounts will automatically be deposited into interest-bearing Federal Deposit Insurance Corporation ("FDIC") insured deposit accounts ("Deposit Accounts") at one or more of the banks or other depository institutions on the Priority Bank List set forth below (each, a "Bank"). For yields for money market mutual funds that LPL Financial continues to offer, please contact your financial advisor.

The Deposit Accounts available through the ICA program are eligible for insurance by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000 in principal and accrued interest per depositor (including individual retirement accounts ("IRAs"), including Roth IRAs, and certain other retirement accounts) in each insurable capacity (e.g., individual, joint, etc.) per insured depository institution. As your agent, LPL Financial will place up to $246,500 of your available cash for an individual or trust account, and up to $493,000 for a joint account, in one Bank. As your agent, LPL Financial will open Deposit Accounts at additional Banks so that funds in excess of $246,500 for individual or trust accounts (or $493,000 for a joint account) may be swept into those accounts, which are also eligible for deposit insurance. If $246,500 has been deposited for you (or $493,000 for your joint account) through the ICA program in each Bank on the Priority Bank List up to $1.5 million, excess funds above $1.5 million of deposit insurance ($3 million for joint accounts) will be invested in the J.P. Morgan Prime Money Market Fund - Service Shares. A prospectus for the J.P. Morgan Prime Money Market Fund - Service Shares is available from LPL Financial upon request. If invested in the J.P. Morgan Prime Money Market Fund - Service Shares, your funds are not eligible for FDIC deposit insurance.

The ability of the ICA program to sweep your uninvested cash into Bank deposit accounts depends, however, on the capacity of the Banks to accept new deposits.  If one or more of the Banks at which you do not already have deposits decline to accept your uninvested cash, your cash that cannot be fully deposited into the Banks will be automatically invested into the J.P. Morgan Prime Money Market Fund - Service Shares just as it will be when your available cash exceeds the maximum level of available deposit insurance (currently $1.5 million for individual accounts and $3 million for joint accounts).  When Bank capacity is restored, under the ICA program, your funds are automatically moved from the J.P. Morgan Prime Money Market Fund, and LPL Financial, as agent, will deposit those funds into deposit accounts with the available Bank(s), subject to the maximum amount of FDIC insurance.

The ICA program is available only to individuals, trusts (so long as all beneficiaries of the trust accounts are natural persons), and sole proprietorships. Custodial accounts are eligible for the Program if each beneficiary is an eligible person. LPL Financial may at its discretion deem an eligible person to be an ineligible person if LPL Financial becomes aware that the person is prohibited as a matter of law from holding funds at the Bank. Entities organized or operated to make a profit, such as corporations, partnerships, associations, business trusts, and other organizations (other than sole proprietorships), and discretionary investment advisory retirement accounts are not eligible for the ICA program. Please consult your financial advisor for additional details concerning eligibility.

Each Deposit Account constitutes a direct obligation of the Bank and is not directly or indirectly an obligation of LPL Financial. You can obtain publicly available financial information concerning each Bank at www.ffiec.gov/nic or by contacting the FDIC Public Information Center by mail at 3501 North Fairfax Drive, Room E-1005, Arlington, VA, 22226 or by phone at (877) 275-3342 or 800-925-4618 (TDD).

LPL Financial does not guarantee in any way the financial condition of the Banks or the accuracy of any publicly available financial information concerning such Banks. Please see the ICA Disclosure Information page and FDIC links above for more information about FDIC limits applicable to the Deposit Accounts, particularly as aggregated with any other deposit account you may maintain at a Bank. Please note that your Deposit Accounts are not eligible for SIPC coverage.

In the event a Bank fails, the Deposit Accounts at that Bank are insured up to $250,000 for principal and interest accrued to the day the Bank is closed. LPL Financial is not responsible for any insured or uninsured portion of a Deposit Account. You are responsible for monitoring the total amount of deposits that you have with each Bank in order to determine the extent of deposit insurance coverage available to you. Depending on the amount of deposits that you have at a Bank apart from the Deposit Accounts, you may wish to direct that the Bank be excluded from the Priority Bank List applicable to you.

The interest rates on the Deposit Accounts will vary based upon the value of the eligible assets you maintain in your eligible accounts, including amounts on deposit in your Deposit Accounts ("Interest Rate Tiers"). You may link your eligible accounts to eligible accounts held by members of your household to determine your Interest Rate Tier. The aggregate balance of all "linked" eligible and participating accounts is referred to as your "Household Balance." In general, clients with greater Household Balances will receive a higher interest rate than clients with lower Household Balances. LPL Financial will determine your Household Balance each day. Generally, the previous day's Household Balance will determine your eligibility for a particular Interest Rate Tier.

Each Bank will pay LPL Financial a fee equal to a percentage of the average daily deposit balance in your Deposit Accounts at the Bank. The fee paid to LPL Financial may be an annual rate of up to 200 basis points on the Bank's Deposit Accounts although the fees to LPL Financial on some accounts may be higher or lower than this amount.  Depending on the prevailing interest rate environment at a particular time, the fees paid by the Bank may be more or less than the interest the Bank pays on your deposit accounts.  The fees LPL Financial receives from the Bank may be greater than the fees LPL Financial receives from other sweep investment options.  In its discretion, LPL Financial may reduce its fee and may vary the amount of the reductions among Interest Rate Tiers. The fee LPL Financial receives may differ among Banks depending on the interest rate environment and/or any fee reductions made by LPL Financial. The amount of fee received or waived by LPL Financial will affect the interest rate paid by the Bank on your Deposit Accounts. financial advisors do not receive any of the fees received by LPL Financial from the Banks, although they may receive a portion of the fees LPL Financial receives from other sweep investment options. Upon request, LPL Financial will provide you with information concerning the fees it receives in connection with the ICA program.

The Banks in Priority Bank List appear in multiple columns corresponding to the region or state in which you reside or to where your household accounts have been designated. There are at least thirteen Banks in the order in which the deposit accounts will be opened for you and your funds will be deposited. The final two banks in the row are "Excess Banks", these banks will accept funds after the funds deposited in the Banks on the Priority List reach $1.5 million for individual or trust accounts and $3 million for joint accounts and if the J.P. Morgan Prime Money Market Fund - Service Shares money market fund is temporarily unable to accept your funds in those amounts. You should review the Priority Bank List carefully.

You may not change the order of the Banks on the Priority Bank List. However, you may, at any time, designate a Bank as ineligible to receive your funds. This will result in your funds being deposited into deposit accounts at the next Bank on the Priority Bank List. In addition, you may at any time instruct us to remove your funds from a Bank, close your deposit accounts with the Bank and designate the Bank as ineligible to receive future deposits. Unless you direct us to place your funds in a different investment, your funds from closed deposit accounts will be deposited in deposit accounts at the first available Bank set forth on the Priority Bank List, as amended by you. You may instruct your financial advisor to designate a Bank as ineligible to receive your funds.

Although your funds generally will be deposited in deposit accounts at the Banks in the order in which the Banks appear on the Priority List, in rare circumstances, a Bank on the Priority List may be unable to accept your funds on a particular day. This will typically not occur if you already have funds on deposit with a Bank. If a Bank is unable to accept your funds on a day you have funds to deposit, your funds will be deposited in the next available Bank on the Priority List up to $246,500. Once your funds have reached $246,500 in this Bank, your funds will next be deposited in the Bank that is the highest in the priority sequence that is available to accept your funds. This Bank will accept your funds up to $246,500. The process will be repeated when additional funds are to be deposited with your funds going to the highest available Bank in the priority sequence. At the end of each month, LPL Financial will determine the amount of your funds, if any, that have been deposited in Banks in an order different than the priority sequence. If it is possible to re-balance your funds so they are in the Banks in the appropriate priority sequence, LPL Financial will withdraw your funds and re-deposit them in that sequence. If it is not possible to re-balance all of your funds in the appropriate priority sequence, your funds will not be re-balanced.

If, due to insufficient capacity, one or more of the Banks at which you do not already have deposits are unable to accept your funds on a day when you have funds to deposit, your funds that cannot be fully deposited into the Banks will be automatically invested into the J.P. Morgan Prime Money Market Fund - Service Shares just as will occur when your available cash exceeds the maximum level of available deposit insurance (currently $1.5 million for individual accounts and $3 million for joint accounts).  When Bank capacity is restored, under the ICA program, your funds are automatically moved from the J.P. Morgan Prime Money Market Fund, and LPL Financial, as agent, will deposit those funds into deposit accounts with the available Bank(s), subject to the maximum amount of FDIC insurance.

Further, the Priority Bank List may be changed. In general, you will receive prior notification of changes to the Priority Bank List. However, under certain limited circumstances prior notification will not be possible. One or more of the Banks included on the Priority Bank List may be replaced with a Bank not previously included on the Priority Bank List, a Bank may be deleted from the Priority Bank List, or the order of the priority sequence may change. In general, you will receive notification in advance of such changes and have an opportunity to designate a Bank as ineligible to receive your deposits before any funds are deposited into a new Bank or in a new sequence. However, if a Bank is unable to accept deposits for regulatory or other reasons, or is unable to continue its participation in the Insured Cash Account program, LPL Financial may not be able to provide you with advance notice. LPL Financial will provide you with notice of such changes as soon as practicable. LPL Financial may also notify you that changes to the Priority Bank List will be forthcoming and direct you to your Financial Advisor and www.lpl.com for specific information on such changes. If a Bank at which you have deposit accounts no longer makes the deposit accounts available through the Insured Cash Account program, you will be notified by LPL Financial and given the opportunity to establish a direct depository relationship with the Bank, subject to its rules with respect to establishing and maintaining deposit accounts. If you choose not to establish a direct depository relationship with the Bank, your funds will be transferred to deposit accounts at the next available Bank on the Priority Bank List.

Please see the ICA Disclosure Information page link below for additional information about the operation and features of the Insured Cash Account program.