FDIC insurance and Your Sweep/Cash Management Account
Riverview Asset Management & Trust Company manages the “sweep” accounts for Riverview Community Bank. Depending on the type of investment vehicle you have chosen you may have more than $12,000,000 of FDIC Insurance on your account or your account may have no FDIC Insurance. The following is a list of the various sweep investment choices and a brief description of each. Please feel free to give us a call at (360) 759-2437 if you have any questions.
General Money Market Fund (Tiered Liquidity Bank Funds and Insured Trust Funds)
Funds held in our tiered Liquidity Bank Funds are held in various local banks offering FDIC insurance coverage. For each client account we invest the first $245,000 at local Bank A, the next $245,000 at local Bank B, the next $245,000 at local Bank C, etc. For the cash in excess of $980,000, we will be using the Premier Insured Funds. (Please see the following paragraphs for more information on the Premier Insured Funds.) Because we limit the amount at any one bank to $245,000, the funds should be fully insured under the current FDIC rules IF you have less than $5,000 in other accounts at those institutions. Banks participating in your money market fund may include Banner Bank, Pacific Continental Bank, Riverview Bank and/or Umpqua Bank. If you have significant deposits at any of these banks and wish to “opt out” of using them for FDIC insurance purposes, please contact us.
The excess cash over $980,000 will be held in the Premier Insured Fund at a local bank in a qualifying Transaction Account Guarantee (TAG) fund. The TAG program through the FDIC is a temporary program that offers UNLIMITED FDIC insurance coverage for money held in daily demand accounts (i.e. checking accounts) paying NO interest. Riverview Asset Management Corp, however, has agreed to pay our clients interest based on their daily balances.
The Tiered Liquidity Bank Fund is not guaranteed by Riverview Asset Management Corp.
Transaction Account Guarantee Program
Riverview Community Bank participates in the Transaction Account Guarantee Program offered by the Federal Deposit Insurance Corporation (FDIC). This means the FDIC through December 31, 2011 insures the funds held in your noninterest-earning checking account in full. However, if funds are swept to an interest-earning account that does not qualify for FDIC Insurance then they no longer qualify for FDIC insurance under the Transaction Account Guarantee Program. This action voids the FDIC’s guarantee with respect to the swept or transferred funds only. The fund you currently hold is based on your election at the time your sweep account was opened, or upon your last written direction if you have elected to change your fund since opening the account. Please refer to your account statement for your holdings.