I asked Chase (our org’s bank) about the money market sweep option, and they said theirs is not a money market sweep, but an investment sweep, going through funds with JP Morgan, and it’s NOT FDIC-insured. The funds could increase or decrease in value; it’s a risk just like investing is. Other than those differences, it sounded similar to what you were writing about.
Were you actually writing about a couple different things, or is there a way to find an FDIC-insured option like this?
This isn’t FDIC insured, but the money market fund linked is just in US treasuries so presumably negligible risk.
There are some multi-institution accounts called Insured Cash Sweep you can find to get higher FDIC insurance limits, though I think they generally have lower interest rates. This one from Mercury is an example.
Thanks for writing this up!
I asked Chase (our org’s bank) about the money market sweep option, and they said theirs is not a money market sweep, but an investment sweep, going through funds with JP Morgan, and it’s NOT FDIC-insured. The funds could increase or decrease in value; it’s a risk just like investing is. Other than those differences, it sounded similar to what you were writing about.
Were you actually writing about a couple different things, or is there a way to find an FDIC-insured option like this?
This isn’t FDIC insured, but the money market fund linked is just in US treasuries so presumably negligible risk.
There are some multi-institution accounts called Insured Cash Sweep you can find to get higher FDIC insurance limits, though I think they generally have lower interest rates. This one from Mercury is an example.