FDIC-Insured Deposit Sweep Program Offered in Connection with Fidelity Cash Management Account Essay examples

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Fidelity® Cash Management Account FDIC-Insured Deposit
Sweep Program Disclosure
Summary
This document provides important information about the FDIC-Insured Deposit Sweep Program offered in connection with the Fidelity® Cash Management Account (the “Account”). If you have questions or need additional information, you can call a Fidelity Representative at 800-544-6666.

How It Works
Your Fidelity® Cash Management Account utilizes a core account through which all transactions settle. Uninvested balances in your core account will be held in a core position called the “FDIC-Insured Deposit Sweep” (the
“Sweep”). Cash contributed to or received in your Account is held in the core account (the “Cash Balance”). On the next business day (not including bank holidays or days on which the New York Stock Exchange is closed, such as Good Friday) after receipt, Cash Balances are automatically “swept into” an FDIC-insured interest-bearing account (a “Program Deposit Account”) at one or more participating banks (each a “Program Bank”). A hierarchical list of Program Banks will be assigned to your Account (the “Program Bank List”) and the first bank on your
Program Bank List will be designated as your “Primary Program Bank.” Cash Balances up to the Maximum Deposit
Limit (as further defined below) will be swept to your Primary Program Bank. The additional Program Banks, if any, on your Program Bank List will be available to accept excess Cash Balances in the event that you reach the
Maximum Deposit Limit at your Primary Program Bank, provided, however, that if you have Program Deposits at each available Program Bank on your Program Bank List in an amount equal to the Maximum Deposit Limit, any remaining Cash Balances will be swept to your Primary Program Bank. Once your Cash Balance has been swept into a Program Deposit Account, it becomes eligible for FDIC insurance and is referred to as your “Program
Deposit.” Beginning with your Primary Program Bank, your Program Deposit is also automatically withdrawn from
(“swept out of”) a Program Deposit Account back into your Fidelity Cash Management Account as necessary. In this document, the sweep process between your Fidelity Cash Management Account and the Program Deposit
Account is referred to as the “Program.” The Program is only available to account owners of Fidelity Cash Management Accounts registered in the name of individuals or trusts, but only if all the beneficiaries of that trust are natural persons.
You will be informed of the Program Bank List assigned to your Account. If you open a new Account, you will receive this information in connection with the account opening process. For more information about the method used to generate your Account’s Program Bank List, please refer to the “Details” section of this document.
Program Deposit Accounts are established on behalf of you and other Fidelity customers who participate in the
Program. Although Fidelity will sweep your Cash Balance into a Program Deposit Account at a Program Bank, you will only have access to your Cash Balance through your Fidelity Cash Management Account. Please call a
Fidelity Representative with questions on accessing your Cash Balance. You cannot make withdrawals from the
Program Deposit Account, even if you contact the Program Bank. A full list of current Program Banks can be found on our Web site at Fidelity.com/FCMACoreBanks or by calling a Fidelity Representative. Once your
Account is established, you will have the ability to modify the Program Bank List assigned to your Account by opting out of one or more of the Program Banks. You may also select a different Program Bank List if one is available. To discuss either possibility, please contact a Fidelity Representative.
Fidelity has the right to limit the amount of your Cash Balance that is swept into a Program Deposit Account, or to move your Cash Balance to another Program Bank if Fidelity determines that such action is necessary to protect your funds, or in the…