National Financial announced today a new program that enables retail broker/dealers to deposit or "sweep" cash in their customers' eligible brokerage accounts into multiple interest-bearing bank accounts that offer FDIC insurance coverage.

The National Financial Bank Deposit Sweep Program offers broker/dealers the ability to allocate their customers' brokerage cash across as many as eight program banks.

Within the new offering, principal and accrued interest will be eligible for FDIC insurance up to the current $250,000 per bank, or combined coverage of up to nearly $2 million when deposits are spread across multiple banks in the network. For example, an investor deposits $600,000 into his or her brokerage account and then selects three program banks within the "sweep" program. The following business day, $246,500 is deposited in the first program bank, $246,500 is deposited in a second program bank, and the remaining $107,000 is deposited into a third program bank, providing the customer FDIC coverage for the entire $600,000.

"Given the volatility of the markets over the past year, investors have historically high levels of cash and may be looking to protect their principal as they evaluate long-term investment opportunities," said Bob Leonhardt, senior vice president, National Financial. "Our new program can help firms meet their customers' funding and liquidity needs by providing them with an FDIC-insured option within their brokerage account that offers coverage of up to nearly $2 million."

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