Cash Investment Program
Millennium Trust offers a cash-investment program for investment of idle cash up to $1,000,000 using FDIC insured bank interest bearing demand accounts at four unaffiliated banks (To view list of banks participating in Cash Investment Program, click here). Custody accounts enjoy FDIC coverage up to $400,000 in the same manner
In the event that funds are received by Millennium Trust for which there is no investment direction, MTC will invest such cash as follows. The first $250,000 of uninvested funds in an IRA will be held in an FDIC insured bank account with Bank A. As IRA cash balances grow, balances above $250,000 will be held in an FDIC insured bank account with Bank B. As cash exceeds $500,000, funds will be held in an FDIC insured bank account at Bank C. Once cash exceeds $750,000, funds will be held in an FDIC insured bank account at Bank D. See Figure 1.
The Cash Investment Program for custody accounts works the same way. With the expansion of FDIC coverage of non-IRA accounts up to $250,000 through December 31, 2013, custodial account clients enjoy the same protection as they choose the liquidity of maintaining a cash balance.
Balances over $1,000,000 in IRA accounts will be held in the Federated Government Obligations Fund – Trust Shares. Investors should carefully consider the investment objectives, risks, charges, and expenses of mutual funds before investing. As with other money market mutual funds, the Fund’s yield will fluctuate and the Fund is not FDIC insured and may lose value. Please review the Fund’s prospectus which
provides details of this and other important information and which is available from Millennium Trust. IRA investors may also obtain current information by viewing the Fund’s Fact Sheet.
When distributions are taken or investments purchased, funds will be withdrawn in the reverse order of their deposit.
Investor funds deposited in this account are insured up to $250,000 by the FDIC in each Cash Investment Program participating bank; however, clients with other IRAs or retirement accounts at Cash Investment Program participating banks should go to
www.fdic.gov for additional information on the amount of FDIC insurance coverage available
.
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