Expanded FDIC Insurance on Cash
Millennium Trust provides a cash investment program for investment of idle cash in IRAs up to $1,000,000 using FDIC-insured, interest-bearing bank demand accounts at four unaffiliated banks. To view list of banks participating in Cash Investment Program, click here. We pride ourselves on being innovative and responsive to our clients’ needs.
How the Program Works
In the event that funds are received by Millennium Trust for which there is no investment direction, MTC will invest such cash as follows. (See Figure 1.)
The first $250,000 of uninvested funds will be held in an FDIC- insured bank account with Bank A.
As the account's cash balances grow, balances above $250,000 will also be held in an FDIC-insured bank account with Bank B.
As cash exceeds $500,000, funds will also be held in an FDIC- insured bank account at Bank C.
Once cash exceeds $750,000, funds will be held in four unaffiliated FDIC-insured bank accounts at Banks A, B, C and D.
Balances over $1,000,000
Balances over $1,000,000 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. Investors may also obtain current information by viewing the Fund’s Fact Sheet.