Cash Sweep Program
Baird’s Cash Sweep Program provides you the opportunity to earn income on available cash balances held in your Baird accounts. If you elect to be in the program, your available cash in your Baird account is automatically deposited or swept in an interest-bearing account maintained at one or more participating banks (the “Bank Sweep Feature”). By using multiple participating banks, the Bank Sweep Feature seeks to provide aggregate FDIC insurance protection for your cash balances of up to $1.25 million for most account types (or $2.5 million for joint accounts with two or more owners) (the “Aggregate Deposit Limit”). See “Bank Sweep Feature” below. Any cash balances in excess of the Aggregate Deposit Limit are automatically invested in shares of the Dreyfus Government Cash Management – Wealth Shares. For ERISA plan accounts, all of the cash in their Accounts will be automatically invested or swept into the Dreyfus General Government Securities Money Market Fund – Dreyfus Class. In addition, clients with aggregate cash balances of $5 million or more across all of their Baird accounts within the same household may elect to have all or any portion of their cash balances automatically swept into the Dreyfus Government Cash Management Fund – Institutional Class. See “Money Market Fund Feature” below.
For more information about Baird’s Cash Sweep Program, please continue reading below, see our Cash Sweep Program Disclosure and Important Information about Cash and Cash Equivalents, Money Market Mutual Funds and Cash Alternatives or contact your Baird Financial Advisor.
Baird receives compensation in connection with the Cash Sweep Program on both the Bank Sweep Feature and the Money Market Fund Feature. See “Baird Compensation from Cash Sweep Program” below.
Current Interest Rate and Yield Information – As of October 15, 2021
Bank Sweep Feature – Current Bank Deposit Account Interest Rates
|Client Household Balance*||Rate|
|$0 - $249,999||0.01%|
|$250,000 - $999,999||0.01%|
|$1,000,000 - $1,999,999||0.02%|
|$2,000,000 - $4,999,999||0.02%|
|$5,000,000 or more||0.03%|
*The rates that clients receive on their cash balances in Bank Sweep Feature are tiered, based on the aggregate value of the accounts within the client’s household (“Household”). Accounts within a Household include all of the client’s accounts at Baird and any accounts related to the client that share the same address and, at the client’s request, are linked for purposes of the Cash Sweep Program. It is intended that all Baird Accounts within the client’s Household will receive the same rate of interest on all of their deposit accounts at the banks participating in the Bank Sweep Feature. The tier applicable to your and other clients’ Household accounts will be determined by Baird on a monthly basis calculated as of the last business day of the preceding calendar month.
Current Yield on Money Market Mutual Fund Feature
Only available to select clients as stated below.
|Government Funds||7 Day Yield
|Available to excess FDIC balances above $1.25 million per depositor and ERISA plans|
|Dreyfus Government Cash Management – Wealth Shares||DGQXX||0.03%|
7 Day Yield
|Available to clients whose household cash balances are $5 million or greater.|
|Dreyfus Government Cash Management Fund – Institutional Class||DGCXX||0.03%|
An investment in a money market mutual fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, but is protected by SIPC coverage. Although money market mutual funds typically seek to preserve the value of an investment at $1.00 per share, there can be no assurance that will occur, and it is possible to lose money should the fund value per share fall. Most money market mutual funds are required to maintain a stable $1.00 net asset value per share, but some are not.