Clients who establish an account at Baird authorize and direct Baird to automatically deposit all of the free credit balances in the account to an FDIC-insured bank deposit account established by Baird with a bank with whom Baird contracts (the “Bank”), including amounts exceeding applicable FDIC insurance limits, unless the client is otherwise eligible for automatic investments into one or more money markets funds that Baird makes available.

The interest rates that clients receive on their balances in the Bank deposit account are tiered on the basis of the aggregate value of the assets in their accounts belonging to the same household, with clients having larger aggregate household values receiving higher rates of interest than clients with lower aggregate household values.

  • The FDIC–insured deposit account is established at the Bank in the name of Baird for the exclusive benefit of its customers. 
  • Baird acts as agent for the Bank and maintains records identifying the client as the owner of the account. 
  • The FDIC-insured deposit account is in book entry-form and no passbook or other certificate is issued to the client by the Bank. 
  • Deposits, withdrawals and other transactions in the FDIC-insured deposit account can be made only through Baird, not directly through the Bank. 
  • Deposits in the Bank FDIC-insured deposit accounts generally are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $2.5 million for most account types (or $5 million for joint accounts with two or more owners) (the “Aggregate Deposit Limit”). This includes certain retirement accounts, such as traditional and Roth IRAs, and self-directed Keogh and 401(k) accounts. The client should read the Robert W. Baird & Co. Incorporated Cash Sweep Program Summary Fact Sheet and Insured Money Market Deposit Account Information Statement to obtain greater detail on the FDIC–insured deposit account and the applicability of FDIC insurance to such accounts, including any limitations or exclusions of insured coverage, which is sent to Client upon the opening of an account. Those materials are available from your Baird Financial Advisor or at
  • Baird reserves the right to transfer client balances in the Bank deposit account that exceed applicable FDIC limits into a deposit account at another Bank or in a money market mutual fund. 
  • The Securities Investor Protection Corporation (“SIPC”) and Baird’s policy in excess of SIPC limits do not cover deposits in the Banks’ FDIC-insured deposit accounts. 
  • Baird receives compensation from the Bank for providing deposit placement, administration and recordkeeping services based on the amounts deposited into the Bank deposit account.

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