Sweep Option Yields
For a current prospectus of any of the money funds, which contains more complete information, please call your Financial Advisor. Before investing, consider carefully the investment objectives, risks, and charges and expenses of the fund.
You could lose money by investing in a money market fund. With respect to a money market fund that qualifies as a “retail” or “government” money market fund under applicable money market fund regulations, although the money market fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. In the case of a money market fund that does not qualify as a “retail” or “government” money market fund, because the share price of the money market fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. If a money market fund does not qualify as a “government” money market fund, effective October 14, 2016, the money market fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the money market fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. A money market fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
The performance data quoted represents past performance; past performance does not guarantee future results current performance may be lower or higher than the performance data quoted.
The return of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
Understanding Your Cash Sweep and Other Cash Investment Options
Uninvested cash in your J.P. Morgan Securities brokerage, Advisory Services, and retirement accounts may be automatically “swept” to bank deposits with JPMorgan Chase Bank, N.A. Your J.P. Morgan Securities account statement indicates where your cash balances are currently deposited or invested and the current yield those balances are earning as of a recent date.
The information above about Recent Yields on the Bank Deposits is provided so that you can review with your Financial Advisor any alternative sweep options you may have and whether you may wish to avail yourself of any Manual Investment Alternatives, either of which may, at times, pay a higher return than the interest rate paid on deposits at JPMorgan Chase Bank, N.A. In selecting among your cash options, it is important to note that JPMorgan Chase Bank deposits provide the benefit of FDIC insurance (up to applicable limits) while money market funds have investment risk of various degrees and are not guaranteed or insured as to principal. A J.P. Morgan Securities Financial advisor is always available to discuss your cash options as the yields on respective cash options may change, depending on market conditions, at different times throughout the year.
Interest Rates and Yields
Interest rates paid on deposits held at JPMorgan Chase Bank, N.A. are determined at the discretion of JPMorgan Chase Bank, N.A. Rates may change daily.
Deposits made to JPMorgan Chase Bank, N.A. are insured by the Federal Deposit Insurance Commission, an independent agency of the U.S. Government, up to a maximum amount of $250,000 including principal and accrued interest, per depositor when aggregated with all other deposits held in the same legal capacity at JPMorgan Chase Bank, N.A.. Funds become eligible for deposit insurance immediately upon deposit. Your Deposit Account balances are not protected by the Securities Investor Protection Corporation.
All deposits (including CDs) maintained in the same legal capacity directly with JPMorgan Chase Bank, N.A., or through an intermediary (such as J.P. Morgan Securities or another broker), will be aggregated for purposes of the $250,000 limit. You are responsible for monitoring the total amount of deposits that you have with JPMorgan Chase Bank, N.A. in order to determine the extent to which your deposits are covered by deposit insurance. Neither J.P. Morgan Securities nor any of its affiliates is responsible for any insured or uninsured portion of the deposits you hold at JPMorgan Chase Bank, N.A.
Benefits to JPMorgan Chase Bank Deposits
Deposits held at JPMorgan Chase Bank, N.A. are financially beneficial to J.P. Morgan and its affiliates. For example, the JPMorgan Chase Bank, N.A. uses bank deposits to fund current and new lending, investment and other business activities. Like other depository institutions, the profitability of JPMorgan Chase Bank, N.A. is determined in large part by the difference between the interest paid and other costs incurred by them on bank deposits, and the interest or other income earned on their loans, investments and other assets. The deposits provide a stable source of funding for the JPMorgan Chase Bank, and borrowing costs incurred to fund the business activities of the JPMorgan Chase Bank has been reduced by the use of deposits from JPMorgan Securities clients.
Manual Investment Alternatives
There are investment alternatives to deposits held with JPMorgan Chase Bank, N.A. Depending on your investment objectives, liquidity needs and risk tolerance, your investment alternatives may include, but are not limited to, taxable and tax-exempt money market funds, certificates of deposit and other short-term money market investments, such as U.S. Treasury bills. While deposits held at the JPMorgan Chase Bank, N.A. are covered by FDIC insurance up to applicable limits, most of the available investment alternatives do not carry FDIC coverage, are subject to principal risk and are not obligations of the JPMorgan Chase Bank.
Some of these alternatives may pay a higher return than the interest rate paid on deposits at JPMorgan Chase Bank. However, these alternatives generally require that you speak to your Financial Advisor to invest or make a deposit. The alternatives listed under “Manual Investment Alternatives” require you to speak to your Financial Advisor to invest or make a deposit.
You may contact your Financial Advisor at the telephone number on your account statement.