What is Wells Fargo stagecoach sweep account?

What is Wells Fargo Stagecoach Sweep Account?

Wells Fargo Stagecoach Sweep is a cash management service that allows clients to earn a return on uninvested cash balances in their account [1]. It automatically transfers excess funds into a sweep option designated by the client, such as an interest-bearing deposit account or a money market fund [1].

Types of Cash Sweep Options

Wells Fargo Advisors offers three cash sweep options for clients:

1. Standard Bank Deposit Sweep

  • Consists of interest-bearing deposit accounts at affiliated Program Banks [1].
  • Provides up to $500,000 in FDIC insurance ($1 million for joint accounts) [1].
  • Balances exceeding the insured limit are deposited at Wells Fargo Bank N.A. and may not be FDIC insured [1].

2. Expanded Bank Deposit Sweep

  • Consists of interest-bearing deposit accounts at affiliated and unaffiliated Program Banks [1].
  • Provides up to $1.25 million in FDIC insurance ($2.5 million for joint accounts) [1].
  • Balances exceeding the insured limit may be deposited at Wells Fargo Bank N.A. and may not be FDIC insured [1].

3. Money Market Fund Sweep

  • Automatically sweeps uninvested cash balances into a money market fund [1].
  • Is the default sweep feature for certain types of brokerage accounts and day-trading accounts [1].

Benefits of Stagecoach Sweep

  • Earning a return on uninvested cash balances [1].
  • Automatic transfer of excess funds into a designated sweep option [1].
  • FDIC insurance coverage for balances on deposit in the Bank Deposit Sweep Programs [1].

Conclusion

Wells Fargo Stagecoach Sweep is a convenient and effective way for clients to manage their cash balances and earn a return on their uninvested funds [1]. By choosing the appropriate sweep option based on their individual needs and risk tolerance, clients can optimize their cash management strategies [1].

References

[1] Wells Fargo. (n.d.). Cash Sweep Options. https://www.wellsfargo.com/investing/cash-sweep/

Key Facts

  1. Cash Sweep Options: Wells Fargo Advisors offers three options for clients to earn a return on uninvested cash balances in their account: the Standard Bank Deposit Sweep, Expanded Bank Deposit Sweep, and the Money Market Fund Sweep.
  2. Bank Deposit Sweep: The Bank Deposit Sweep is the primary cash sweep vehicle for eligible clients. It consists of interest-bearing deposit accounts at affiliated and unaffiliated Program Banks. The more assets you hold with Wells Fargo Advisors, the higher your interest rate will be for the cash deposited into the Sweep Program.
  3. FDIC Insurance: The Bank Deposit Sweep Programs provide FDIC insurance coverage for balances on deposit. The Expanded Bank Deposit Sweep offers up to $1.25 million in FDIC insurance ($2.5 million for joint accounts with two or more owners). Balances in excess of the insured limit may be deposited at Wells Fargo Bank N.A. and may not be FDIC insured.
  4. Standard Bank Deposit Sweep: The Standard Bank Deposit Sweep is an alternative to the Expanded Bank Deposit Sweep. It consists of interest-bearing deposit accounts at affiliated Program Banks. It provides up to a minimum of $500,000 in FDIC insurance ($1 million for joint accounts). Balances exceeding the insured limit will be deposited at Wells Fargo Bank N.A. and may not be FDIC insured.
  5. Money Market Fund Sweep: The Money Market Fund Sweep automatically sweeps uninvested cash balances into a money market fund. It is the default sweep feature for certain types of brokerage accounts and day-trading accounts.

[2] Wells Fargo Advisors. (n.d.). Cash Sweep Rates & Yields. https://www.wellsfargoadvisors.com/financial-services/account-services/cash-sweep/rates.htm

[3] Wells Fargo. (n.d.). Information Reporting and Liquidity Management. https://www.wellsfargo.com/com/treasury-management/liquidity-management/

FAQs

What is Wells Fargo Stagecoach Sweep Account?

Wells Fargo Stagecoach Sweep Account is a cash management service that allows clients to earn a return on uninvested cash balances in their account. It automatically transfers excess funds into a sweep option designated by the client, such as an interest-bearing deposit account or a money market fund.

What are the different types of sweep options available?

Wells Fargo Advisors offers three cash sweep options for clients: Standard Bank Deposit Sweep, Expanded Bank Deposit Sweep, and Money Market Fund Sweep.

What are the benefits of using Stagecoach Sweep?

Benefits of using Stagecoach Sweep include earning a return on uninvested cash balances, automatic transfer of excess funds, and FDIC insurance coverage for balances on deposit in the Bank Deposit Sweep Programs.

How do I choose the right sweep option for me?

The best sweep option for you will depend on your individual needs and risk tolerance. Consider factors such as the amount of cash you have to invest, your investment goals, and your risk tolerance.

How do I open a Stagecoach Sweep Account?

You can open a Stagecoach Sweep Account through Wells Fargo Advisors. Contact your financial advisor or visit a Wells Fargo Advisors branch for more information.

What are the fees associated with Stagecoach Sweep?

There are no fees associated with opening or maintaining a Stagecoach Sweep Account. However, there may be fees associated with the underlying sweep option you choose, such as management fees for money market funds.

Is my money safe in a Stagecoach Sweep Account?

Yes, your money is safe in a Stagecoach Sweep Account. The Bank Deposit Sweep Programs are FDIC insured up to the applicable limits.

How do I access my Stagecoach Sweep Account?

You can access your Stagecoach Sweep Account online through Wells Fargo Advisors’ website or mobile app. You can also view your account statements and transaction history by mail.

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