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Dreyfus Insured Deposit Program

Issue 2 - August 2008

In the midst of today’s tremendously volatile markets, many investors have stepped to the sidelines waiting for turbulence to subside and are looking for a safe place to put their money. Investors with cash awaiting reinvestment seek security and the Federal Deposit Insurance Corporation (FDIC) only insures interest in bank accounts up to $100,000 per depositor. Investors with larger cash balances need a separate approach. To that end, and in keeping with Pershing’s continued effort to provide your firm with the products and services you need to maintain a competitive edge and build your business, the Dreyfus Insured Deposit Program is now available for both retail and retirement accounts.

The Dreyfus Insured Deposit Program is a bank deposit sweep program that provides FDIC insurance on cash balances up to $1 million ($2,000,000 for joint accounts and $2,500,000 for certain retirement accounts) through a multibank investment approach. Client assets are swept daily and deposited among multiple banking institutions, as determined by the client’s available cash balance, providing aggregate FDIC insurance coverage. In order to ensure that a client’s balance, in addition to accrued interest, receives full coverage, the program limits the principal amount of client assets held at each bank to $98,500.

With the multibank approach, clients also have the potential of earning interest at higher rates based on the growth of their brokerage account balances. As a client’s brokerage accounts total net worth increases, so does the interest rate paid on their Dreyfus Insured Deposit Program positions. Interest rates are determined by aggregating the net worth of all accounts. Using the combined net worth of linked accounts can quickly transition a client to a higher interest rate tier.

To provide the utmost flexibility in order to maximize clients’ profitability and increase revenue options that best fit your business model, the Dreyfus Insured Deposit Program offers up to six different tiered interest rate schedules. Once the desired schedule is chosen, your client will be placed in the appropriate interest rate tier based on the total net worth of all the client’s brokerage accounts that are registered under the same Social Security number.

All of this is fully supported by Pershing and seamlessly integrated into the Pershing Money Fund Choice Plus program. The program can be used with the check writing and debit card services that Pershing currently offers through its ProCash Plus® product.

Give your clients peace of mind with the greater aggregate amount of FDIC coverage the Dreyfus Insured Deposit Program can offer.

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