Sweep Option Yields
For a current prospectus of any of the money funds, which contains more complete information, please call your Investment Professional. Before investing, consider carefully the investment objectives, risks, and charges and expenses of the fund.
Investments in the money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $j1 per share, it is possible to lose money by investing in the funds.
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 Investment Professional 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 investment professional 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.
Your deposits in the JPMorgan Chase Bank, N.A. are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to applicable limits. For bank deposits held through non-retirement accounts, the FDIC limit is $j100,000 per depositor in each insurable capacity. For bank deposits held through certain retirement accounts (primarily traditional and Roth IRAs), the FDIC limit is $j250,000 per depositor.
It is your responsibility to monitor the total amount of your deposits with JPMorgan Chase Bank, N.A. and the capacities in which you own those deposits to determine the extent of insurance coverage available on your deposits. It is important to note that uninvested cash held in more than one Bear Stearns account may be deposited to JPMorgan Chase Bank, N.A.. Also, amounts in excess of the applicable FDIC insurance limit may be deposited to JPMorgan Chase Bank, N.A. Any certificates of deposit that you own issued by JPMorgan Chase Bank, N.A. will also count toward the FDIC insurance limits.
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 Investment Professional to invest or make a deposit. The alternatives listed under “Manual Investment Alternatives” require you to speak to your Investment Professional to invest or make a deposit.
You may contact your Investment Professional at the telephone number on your account statement.