Investment advisors who custody assets with TD Ameritrade will now have access to an enhanced FDIC Insured Deposit Account (IDA). By adding another bank to the account, TD Ameritrade effectively doubled the FDIC coverage for deposits in the account to $500,000, according to a January 7 announcement.
TD Ameritrade added the second bank, TD Bank, N.A., to its existing IDA bank–TD Bank USA, N.A. Each bank offers FDIC coverage of up to $250,000 per depositor, for a total of $500,000. Introduced last May, the IDA has become popular: "Over the past 6 months, the IDA has become our primary sweep vehicle which reinforces a focus on capital preservation and liquidity," says Zohar Swaine, managing director of strategy at TD AMERITRADE Institutional, in the release.
