FDIC-Insured Deposit Account
At LT Trust, we believe that the best interests of employees should always be the primary consideration when working with a retirement plan. That’s why we strive to provide products and services that maximize employee opportunities to achieve retirement success.
Funds in the Deposit Account will be placed with one or more third-party FDIC-insured financial institutions selected by LT Trust that are categorized as “well capitalized” institutions by the FDIC and that enter into sub-accounting agreements with LT Trust.
As of January 1, 2020, the current interest rate applied to the ERISA Deposit Account is 2.33%, and Non-ERISA is 0.20%. The most current interest rate information may also be obtained by calling 1-800-831-8675.
FDIC Coverage Limits:
$250,0000 per account holder per bank
Interest Frequency:
Compounded and credited monthly using the average daily balance
Average Daily Balance:
The average daily balance is calculated by adding the principal in the Deposit Account for each day in the period
and dividing that figure by the number of days in the period. Interest begins to accrue no later than the secondbusiness day following the day of deposit of non-cash items.
About the FDIC-Insured Deposit Account
At its discretion, the Employer may opt to include a Third-Party FDIC-Insured Deposit Account (“Deposit Account”) as a default deposit account for its Plan participants or otherwise make the Deposit Account available to its Plan participants.
Funds placed in the Deposit Account will be placed with one or more third-party FDIC-insured financial institutions selected by LT Trust that are categorized as “well capitalized” institutions by the FDIC and that enter into subaccounting agreements with LT Trust. The Employer authorizes LT Trust to withdraw in the future the Plan’s full balance and deposit it with other FDIC-insured depository institutions selected by LT Trust. All such cash deposits will be insured up to the legal limit, as established by the FDIC. For additional information regarding FDIC insurance, please visit www.fdic.gov or call 1-877- ASKFDIC.
The Employer is deemed to have approved the use of such third-party financial institution(s) for the Plan’s cash deposits in the event the Employer chooses to make the Deposit Account available to its Plan participants. LT Trust may receive a sub-transfer agency fee based on the average aggregate balances held by the third-party financial institution, for the provision of administrative and sub-accounting services to such third-party financial institutions by LT Trust.
A variable rate of interest will be applied to the Plan’s cash deposits in the Deposit Account. The interest rate and APY applied to the deposits may change at any time. The interest on the Plan’s cash deposits in the Deposit Account is compounded and credited on a monthly basis. In order to receive interest, the account must be open as of the interest crediting date. The interest is calculated using the average daily balance method. This method applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the principal in the Plan’s cash deposits for each day in the period and dividing that figure by the number of days in the period. Interest begins to accrue no later than the second business day following the day of deposit of non-cash items.
