No matter how you choose to put your money to work, the Active Assets Account offers valuable investment features to keep it working harder.
- Automatic cash sweep -Available cash balances are automatically swept into bank deposit accounts or a money market fund. Click here for (rates).
- Direct deposit service - You can have regular paychecks and payments, such as Social Security, VA or pension payments automatically deposited into your Active Assets Account. Direct Deposit Service is reliable and secure, and you don't have to wait for checks to arrive in the mail or run to the bank.
- Systematic investment programs - As an added convenience, Morgan Stanley Smith Barney offers a number of systematic investment programs that can suit your needs.
- Free dividend reinvestment -If you choose, you can have dividends automatically reinvested in additional shares, without incurring commission charges.
- Margin borrowing privileges - With margin privileges you can borrow against the value of your assets to buy additional securities or anything else you wish. It is important that you understand fully the risks involved in trading securities on margin. You must request and be approved for margin privileges. Margin borrowing is not for everyone. You will be charged interest at varying rates on the amount borrowed. See a Morgan Stanley Smith Barney Financial Advisor for more information and a copy of the Active Assets Account Client Agreement for terms and conditions.
Securities and cash held in Morgan Stanley Smith Barney accounts are protected up to their full net equity value by a combination of coverage provided by the Securities Investor Protection Corporation (SIPC), a non-profit organization created by an Act of Congress and additional protection purchased from a group captive insurance company by Morgan Stanley Smith Barney ("excess coverage'). SIPC protects up to $500,000 of your securities, of which up to $100,000 may be uninvested cash. Excess Coverage provides additional protection up to the full net equity value of each account including unlimited coverage for uninvested cash. SIPC and excess coverage apply only to securities and cash in the exclusive possession and control of Morgan Stanley Smith Barney and do not protect against losses due to fluctuations in the market. If you would like more information, please contact a
Morgan Stanley Smith Barney Financial Advisor. Additional information about SIPC and asset protection may also be found at
www.sipc.org.
Increase in FDIC insurance limits
The FDIC recently temporarily increased deposit insurance coverage from $100,000 to $250,000 per depositor through December 31, 2013. The Deposit Limit at each Sweep Bank in Morgan Stanley's Bank Deposit Program will increase from $98,500 to $245,000 for individually owned accounts and from $197,000 to $490,000 for joint accounts. There is no change to the Deposit Limit for IRAs and ERISA accounts, which will continue to be $245,000.
Detailed information on federal deposit insurance coverage can be found on the FDIC’s website at:
www.fdic.gov. For more information about the Bank Deposit Program, including Deposit Limits, please contact your Financial Advisor or review the
Bank Deposit Disclosure Statement.
FDIC Transaction Account Guarantee Program
Morgan Stanley Bank, N.A. and Morgan Stanley Trust are participating in the FDIC's Transaction Account Guarantee Program. Under that program, through June 30, 2010, all noninterest-bearing transaction accounts, and certain NOW and linked MMDA accounts with interest rates at or below 0.50%, are fully guaranteed by the FDIC for the entire amount in the account. Eligible clients who participate in Morgan Stanley's Bank Deposit Program or invest in GlobalCurrencySM savings deposits must enroll for their deposits to be fully guaranteed under the FDIC's Transaction Account Guarantee Program through June 30, 2010 and will receive interest at or below 0.50% during that period. Please contact your Financial Advisor for enrollment information. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit rules.
The Active Assets Account is a brokerage account with Morgan Stanley Smith Barney LLC. Where appropriate, Morgan Stanley Smith Barney has entered into arrangements with licensed banks to assist in offering certain services. Morgan Stanley Smith Barney LLC is a registered broker-dealer, not a bank.
