Keep Your Money Working With Practical Investment Features  
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.
 
FDIC insurance limits
 
The FDIC deposit insurance limit is $250,000 (including principal and accrued interest) for all deposits held in the same insurable capacity (e.g., individual account, joint account, etc.) per depository.
 
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
 
Beginning July 1, 2010, Morgan Stanley Bank, N.A. and Morgan Stanley Private Bank, National Association (formerly Morgan Stanley Trust), (the "Banks") will no longer participate in the FDIC's Transaction Account Guarantee Program ("TAGP"). Thus, after June 30, 2010, funds held in noninterest-bearing transaction accounts, and certain NOW and linked MMDA accounts with interest rates at or below 0.50%, will no longer be guaranteed in full under the TAGP, but will be insured up to $250,000 under the FDIC's general deposit rules.
 
Certain clients who participate in Morgan Stanley Smith Barney's Bank Deposit Program or invest in GlobalCurrencySM savings deposits were eligible to enroll their deposits in the TAGP. The interest rates for these deposits will revert to their generally applicable Bank Deposit Program or GlobalCurrency rates on July 1, 2010 and, as indicated above, standard FDIC insurance limits will apply.
 
Please visit www.fdic.gov for more information.
 
*The Banks are FDIC members. Morgan Stanley Smith Barney LLC ("Morgan Stanley Smith Barney") and Morgan Stanley & Co. Incorporated (“Morgan Stanley”) are registered broker-dealers, not banks. Morgan Stanley Smith Barney and the Banks are affiliates. Unless specifically disclosed to you in writing, other investments and services offered to you through Morgan Stanley Smith Barney and or Morgan Stanley are not insured by the FDIC, are not deposits of or other obligations of, or guaranteed by, the Banks and involve investment risks, including possible loss of principal amount invested.
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.