FolioFN Investments Inc., a Vienna, Va., online securities company, announced that it has started offering an cash investment product that provides Federal Deposit Insurance Corp. protection for up to $2.3 million in individual accounts and up to $5.75 million in retirement accounts by spreading deposits over a network of 23 banks.
The product is offered to retail and institutional clients, FolioFN said last week.
The company's products, much like a personalized mutual fund or exchange traded fund, allow individual investors to buy diversified portfolios of securities.
Other companies, including New York's Merrill Lynch & Co. Inc., offer similar FDIC-protected investment products, and more companies are introducing such products in response to the recent financial crises.
Also last week, PrimeVest Financial Services, an ING Group NV unit that provides investment products and services for banking companies, introduced a money market-like savings product for high-net-worth clients.
The FlexInsured Account allows clients with large cash balances to receive FDIC protection by sweeping assets into FDIC-insured money market accounts at multiple banks. Typically, the FDIC protects the first $100,000 of deposits in a bank account; more can be insured if assets are spread across multiple banks.
A day earlier Evolve Bank and Trust in Memphis announced it is making the Deutsche Bank Insured Deposit Program available to its customers. The program gives money market deposit account holders FDIC coverage of up to $3 million for individual accounts and $6 million for joint accounts.