This post was authored by Salvatore M. Capizzi, Dunham's Chief Sales & Marketing Officer. If you have questions concerning today's topic, please call us at (858) 964 - 0500. Hold us to higher standards.

Dunham - A Leader in Innovative Programs for Your Clients, offers up to $50 Million in FDIC Insurance Through its Insured Deposit Marketplace (IDM) available in Dunham’s Asset Allocation Wrap Fee Program.

Advisory fee available on this program.***

The failure of Silicon Valley Bank may have wealthy depositors with more than $250,000 at their bank on edge. Their concern centers around FDIC insurance covering only up to $250,000 of their deposits. If their bank fails, for deposits above $250,000, there is no guarantee they will get their money back. (1)

How the Program May Benefit Your Client

Through the Insured Deposit Marketplace, Dunham will automatically place your client’s assets among the participating banks, providing up to $50 million in FDIC Insurance. At the same time, we offer what we consider to be a very competitive interest rate.

What if One of the Banks within the Program Fails?

Let us answer this through a hypothetical example.

Suppose your client placed $1 million in the Dunham Insured Deposit Marketplace. The Dunham program will automatically spread these assets among four banks providing $1 million of FDIC insurance.

If there was a bank failure within this group of banks, if your client wants, they can immediately redeem $750,000. On behalf of your client, we will file a standard claim with the FDIC, and the other $250,000 can be redeemed by your client typically after two business days.

In some cases, the FDIC may need additional time to determine the amount of deposit insurance coverage and may request supplemental information from the depositor in order to complete the insurance determination.

Compare this to a client having $1 million in one bank.

Interestingly enough, according to CNBC, as of December 2022, 95% of Silicon Valley Bank’s deposits were not insured. (2) That is, in our view, a staggering concept.

Client’s Peace of Mind

Imagine your client’s relief knowing that even if the worst happens and a bank fails, they have full liquidity for the portion not in the failed bank. It is the FDIC’s goal to have the insured deposit to you within two business days,. (3)

That is the beauty of the Dunham Insured Deposit Marketplace. The FDIC insurance acts as a safety net. This lifeline may help your client weather the storm that may be ahead of us and is a shield that protects them from the uncertainties of the economy and the health of banks. It gives them the freedom to pursue their dreams without the constant fear of financial ruin.

For more information, please call our Business Development Team at 858 964 – 0500.

(1) New York Time – March 10, 2023,all%20of%20their%20money%20back.

(2) CNBC, March 11, 2023


Please read the IDM Disclosure Booklet for details, limitations, and eligibility requirements to participate in the IDM.

Important Disclosures

If you participate in the IDM offered by Dunham Trust Company (“DTC”), DTC is acting as your agent. DTC also serves as custodian of the Custom Asset Allocation Programs and is an affiliated entity of Dunham & Associates Investment Counsel, Inc., (“DAIC”), a Registered Investment Adviser and Broker/ Dealer. Member FINRA/ SIPC. DAIC is the sponsor of the Dunham Asset Allocation Program.

*The Annual Percentage Yield (APY) quoted, with a minimum balance of $0.01, is current as of the date shown. This rate is variable and may change daily without notice. Interest rates paid on deposits held at DTC are determined at the discretion of DTC. The APY is a rate based on monthly compounding of interest and assumes interest is not withdrawn from the deposit account and no changes to the interest rate for one year. The interest rate and APY may change at any time at the discretion of DTC. Yields represent past performance. Past performance is no guarantee of future results. Current performance may be lower or higher than the performance quoted above. Yields will fluctuate as market conditions change.

The APY is reduced by the 25 basis point program fee charged by DAIC as the program sponsor of the wrap fee program and the advisory fee, your advisor may charge on this account.

**APY shown is net of maximum advisory fees that may be charged in the Asset Allocation Program. In preparing the Net APY, we used the firm’s maximum total annual fee of 2.25%, consisting of a maximum asset-based advisory fee of 2.00% (“Asset-Based Advisory Fee”) and a program fee of 0.25% program fee (“Program Fee”). The actual Net of Fee APY will vary based on the actual advisory fees charged.

***The IDM is the default cash sweep option available in the Dunham Asset Allocation Program and as such subject to the Dunham program fee of 0.25% (covering limited discretionary investment management, brokerage and custodial services related to Dunham Funds, shareholder servicing and distribution, and client communication), and the advisory fee charged, based on the average daily net asset value of the account that, you may charge. As the financial advisor of your client’s account, it is your responsibility to ensure the program is appropriate and in the best interest for your client’s individual financial situation. The program may be used to dollar cost average into the market based on your client’s individual situation and financial objectives. Please consult with your Compliance Department to ensure the program is in compliance with your firm’s reverse churning policy.

Dollar cost averaging does not assure a profit and does not protect against loss in a declining market.  Such a plan involves continuous investment in securities regardless of fluctuating price levels of such securities. Investors should consider their financial ability to continue their purchases through periods of falling prices, when the value of their investments may be declining.

The IDM is subject to investment risks, including the risk that the bank may default and you may lose money. However, the deposit account is FDIC-insured up to $250,000 per account owner, per bank, in accordance with FDIC rules. Interest rates may fluctuate and affect the APY.

The FDIC insurance limit for all insurable capacities in the IDM is $250,000 per account owner, per bank, in accordance with FDIC rules. The IDM program banks may be excluded from receiving program deposits in the event that total assets at a program bank (including assets that are held with the bank outside of DTC’s IDM) exceed the FDIC insurance limits. For example, if you have deposits in a bank through the program and also have made deposits at that bank outside the program, all of these deposits will count toward the FDIC limit. It is your obligation to monitor your account(s), your FDIC coverage and your FDIC insurance eligibility. See for more details regarding FDIC coverage. For more information on DTC’s IDM, please refer to the IDM Disclosure Booklet. If you would like to opt out from certain program banks, please speak to your advisor or contact Dunham at

Excluding a bank from holding your Insured Bank Deposit balances may result in a lower available program limit for FDIC insurance. The bank list is subject to change.

DTC receives compensation or incentives from the partner bank or other third parties for selecting IDM. For the IDM, the program interest rate is impacted by several factors, including the total amount paid on deposits by the program banks, the fee paid to DTC and a fee paid to a third party that assists DTC in operating the program. DTC determines the portion of revenue it receives as a fee. The fee paid to DTC will affect the interest rate and may exceed the amounts paid to clients in the form of interest. The rate of return for the sweep option shown will vary over time and may be lower than rates available to clients making deposits directly with the bank, or at other banks, or available by investing directly in other money market funds. Neither the program banks nor DTC is required to offer the highest rates available or rates comparable to money market mutual fund yields. In contrast, money market mutual funds generally seek to achieve the highest rate of return consistent with their investment objectives, which can be found in their prospectuses.

DTC, at its discretion, may determine that your account is ineligible to participate in the IDM. IDM provides up to $50 million of FDIC insurance.

The deposit rates and annual percentage yields are variable and may change at any time at DTC’s discretion. They are effective as of the date shown above. Interest will be accrued daily and credited monthly.

Unlike the IDM, non-deposit investments held by your Broker-Dealer (such as DAIC), are NOT FDIC INSURED / NOT BANK GUARANTEED / MAY LOSE VALUE.

All examples are hypothetical and are for illustrative purposes only. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. The solution for an investor depends on their and their family’s unique circumstances and objectives. No two markets are the same and past performance is not an indication of future results.

Please carefully consider the above information before selecting the Bank Deposit Sweep option for your uninvested cash balance. If you have any questions, please contact your advisor.

©2023 Dunham & Associates Investment Counsel, Inc. All Rights Reserved

Dunham & Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer. Member FINRA / SIPC.

Advisory services and securities offered through Dunham & Associates Investment Counsel, Inc. Trust services offered through Dunham Trust Company, an affiliated Nevada Trust Company.