How is Choice impacted by the recent news regarding Silvergate Bank, Silicon Valley Bank and Signature Bank?
Choice / Kingdom Trust does not have any relationships with nor exposure to Silvergate Bank nor Silicon Valley Bank. We have maintained USD deposit accounts at Signature Bank, however, those account balances have been withdrawn and Choice / Kingdom Trust has no exposure to Signature Bank.
Where does Choice hold client cash?
Choice / Kingdom Trust is not a depository institution, so we work with several FDIC-insured banks to hold uninvested client cash. These balances are held in separate accounts from corporate cash and spread around multiple banks to minimize concentration risk.
Is my uninvested cash balance FDIC-insured?
Yes, uninvested cash held by Choice / Kingdom Trust, for the benefit of clients, is held in financial institutions covered by the FDIC. FDIC insurance covers up to $250,000 per account and applies to cash deposits only. There are some circumstance whereby FDIC insurance may not be available for 100% of a client’s uninvested cash (e.g. when clients hold cash balances significantly over $250,000). Please note that FDIC insurance does not insure a client’s investment(s) and only applies to uninvested cash.