Bank Deposit Cash Sweep Program

ESI is enhancing the way uninvested cash is handled in eligible brokerage accounts, providing the added security of FDIC-insured bank deposits while keeping client cash readily accessible for investments, withdrawals, and other account activity. The program is designed to prioritize the safety and availability of client cash—it is not intended to serve as a high-yield investment solution.

Important Update

We are transitioning to the Bank Deposit Sweep Program (BDSP) to provide enhanced protection for client cash while maintaining the access and flexibility you and your clients expect.

Read the Announcement
Financial Professional FAQ
Answers to common questions about the BDSP. Talking Points
Key messages to help you communicate with clients. Webinar: Learn More
On demand education Watch Now Client Letter (Coming Aug 3)
 View a sample of the client communication. Disclosure Document
Detailed information about the BDSP. Example Scenarios
View the BDSP Example Scenarios here.
New Accounts (On or After July 15, 2026)
All cash credits
(deposits, sales,
interest, dividends)
BDSP
Automatically swept to
BDSP (FDIC-insured
bank deposits)

All cash is held in the BDSP from day one.

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1

Drain and Fill – Existing Advisor as PM (APM) Accounts

On or about September 15, 2026, these accounts will be coded for “drain and fill.” The sweep vehicle will change to the BDSP, but money fund balances (SPAXX and FDRXX) as of the Effective Date will not convert.

Before September 15, 2026

Sweep Vehicle
Previous Money
Fund Sweep (SPAXX and FDRXX)

Existing balances
in money fund sweep

On or about
September 15, 2026

Account is coded for “drain and fill.” Sweep vehicle changes to BDSP.

On and After September 15, 2026

Previous Money
Fund Sweep (SPAXX and FDRXX)

Existing balances as of the Effective Date remain and will be drained first to satisfy debits.

BDSP
(Bank Deposit Sweep Program)

All new credits (deposits, sales, interest, dividends*) go into the BDSP.

* Dividends from the previous money fund sweep will continue to be reinvested in the money fund.

2

Full Conversion – Illuminations Advisory Accounts Managed by Third Party Asset Managers (e.g., Strategists)

On or about September 15, 2026, these accounts will be converted from their current money fund sweep to the BDSP. Any money fund sweep balances will be transferred to the BDSP.

Before September 15, 2026

Sweep Vehicle
Previous Money
Fund Sweep

Existing balances
in money fund sweep

On or about
September 15, 2026

Account is fully converted. Money fund sweep balances are transferred to the BDSP.

On and After September 15, 2026

BDSP
(Bank Deposit Sweep Program)

All balances and new credits go into the BDSP.

How Drain and Fill Works

Drain and fill is a process that updates the sweep vehicle for an account to the BDSP but also preserves initial balances
in the previous money fund sweep as of the Effective Date.

On or about
September 15, 2026

Debits

Money fund sweep will not accept new monies. All debits are satisfied first by redeeming shares of the money fund until balances are depleted. Once depleted, debits are satisfied from the BDSP.

Credits

All credits created on or after the Effective Date by deposits, sales, interest and dividends will be swept into the BDSP with the exception of dividends from the previous money fund sweep, which will be reinvested into the money fund.

Drain and fill continues until the money fund sweep balance is reduced to zero.

The drain and fill feature is systematically removed when the previous money fund sweep balance is reduced to zero.

Have Questions?

Call us at (800) 344-7437

National Life Group® (NLG) is a trade name of National Life Insurance Company (NLIC), Montpelier VT, Life Insurance Company of the Southwest (LSW), Addison TX and its affiliates. Each company is solely responsible for its own financial condition and contractual obligations. LSW is not an authorized insurer in NY and does not conduct insurance business in NY. The companies of National Life Group® and their representatives do not offer tax or legal advice. For advice concerning your own situation, please consult with your appropriate professional advisor.

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