Changes in the Federal Reserve's interest rates can affect the amount of investment we can make on your behalf only for new deposits: we can buy more market investments when interest rates are higher and less when interest rates are lower.
The Market Savings Deposit Account with Webster Bank, N.A., Member FDIC,† is a non-interest-bearing account, which means you do not receive interest on your FDIC-insured deposit.† Instead of interest, we invest in the market on your behalf with equivalent portfolio investments and the returns are what you earn.
What we mean by equivalent portfolio investments is essentially taking the economic value of your transactions and deposits and purchasing an equivalent investment on your behalf. Any economic value is funded by Save partner banks and payment networks and there is no requirement for customer outlay of their own capital, nor do we fund it from customer accounts. For Market Savings, all cash deposited by customers is placed in an FDIC-insured bank account with Webster Bank, N.A., Member FDIC,† and is not used to fund investments and is therefore not at risk of loss. It is important to note that Save is not a bank, but we partner with FDIC-insured member banks.