I am in the process of opening Traditional IRA account with Citibank (currently have checking and saving account at Citibank)
Purpose is to purchase ETF for long-term.
Form has section to determine if Cash Balances (dividends from ETF in my case) go to Bank Deposit Program or No Sweep.
From what I understand No Sweep is when money is left alone, i.e. not invested back.
If this is the case why is No Sweep option included and why would anyone select No Sweep.
When I asked this to about 5 licensed financial representatives and licensed advisers of Citibank, no one had a clear explanation.
Two of them said I am over-thinking such small detail.
Please advise
Trade Settlement/Sweep Option
A. Bank Deposit Program ("BDP"). Cash Balances are swept daily into a
federally insured savings deposit account(s) which participate in BDP.
<checkbox> Please link my Citibank Banking Card, which will allow me
electronic access to my CGMI account through Citibank Online. In addition, a
summary of information will appear on my Citibank statement.
B. No Sweep. Cash balances are not swept into an interest bearing product.
<checkbox> Please link my Citibank Banking Card, which will allow me
electronic access to my CGMI account through Citibank Online. In addition, a
summary of information will appear on my Citibank statement.
