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Frequently Asked Questions About the Alliance Account

Here are the answers to some common questions about Prudential's Alliance Account.
What is an Alliance Account?
When and how can the funds in an Alliance Account be accessed?
Is the money secure?
Do the funds in the account earn interest?
How long can the funds remain in an Alliance Account?

 

 

What is an Alliance Account?

An Alliance Account is an interest-bearing draft account established in the beneficiary's name with a draft book. The beneficiary can write drafts ("checks") for any amount up to the full amount of the proceeds. This gives the beneficiary time to make important financial decisions, while their funds are secure and earn continuous interest. There are no monthly service fees or per check charges and additional checks can be ordered at no cost, but fees apply for some special services including returned checks, stop payment orders and copies of statements/checks.

 

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When and how can the funds in an Alliance Account be accessed?

The funds in the Alliance Account are available immediately. Beneficiaries may simply use the enclosed drafts (“checks”) to access the account at anytime. 

 

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Is the money secure?

Yes. Alliance Account funds are backed by the financial strength of The Prudential Insurance Company of America and State Guaranty Associations.  The Alliance Account is not a bank account or a bank product, and therefore, is not FDIC insured.

 

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Do the funds in the account earn interest?

Yes.  The funds in an Alliance Account begin earning interest immediately.  Interest is compounded daily and credited every month.  The interest rate may change, but not more than once a month.

 

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How long can the funds remain in an Alliance Account?

Beneficiaries can leave the money in the Alliance Account for as long as they want.  One of the benefits of the Alliance Account that customers like most is the time it allows them to consider their options.  Important financial decisions – even under the best circumstances – should not be made quickly. Beneficiaries who receive a lump sum payment can take advantage of no cost professional financial advice through the Beneficiary Financial Counseling service. You can find more information about BFCS on our Beneficiary Financial Counseling page.

Open Solutions Inc. is the Service Provider of the Prudential Alliance Account Settlement Option, a contractual obligation of The Prudential Insurance Company of America, located at 751 Broad Street, Newark, NJ 07102-3777.  Check clearing is provided by JPMorgan Chase Bank, N.A. and processing support is provided by First Data Payment Services (FDPS).  Alliance Account balances are not insured by the Federal Deposit Insurance Corporation (FDIC).  Alliance Account funds are backed by the financial strength of The Prudential Insurance Company of America and State Guaranty Associations. Open Solutions Inc., JPMorgan Chase Bank, N.A., and First Data Payment Services are not Prudential Financial companies.

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