If you opt out of a bank holding funds, the bank’s balance and accrued interest will automatically sweep to the next bank on the list. The deposit balance at this next bank will add on your principal balance plus accrued interest (from the opt-out bank) and interest accrual will start over. If your overall balance in the program is at the $5,000,000 ($10,000,000 for joint accounts) program limit, the balance from the opt-out bank would return to IBKR and would be safeguarded under the SEC’s Customer Protection Rule 15c3-3.
What happens if I opt out of an individual bank holding my funds while participating in the Insured Bank Deposit Sweep Program?
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How is interest calculated on my cash balance deposited into the Insured Bank Deposit Sweep Program?
What happens if interest payments make my balance at a particular bank go over the maximum for the Insured Bank Deposit Sweep Program?
What is the maximum balance that can be swept into the Insured Bank Deposit Sweep Program?
How do I make sure my accounts do not exceed FDIC coverage limits when using the Insured Bank Deposit Sweep Program?