What happens if interest payments make my balance at a particular bank go over the maximum for the Insured Bank Deposit Sweep Program?

The Insured Bank Deposit Sweep Program allows clients to sweep excess funds above $250,000 from their IBKR accounts to participating FDIC-insured banks. Doing so allows for a client to maintain SIPC coverage on up to $250,000 of funds at IBKR as well as receive FDIC insurance on the funds swept. As IBKR caps the sweep at $246,500 ($493,000 for joint accounts) per participating bank, swept deposits receive the benefit of full FDIC coverage…

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$5,000,000 ($10,000,000 for joint accounts) is the maximum balance that can be swept into the Insured Bank Deposit Sweep Program. Combined with existing SIPC coverage on your first $250,000, your total available insurance will cover up to $5,250,000 ($10,250,000 for joint accounts). Cash balances above $5,250,000 ($10,250,000 for joint accounts) remain subject to safeguarding under the SEC's Customer Protection Rule 15c3-3, backed by the firm's equity capital (see our…

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…