The Insured Bank Deposit Sweep Program is a service offered by Interactive Brokers (IBKR) that provides additional FDIC insurance coverage for eligible USD cash balances in client accounts. This program allows clients to obtain FDIC insurance beyond the standard $250,000 SIPC coverage.
Program Details
Coverage Limits
- Up to $5,000,000 of FDIC insurance for individual accounts
Up to $10,000,000 of FDIC insurance for joint accounts
This is in addition to the existing $250,000 SIPC coverage, bringing the total potential coverage to $5,250,000 for individual accounts and $10,250,000 for joint accounts
How it Works
- IBKR automatically sweeps each participating client's free credit balances daily to one or more FDIC-insured banks.
The program sweeps up to $246,500 per bank to stay within FDIC protected thresholds.
This systematic allocation across multiple banks ensures eligible balances are fully protected.
Interest Rates
- Clients continue to earn competitive interest rates on their Program Deposits at IBKR's published rates.
- Interest rates are based on the total settled cash balances, including cash held in the IBKR Account and in Program Deposits.
Eligibility
The program is available to the following account types held at IBLLC (the U.S. broker) or IB-UK (the introducing broker)
- US and foreign individual accounts
- Joint accounts (50/50 ownership only)
- IRA accounts
- Organization securities accounts
These accounts must have USD free credit cash balances above $250,000.
Foreign clients without a U.S. tax ID must provide a foreign tax ID or national ID number to be eligible.
The following account types are not eligible due to the complexity of FDIC rules:
- Individual accounts with a transfer on death provision
- Joint accounts with uneven ownership
- Trust accounts
Getting Started
Enrollment Process
To enroll in the Insured Bank Deposit Sweep Program:
1. Log into Client Portal.
2. Click the User menu (head and shoulders icon) and select Settings
3. Under Account Settings, find the Account Configuration section
4. Click Insured Bank Deposit Sweep Program
5. Review the list of participating banks and uncheck any you wish to exclude
6. Click the toggle button to update and click Continue
7. Read and sign the clearing agreement to authorize the program
Please Note: If the option is not visible in Client Portal, your account may not be eligible to participate at this time.
Viewing Bank Deposits and Interest Information
To view bank deposits and interest information:
1. Log in to Client Portal
2. Click Performance & Reports, then Statements
3. Select Default Statement Type "Activity" and Period "Daily"
4. Choose the desired Format and Language
5. Click RUN STATEMENT
In the Activity Statement, you will find
- The Insured Deposits by Bank section, showing the balance at each bank, the interest rate you are receiving, and the interest paid for that bank.
- A summary in the Cash Report section.
Additional Information
Important Considerations
- Any withdrawal of funds allocated to the Insured Bank Deposit Sweep Program is subject to an extra day of processing.
- Clients can opt out of specific banks or the entire program if desired.