Is interest income earned by non-U.S persons under the Insured Bank Deposit Sweep Program subject to withholding taxes?

Funds will be withdrawn from the last position bank with funds first.

Please Note…

The 1042-S tax form is a document used to report a foreign person's U.S. source income that is subject to withholding. In general, foreign persons who do not have U.S. source dividend or interest income will not receive a 1042-S form…

Interest paid under the Insured Bank Deposit Sweep Program to U.S. persons is treated the same way as any other interest earned by the client. The interest is not subject to withholding if the client has a valid Form W-9 on record and is not subject to back-up withholding by the IRS. It is taxable when credited to the client's account and reported on line 1 of the annual Form 1099-INT…

No, the Insured Bank Deposit Sweep Program is not available to IBKR Lite clients.

Information on the Insured Bank Deposit Sweep Program can be found on our website…