By joining the Insured Bank Deposit Sweep Program, eligible IB clients can obtain up to $2,500,000 of FDIC insurance in addition to the existing $250,000 SIPC coverage for total coverage of $2,750,000. Clients continue earning the same competitive interest rates currently applied to cash held in IB accounts. IB sweeps each participating client's free credit balances daily to one or more banks, up to $246,500 per bank, allowing for the accrual of interest and keeping within the FDIC protected threshold. Cash balances above $2,750,000 remain subject to safeguarding under the SEC's Customer Protection Rule 15c3-3, backed by the firm's equity capital, which exceeds $6 billion.
FDIC Insurance
FDIC insurance limits apply to all of your eligible deposits at a bank. The FDIC insurance limit for all ownership categories in the Insured Bank Deposit Sweep Program is $250,000 per program bank. This is why it is important clients monitor the assets they have at all banks and opt out of banks on the Priority Bank List so they may ensure IB does not sweep otherwise eligible balances into that bank. If you have other deposits at one or more of our program banks, you may exclude any bank from holding your program balances so you do not exceed current FDIC limits. For more information about FDIC coverage and different FDIC-defined ownership categories, visit the FDIC website.