Hi all,
Have you guys for notifications from IB on insured bank deposit sweep program. May I have your thoughts ( is it worthy to enroll). What I found weird is, there is no mention of additional charges, but they are ready to cover up to 2,500,000 FDIC insurance in Austin to 250000 with SPIC…
Cheers
M
Yes, I got the message too. From what I understand, they distribute your excess cash (over 250k) to other banks (up to 10, so you get 10x 250k insurance coverage). I didn’t see any fees either for this service, and in my opinion it’s good if you have so much cash. But that shouldn’t happen in the first place; why keep 2.5M in cash?!
Hi @SwissDan , in 2021 it was a non-sense, but in 2023 the interest rates for cash is comparable with the returns of saving accounts or bonds in white list:
Source: IBKR Interest rates
Do we even have access to this program with an IBUK (UK branch) account?
Potentially it could also reduce your assets considered US Situs for estate tax purposes. Cash at a US broker is US Situs. Cash at a US bank is not.