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:
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.
