The Insured Bank Deposit Sweep Program systematically allocates your cash across multiple program banks to ensure that your eligible balances are fully protected.

For example, a deposit of $750,000 to an individually registered IB account, in which there are no margin requirements and no short stock positions, will be protected as follows: the first $250,000 will be held at IB (subject to SEC-mandated safeguards plus SIPC protection) and the remaining $500,000 will be spread across three program banks. $246,500 will be swept to each of the first two program banks and the remaining $7,000 will be swept to a third program bank. Sweeping only $246,500 rather than the respective FDIC coverage limit of $250,000 helps to ensure that any accrued (unpaid) interest is also protected by FDIC. Under this example, a subsequent deposit of an additional $50,000 will be automatically swept to the third program bank.

Priority Bank List - TBD

IB establishes contracts with multiple banks, which are included in one or more bank priority lists. Your account's legal address of record determines which list is used to determine the order in which the eligible cash in your brokerage account will be deposited into interest-bearing deposit accounts at one or more of the banks set forth on the predetermined list.

You may not change the order of the banks on the bank priority list. However, you may at any time designate a bank as ineligible to receive your funds. This will result in funds not being deposited into this bank or, if already there, IB will remove those funds from that bank and designate the bank as ineligible to receive future deposits.

You must monitor the total amount of cash on deposit with each program bank. This total includes your Insured Bank Deposit Sweep Program balances and any other FDIC-eligible deposits you may hold at the same program bank in the same ownership category.

To calculate your own estimated deposit insurance, see the FDIC Estimator at https://www5.fdic.gov/edie/calculator.html.

If you exceed the FDIC coverage limit at a bank assigned to hold your deposits, you can opt out of a specific bank via the tools in Account Management.

Your program deposits will be displayed on your daily Activity Statement.

No, securities and cash held in a brokerage account are not eligible for FDIC insurance coverage. However, in addition to IB's safeguards under the SEC's Customer Protection Rule, brokerage accounts are protected by the Securities Investor Protection Corporation ("SIPC"). SIPC protects a customer's brokerage account if a brokerage firm is closed due to bankruptcy or to other financial difficulties and customer assets are missing from accounts. SIPC protects a customer's brokerage account up to $500,000 in account equity, including a sub-limit of $250,000 on claims for cash.

You will earn interest at IB's published rates based on your total settled cash balances, whether your cash is held in your IB account or in program deposits. IB achieves this by deducting fees paid to IB and to a third-party administrator from the interest paid by the program banks. Interest on program balances will accrue daily from the day funds are deposited into a program bank through the business day preceding the date of withdrawal from that bank. Interest will be credited monthly. The specific program bank assigned to your account does not impact the interest rate you receive.

Free credit balances in excess of $250,000 will be swept to one or more banks in the program. Free credit generally is defined as USD cash in your IB account in excess of margin requirements and short stock value, within the minimum and maximum balance criteria for the program, calculated as of the close of business each day and swept into the program on the next business day. The first $250,000 remaining at IB is protected by SIPC.

$2,500,000. Combined with existing SIPC coverage on your first $250,000, your total available insurance will cover up to $2,750,000. 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.

You can opt out of a particular bank on your list in Account Management.

Yes, funds are redeemed automatically from the sweep before the settlement date of the trade. There is no disruption of trading activity; funds move in and out as the trading happens.