Sweep Program

Our Insured Bank Deposit Sweep Program allows eligible ARC clients to obtain up to $5,000,000 of FDIC insurance⁴ for an individual account and $10,000,000 of FDIC insurance⁴ for a joint account, in addition to existing $250,000 SIPC coverage⁴, for total coverage of $5,250,000 for individual accounts and $10,250,000 for joint accounts.

Clients continue earning the same competitive interest rates¹ currently applied to cash held in ARC accounts. ARC 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. Individual account cash balances above $5,250,000 and joint account cash balances above $10,250,000 remain subject to safeguarding under the SEC's Customer Protection Rule 15c3-3, backed by the firm's equity capital, which is $22.3 billion².

Program Benefits

• Competitive interest rate¹, same as for cash deposits in your ARC account.
• Convenience of having your ARC account cash balance³, FDIC-insured deposits and investments appear on one statement.
• Excess cash above the program limit of $5,000,000 for an individual account and $10,000,000 for a joint account remains at ARC and is protected under client protection regulations. Competitor programs often include a spill-over bank for excess funds, which may not be FDIC-insured.

Who Is Eligible?

• ARC Pro accounts that are Individual or joint accounts without a designated transfer-on-death beneficiary, ARC Pro accounts that are IRAs (excluding ARC Asset Management IRAs) and organizational accounts are eligible to participate in the program.
• In the future ARC may, at its discretion, add additional account types to the program.
• Eligible ARC clients can enroll in the program by logging into their account and accessing "Insured Bank Deposit Sweep Program" under the account settings option. Activation generally takes place overnight.

How It Works

• When you join the Insured Bank Deposit Sweep Program, deposits are made on your behalf into interest-bearing accounts at one or more FDIC-insured banks within the program. If your program balance nears the FDIC limit at one of these banks, additional cash is deposited at the next bank on a list of approved banks, thereby ensuring clients don't exceed current limits. By using multiple banks versus a single bank, the program can provide FDIC insurance for your deposits up to $5,000,000 for an individual account and $10,000,000 for a joint account.
• Eligible cash balances consist of USD free credits, generally defined as cash in your ARC account in excess of margin requirements and short stock value, above the first $250,000 reserved for SIPC coverage and up to the program limit of $5,000,000 for an individual account and $10,000,000 for a joint account. We designed our proprietary sweep algorithm to seamlessly integrate with your ARC account and optimize FDIC-insurance coverage without disrupting your regular trading activity. The daily sweep computation factors in your USD cash, account equity, margin requirements, short stock value, projected cash settlements, and initial $250,000 SIPC buffer to determine the maximum free credit excess to sweep.

FDIC Insurance

FDIC insurance limits apply to all 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 that clients monitor the assets they have at all banks and opt out of banks on the ARC Priority Bank List where clients have assets not known to ARC, so that ARC 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, FDIC website.