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Fixed Income & Cash Management



Bank Deposit Sweep Program - FAQs










Can I change the order of the banks?

No, you may not change the order of the banks on the bank priority list.


Can I designate a bank as being ineligible to receive my funds?

Yes, you may designate a bank as ineligible to receive your funds at any time. This will result in funds not being deposited into this bank.


What will happen if my funds have already been deposited into a bank that I deem as ineligible?

If your funds are already there (have already been deposited), PT 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.


How can I figure out how much I have for my estimated deposit insurance?

To calculate your own estimated deposit insurance, you can use the the FDIC's FDIC Estimator (called EDIE the Estimator) on the FDIC website 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. (Your Activity Statements can be downloaded in Account Management under the Reports tab.)









No, securities and cash held in a brokerage account are not eligible for FDIC insurance coverage.

However, in addition to PT'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 PT's published rates based on your total settled cash balances, whether your cash is held in your PT account or in program deposits. PT achieves this by deducting fees paid to its clearing firm 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.

Please note that 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 PT 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 PT is protected by SIPC.










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 carrying brokers equity capital exceeding $6 billion.









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









In order to have funds available in time to settle a trade, your funds will automatically be redeemed from your sweep account before the settlement date of the trade.

Your trading activity should not be disrupted as your funds will move in and out as you trade (when trading acctivity happens).






View Insured Certificate of Deposit - CD Disclosures (These CDs are different from the Sweep Program.)





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For more information about the risks of trading FDIC insured CDs or other fixed income securities,1 please call us at 919-719-7200 today.



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