Interest and Financing

Overview
Interest Paid to You
Interest Charged to You
IB CFDs Interest
Calculations
Examples

Overview

Interactive Brokers uses internationally recognized benchmarks on overnight deposits as a basis for determining interest rates. We then apply a spread around the benchmark interest rate ("BM") in tiers where larger cash balances receive increasingly better rates, to determine an effective rate. The spreads and effective rates on credit balances (Interest Paid to You), debit balances (Interest Charged to You), short sale proceed balances (Interest Paid to You) and IB CFDs can be found using the tabs above.

Use the Interest Rate Calculator on the Interest Paid to You and Interest Charged to You pages to quickly calculate the blended-rate interest on your balances.

The current day benchmarks are as follows:

Benchmark Rates as of 20120131
Currency	Benchmark (BM)	Rate
USD	Fed Funds Effective (Overnight Rate)	0.110%
USD	11 am GMT USD LIBOR (used only for Gold and Silver Borrow Fees)	0.140%
AUD	AUD Australian Dollar LIBOR (Spot-Next rate)	4.408%
CAD	CAD LIBOR (Overnight rate)	1.022%
CHF	Swiss Franc LIBOR (Spot-Next rate)	0.037%
EUR	EONIA (Euro Overnight Index Average)	0.380%
GBP	GBP LIBOR (Overnight Rate)	0.574%
HKD	HKD HIBOR (Overnight rate)	0.098%
HUF	Budapest Interbank Offered Rate	6.300%
ILS	Tel Aviv Interbank Offered O/N Rate	2.520%
INR	India SBI Base Rate	11.750%
JPY	JPY LIBOR (Spot-Next rate)	0.107%
KRW	Korean Won KORIBOR (1 week)	3.270%
MXN	Mexican Interbank TIIE (28 day rate)	4.793%
NOK	NOK Tomorrow Next Deposit	1.550%
NZD	New Zealand Dollar Official Cash Daily Rate	2.500%
SEK	SEK STIBOR (Overnight Rate)	1.915%
SGD	Singapore Dollar (O/N swap) Rate	0.437%
Prior Period Benchmark Rates

IB accrues interest on a daily basis and posts actual interest monthly on the 3^rd business day of the following month. For detailed examples on how we calculate interest, click here. For information on how to read interest on your statement, click here.

Interest Benchmark Definitions
Fed Funds Effective	(USD only) is the volume weighted average of the transactions processed through the Federal Reserve between member banks. It is intended to reflect the best estimate of interbank financing activity for Reserve Bank members and is the reference for many short term money market transactions in the broader market.
LIBOR	(many currencies) stands for London Inter-Bank Offered Rate. It is a daily fixing for deposits with durations from overnight to 1 year and is determined by a group of large London banks. It is the most widely used measurement for interest rates on most currencies outside the domestic market(s).
EONIA	(EUR only) is the global standard for overnight Euro deposits and is determined by a weighted average of the actual transactions between major continental European banks mediated through the European Central Bank.
HIBOR	(HKD only) is a daily fixing based on a group of large Hong Kong banks. The same methods and durations are set as for LIBOR currencies.
KORIBOR	(KRW only) is an average of the leading interest rates for KRW as determined by a group of large Korean banks. The benchmark utilizes the KORIBOR with 1 week maturity.
STIBOR	(SEK only) is a daily fixing based on a group of large Swedish banks. The same methods and durations are set as for LIBOR currencies.
TIIE	(MXN only) is the interbank "equilibrium" rate based on the quotes provided by money center banks as calculated by the Mexican Central Bank. The benchmark TIIE is based on 28-day deposits so is atypical as a measure for short term funds (most currencies have an overnight or similar short term benchmark).
Overnight	(O/N) rate is the most widely used short term benchmark and represents the rate for balances held from today until the next business day.
Spot-Next	(S/N) refers to the rate on balances from the next business day to the business day thereafter. Due to time zone and other criteria, Spot-Next rates are sometimes used as the short-term reference.
Day-Count conventions:	It is beyond the scope of this document to describe day-count conventions and their use in interest calculations. IB conforms to the international standards for day-counting wherein deposits rates for most currencies are expressed in terms of a 360 day year, while for exceptional currencies (ex: GBP) the convention is a 365 day year.

http://www.interactivebrokers.com/en/p.php?f=interest&p=overview

When calculating rates, keep in mind that IB uses a blended rate based on the tiers below. For example, for a balance over 100,000 USD, the first 10,000 is paid at the Tier I rate, the next 90,000 at the Tier II rate, etc. See the Calculations and Examples page for more details.

IB accrues interest on a daily basis and posts actual interest monthly on the 3rd business day of the following month.

The tiers which interest is based upon may change from time-to time without prior notification to customers. Such adjustments are done periodically to adjust for changes in currency rates.

Interest Paid to You on Positive (Credit) Cash Balances

Balance

Calculate Blended Rate

	Cash	Interest Rate	Interest Paid



Total

Your blended rate for
=

The interest calculator is based on information that we believe to be accurate and correct, but neither Interactive Brokers LLC nor its affiliates warrant its accuracy or adequacy and it should not be relied upon as such. Neither IB nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this calculator.

BM = Benchmark Rate

	Balance Cutoffs		Amount Paid on Balances
Currency	Tier I	Tier II	Between the Tier I and II Cutoffs	Above the Tier II Cutoff
USD	10,000	100,000	0% (BM - 0.5%)	0% (BM - 0.25%)
AUD	10,000	100,000	3.908% (BM - 0.5%)	4.158% (BM - 0.25%)
CAD	10,000	100,000	0.522% (BM - 0.5%)	0.772% (BM - 0.25%)
CHF	9,000	90,000	0% (BM - 0.5%)	0% (BM - 0.25%)
EUR	7,500	75,000	0% (BM - 0.5%)	0.13% (BM - 0.25%)
GBP	6,500	65,000	0.074% (BM - 0.5%)	0.324% (BM - 0.25%)
HKD	78,000	780,000	0% (BM - 0.75%)	0% (BM - 0.5%)
HUF	2,200,000	No Tier II	3.3% (BM - 3%)	3.3% (BM - 3%)
ILS	N/A⁽¹⁾	N/A⁽¹⁾	0%⁽¹⁾	0%⁽¹⁾
INR	N/A⁽²⁾	N/A⁽²⁾	0%⁽²⁾	0%⁽²⁾
JPY	800,000	8,000,000	0% (BM - 0.5%)	0% (BM - 0.25%)
KRW	12,000,000	120,000,000	1%	1.25%
MXN	140,000	1,400,000	0.793% (BM - 4%)	1.293% (BM - 3.5%)
NOK	60,000	600,000	0% (BM - 2.5%)	0% (BM - 2%)
NZD	14,000	140,000	0% (BM - 2.5%)	0.75% (BM - 1.75%)
SEK	70,000	700,000	1.415% (BM - 0.5%)	1.665% (BM - 0.25%)
SGD	N/A⁽³⁾	N/A⁽³⁾	0%⁽³⁾	0%⁽³⁾

Interest Paid to You on Short Sale Proceeds Cash Balances

Balance

Calculate Blended Rate

	Cash	Interest Rate	Interest Paid




Total

Your blended rate for
=

BM = Benchmark Rate

	Balance Cutoffs			Amount Paid on Balances
Currency	Tier I	Tier II	Tier III	Above Tier I	Between the Tier II and III Cutoffs	Above the Tier III Cutoff
USD	100,000	1,000,000	3,000,000	0% (BM - 1.25%)	0% (BM - 0.5%)	0% (BM - 0.25%)
CAD	100,000	1,000,000	3,000,000	0% (BM - 1.75%)	0% (BM - 1.1%)	0.122% (BM - 0.9%)
CHF	90,000	No Tier II	No Tier III	0% (BM - 2.25%)	0% (BM - 2.25%)	0% (BM - 2.25%)
EUR	75,000	No Tier II	No Tier III	0% (BM - 2.25%)	0% (BM - 2.25%)	0% (BM - 2.25%)
GBP	65,000	No Tier II	No Tier III	0% (BM - 2.25%)	0% (BM - 2.25%)	0% (BM - 2.25%)
SEK	700,000	No Tier II	No Tier III	0% (BM - 2.25%)	0% (BM - 2.25%)	0% (BM - 2.25%)
AUD	100,000	No Tier II	No Tier III	2.158% (BM - 2.25%)	2.158% (BM - 2.25%)	2.158% (BM - 2.25%)
HKD	780,000	No Tier II	No Tier III	0% (BM - 2.25%)	0% (BM - 2.25%)	0% (BM - 2.25%)

Notes:

Minimum interest rate on credit cash balances is 0%. Interest charges will never be applied to credit cash balances.
Costs for position borrowing of stocks with special considerations (for example hard to borrow instruments) are usually higher than for normal availability stocks. These additional costs will be passed on in the form of lower short stock credit interest. Please note that this may lead to a net debit short stock credit interest in the event that the costs to borrow exceed the interest earned. In order to view the indicative short stock interest rates for a specific stock, IB recommends that customers utilize the Short Stock (SLB) Availability tool located under Account Management/Tools.

¹The same rate applies to all balance amounts for ILS; there are no tiers.
²The same rate applies to all balance amounts for INR; there are no tiers.
³The same rate applies to all balance amounts for SGD; there are no tiers.

http://www.interactivebrokers.com/en/p.php?f=interest&p=interestpaid

Interest Charged to You on Negative (Debit) Cash Balances

When calculating rates, keep in mind that IB uses a blended rate based on the tiers below. For example, for a balance over 1,000,000 USD, the first 100,000 is charged at the Tier I rate, the next 900,000 at the Tier II rate, etc. See the Calculations and Examples page for more details.

IB accrues interest on a daily basis and posts actual interest monthly on the 3rd business day of the following month.

The tiers which interest is based upon may change from time-to time without prior notification to customers. Such adjustments are done periodically to adjust for changes in currency rates.

Balance

Calculate Blended Rate

	Debit Balance	Interest Rate	Interest Charged




Total

Your blended rate for
=

BM = Benchmark Rate

	Balance Cutoffs			Amount Charged on Balances:
Currency	Tier I	Tier II	Tier III		Below Tier I Cutoff	Between Tier I & Tier II Cutoffs	Between Tier II & Tier III Cutoffs	Above Tier III Cutoff
USD	100,000	1,000,000	3,000,000		1.61% (BM + 1.5%)	1.11% (BM + 1%)	0.61% (BM + 0.5%)	Greater of 0.5% or (BM + 0.25%)⁽¹⁾
AUD	100,000	1,000,000	No Tier III		5.908% (BM + 1.5%)	5.408% (BM + 1%)	4.908% (BM + 0.5%)⁽¹⁾	4.908% (BM + 0.5%)⁽¹⁾
CAD	100,000	1,000,000	No Tier III		2.522% (BM + 1.5%)	2.022% (BM + 1%)	1.522% (BM + 0.5%)⁽¹⁾	1.522% (BM + 0.5%)⁽¹⁾
CHF	90,000	900,000	No Tier III		1.537% (BM + 1.5%)	1.037% (BM + 1%)	0.537% (BM + 0.5%)⁽¹⁾	0.537% (BM + 0.5%)⁽¹⁾
EUR	75,000	750,000	No Tier III		1.88% (BM + 1.5%)	1.38% (BM + 1%)	0.88% (BM + 0.5%)⁽¹⁾	0.88% (BM + 0.5%)⁽¹⁾
GBP	65,000	650,000	No Tier III		2.074% (BM + 1.5%)	1.574% (BM + 1%)	1.074% (BM + 0.5%)⁽¹⁾	1.074% (BM + 0.5%)⁽¹⁾
HKD	780,000	7,800,000	No Tier III		1.598% (BM + 1.5%)	1.098% (BM + 1%)	0.598% (BM + 0.5%)⁽¹⁾	0.598% (BM + 0.5%)⁽¹⁾
HUF	N/A⁽⁵⁾	N/A⁽⁵⁾	N/A⁽⁵⁾		11.3% (BM + 5%)	11.3% (BM + 5%)	11.3% (BM + 5%)⁽¹⁾	11.3% (BM + 5%)⁽¹⁾
ILS	N/A⁽⁴⁾	N/A⁽⁴⁾	N/A⁽⁴⁾		7.52% (BM + 5%)⁽⁴⁾	7.52% (BM + 5%)⁽⁴⁾	7.52% (BM + 5%)⁽⁴⁾	7.52% (BM + 5%)⁽⁴⁾
INR	N/A⁽³⁾	N/A⁽³⁾	N/A⁽³⁾		13.75%⁽³⁾	13.75%⁽³⁾	13.75%⁽³⁾	13.75%⁽³⁾
JPY	8,000,000	80,000,000	No Tier III		1.607% (BM + 1.5%)	1.107% (BM + 1%)	0.607% (BM + 0.5%)⁽¹⁾	0.607% (BM + 0.5%)⁽¹⁾
KRW	120,000,000	1,200,000,000	No Tier III		5.27% (BM + 2%)	4.77% (BM + 1.5%)	4.27% (BM + 1%)⁽¹⁾	4.27% (BM + 1%)⁽¹⁾
MXN	1,400,000	14,000,000	No Tier III		7.793% (BM + 3%)	6.793% (BM + 2%)	6.293% (BM + 1.5%)⁽¹⁾	6.293% (BM + 1.5%)⁽¹⁾
NOK	600,000	6,000,000	No Tier III		3.05% (BM + 1.5%)	2.55% (BM + 1%)	2.05% (BM + 0.5%)⁽¹⁾	2.05% (BM + 0.5%)⁽¹⁾
NZD	140,000	1,400,000	No Tier III		4% (BM + 1.5%)	3.5% (BM + 1%)	3.25% (BM + 0.75%)⁽¹⁾	3.25% (BM + 0.75%)⁽¹⁾
SEK	700,000	7,000,000	No Tier III		3.415% (BM + 1.5%)	2.915% (BM + 1%)	2.415% (BM + 0.5%)⁽¹⁾	2.415% (BM + 0.5%) ⁽¹⁾
SGD⁽¹⁾	N/A⁽²⁾	N/A⁽²⁾	N/A⁽²⁾		2.437% (BM + 2%) ⁽²⁾	2.437% (BM + 2%) ⁽²⁾	2.437% (BM + 2%)⁽²⁾	2.437% (BM + 2%)⁽²⁾

Notes:

[1] Under certain circumstances, balances greater than USD 100 million, or 100 times the Tier II balance reflected in non-USD currencies, or greater than 140,000,000 SGD may be subject to a service charge if not pre-arranged with us. These circumstances include:
a. Trades executed away from us and transferred into your account, creating a short cash balance in excess of the above criteria.
b. Withdrawals creating a short cash balance in excess of the above criteria.
[2] The same rate applies to all balance amounts for SGD; there are no tiers.
[3] The same rate applies to all balance amounts for INR; there are no tiers.
[4] The same rate applies to all balance amounts for ILS; there are no tiers.
[5] The same rate applies to all balance amounts for HUF; there are no tiers.

http://www.interactivebrokers.com/en/p.php?f=interest&p=interestcharged

IB UK CFD Contract Interest

Contract Interest is calculated daily on all open CFD positions held at the close of the trading session, and is applied based on trade volume as shown below:

		Balance Cutoffs		Contract Interest Charged/Paid on Open CFD Positions
Currency	Position	Tier I	Tier II		Below Tier I	Between Tier I and Tier II	Above Tier II
GBP	Long⁽¹⁾	65,000	650,000		2.074% (BM + 1.5%)	1.574% (BM + 1%)	1.074% (BM + 0.5%)
GBP	Short⁽²⁾	65,000	650,000		-0.926% (BM - 1.5%)	-0.426% (BM - 1%)	0.074% (BM - 0.5%)
EUR	Long⁽¹⁾	75,000	750,000		1.88% (BM + 1.5%)	1.38% (BM + 1%)	0.88% (BM + 0.5%)
EUR	Short⁽²⁾	75,000	750,000		-1.12% (BM - 1.5%)	-0.62% (BM - 1%)	-0.12% (BM - 0.5%)

Contract interest is always applied in the contract currency of the CFD, and is calculated using the formula:

Contract Interest = I x UPV x N/365

Where:
I	=	The Contract Interest rate
UPV	=	The Underlying Position Value, calculated as the CFD Daily Settlement Price x number of contracts.
N	=	The number of days for which the contract interest is being calculated.

The GBP Libor benchmark rate used to calculate the contract interest rates above can be found on the Overview page. Contract interest rates are determined by IB and may be adjusted from time to time at IB's discretion.

Stock Borrow Fee

An additional borrow charge is levied on short CFD Positions, determined for each stock individually based on market borrow rates. IB will provide non-binding, indicative borrow rates to clients. Borrow rates may change without notice over the life of the short position based on market conditions.

Notes:

[1] For long open positions, your account will be charged interest.
[2] For short open positions, your account will generally be paid interest, except in cases where the contract interest rate is negative. When the rate is negative, your account will be charged interest.

http://www.interactivebrokers.com/en/p.php?f=interest&p=interestcfd

Calculations

For questions about interest rate issues, please use the Inquiry Ticket or Chat (Funds & Banking) system located at the top of Account Management.

Calculations

Step 1

At the end of every day, IB looks at the following balances in each currency:

Cash balance in security sub-account ⁽¹⁾
Cash balance in commodity sub-account ⁽¹⁾
Collateral balance for settled short stock positions

The collateral balance per short stock is calculated by multiplying the prior day's closing price by an adjustment factor based on the currency, rounding this value up, then multiplying by the number of shares.

For example, the collateral balance on a USD-denominated security would be:

Collateral Balance = (stock A prior day closing price x 102%, rounded up to the nearest 1.00) x (number of shares stock A) + (stock B prior day closing price x 102%, rounded up) x (number of shares stock B)

The adjustments utilized by IB are as follows:

USD-denominated stock – multiply by 102%, round up to nearest 1.00

CAD-denominated stock – multiply by 102%, round up to nearest 0.50

EUR-denominated stock – multiply by 105%, round up to nearest 0.01

CHF-denominated stock – multiply by 105%, round up to nearest 0.01

GBP-denominated stock – multiply by 105%, round up to nearest 0.01

SEK-denominated stock – multiply by 105%, round up to nearest 0.01

AUD-denominated stock – multiply by 105%, round up to nearest 0.01

HKD-denominated stock – multiply by 105%, round up to nearest 0.01

These balances are reported on the Daily Statement under Ending Settled Cash.

Step 2

IB collects the overnight reference interest rate that will serve as the benchmark (BM) on which subsequent calculations are made. More information about these benchmarks is available here.

Step 3

IB calculates an Adjusted Cash Balance for the security sub-account by subtracting the short stock collateral value from the security sub-account Ending Settled Cash. Essentially, this pulls out the required collateral value derived from sales proceeds on short stock, since interest on these funds is calculated using different tiers.

AdjustedCash = EndingSettledCash - ShortStockCollateralValue

Step 4

For each of the three adjusted balances (adjusted security, commodity and short stock), we calculate how much money should be applied to each rate tier (see tier tables). Finally, we calculate the interest using the applicable rates (also from the tier tables):

Interest =	( Balance _tier1 Rate _tier1 / numberOfDaysInYear )*
	( Balance _tier2 Rate _tier2 / numberOfDaysInYear )*
	( Balance _tier3 Rate _tier3 / numberOfDaysInYear )*
	etc

The numberOfDaysInYear are based on industry standards for money market activity.

365: GBP, HKD, KRW
360: USD, CAD, EUR, CHF, JPY, AUD, SEK, NOK

Accruals

The results of the above calculations are booked to a special "Accrued Cash" sub-account, one for each currency. Accrued Cash has the following features and functions:

FUNDS FOR TRADING: accrued cash is applied to trading balances, both positively and negatively.
WITHDRAWALS: accrued cash does not affect Settled Cash balances and therefore cannot be withdrawn. Positive accrued cash balances do not increase the available funds for withdrawal. However, negative accrued cash will reduce the funds available for withdrawal. This avoids the problem of having closed accounts with negative balances.
PATTERN DAY TRADING: accrued cash does not count toward Pattern Day Trading minimum balance requirements.

Everyday, the new calculations for accrued interest are added to the cumulative accrued cash balances from the previous day.

Statements: Whenever the balance of accrued cash exceeds $1.00 (or USD equivalent), we will show the accrual on the Daily Statement. Accruals smaller than $1.00 are recorded in the IB systems but are not reported on the statements.

Final Posting

At the end of the month, or within the first few days of the following month, the following steps are taken:

IB recalculates all the interest amounts using the calculations above. The new calculation is usually identical to the original cash accruals but may vary by small amounts due to corrections in settled balances or rates.
IB determines the cumulative accrued cash for the previous month as the sum of the individual days.
IB reverses this amount in the Accrued Cash sub-account at the beginning of the following month. For example, if the accrued cash balance for July was positive, we apply a debit charge to accrued cash in early August.
Simultaneously, we book the final interest calculation from Step 1 above to the regular cash account. In effect, Steps 3 and 4 above convert "pending cash" to "actual cash."
These transactions⁽²⁾ are reported on the Monthly Statement. Click here for full explanations of our statements.

Trade Date versus Settlement Date (or Value Date)

In most large financial transactions, there is a time delay between the date on which the transaction is agreed to, and the date on which it settles, i.e, when the actual payment occurs. In the case of stocks (for example US stocks) there is a three business day settlement period. If the trade is executed on a Monday, under normal settlement conditions the actual transfer of money occurs on Thursday. If the trade occurs on Wednesday, three business days later crosses the weekend so normal settlement is the following Monday. Exchange and banking holidays the fall within the settlement period will push back the settlement date.

Why is Settlement Date Important?

Only settled money is considered for interest rate purposes. When one buys stock, one retains the rights to interest on the money until settlement date. Similarly, sellers only start to receive interest beginning on settlement date.

Settlement Dating is generally a minor consideration for stock, option, and future traders. However, due to the large amounts of capital involved, understanding the concept of Settlement Dating is critical to FOREX and fixed income (bond or money market) traders.

Notes:

[1] Please see Universal Account section of the Margin Overview page for description of account structure. Due to the different regulators -- CFTC for commodities and SEC for securities -- IB is not permitted to net the assets in a sub-account with those from the other sub-account.
[2] The new accrued cash shown after the above postings may not be zero. The residual balances reflect the continuing accruals for the first days of the current month. For example, if IB processes the final interest calculation on August 6, Accrued Cash will still show the activity from August 1 through August 6.

http://www.interactivebrokers.com/en/p.php?f=interest&p=interestcalculations

Examples

For questions about interest rate issues, please use the Inquiry Ticket or Chat system located at the top of Account Management.

For all below examples assume benchmark rates as follows:

Benchmark (BM)	Rate
US Dollar Fed Funds Effective	1.00%
EONIA (Euro Overnight Index Average)	2.080%
GBP LIBOR (Overnight Rate)	4.439%

To find the Tier Balance used with the benchmark interest rate, see the Interest Paid to You and Interest Charged to You tabs above and refer to the (BM - x.xx%) calculations.

Example 1 - Interest Paid to You (USD)

When you have an excess positive cash balance, we'll pay you daily interest on that balance as follows:

Statement Reflects
USD	Securities	Commodities	Total
Ending Settled Cash	50,000	0.00	50,000

Tier Balance	Cash	Interest	Calculation
< 10,000	10,000	0.00	(10,000 x 0/360)
10,000 – 100,000	40,000	0.56	[40,000 x (1.00%-0.50%)/360]
> 100,000	0.00	0.00
Credit interest received		0.56

Example 2 - Interest Charged to You (USD)

When you borrow money, we'll charge you daily interest on your borrowed money as follows:

Statement Reflects
USD	Securities	Commodities	Total
Ending Settled Cash	-500,000	0	-500,000

Tier Balance	Cash	Interest	Calculation
100,000	-100,000	6.94	[100,000 x (1.00% + 1.50%)/360]
100,000 - 1,000,000	-400,000	22.22	[400,000 x (1.00% + 1.00%)/360]
1,000,000	0.00	0.00
Debit interest charged		29.16

Example 3 - Interest Paid to You on Short Sale Proceeds

When you sell stock short and receive cash proceeds, we'll pay you daily interest on those proceeds as follows:

Statement Reflects
USD	Securities	Commodities	Total
Short Sales Proceeds	1,500,000	0	1,500,000
Excess Cash	150,000	0	150,000
Ending Settled Cash	1,650,000	0	1,650,000

Calculate interest on short stock proceeds value 1,500,000
Tier Balance	Cash	Interest	Calculation
< 100,000	100,000	0.00	No payment on balances < 100,000
100,000 - 1,000,000	900,000	0.00	[900,000 x (1.00%-1.25%)/360]
1,000,000 - 3,000,000	500,000	6.94	[500,000 x (1.00%-0.50%)/360]
Short credit interest received		6.94

Calculate interest on security account excess cash balance 150,000
Tier Balance	Cash	Interest	Calculation
< 10,000	10,000	0.00	(10,000 x 0/360)
10,000 - 100,000	90,000	1.25	[90,000 x (1.00%-0.50%)/360]
> 100,000	50,000	1.04	[50,000 x (1.00%-0.25%)/360]
Credit interest received		2.29

Example 4 - Interest Paid to You on Positive Cash Balances

When you have a positive cash balance in your securities and commodities accounts, we'll pay you daily interest on those balances as follows:

Statement Reflects
USD	Securities	Commodities	Total
Ending Settled Cash	50,000	20,000	70,000

Calculate interest on security account balance 50,000
Tier Balance	Cash	Interest	Calculation
< 10,000	10,000	0.00	(10,000 x 0/360)
10,000 - 100,000	40,000	0.56	[40,000 x (1.00%-0.50%)/360]
> 100,000	0.00	0.00
Credit interest received		0.56

Calculate interest on commodity account balance 20,000
Tier Balance	Cash	Interest	Calculation
< 10,000	10,000	0.00	(10,000 x 0/360)
10,000 – 100,000	10,000	0.14	[10,000 x (1.00%-0.50%)/360]
> 100,000	0.00	0.00
Credit interest received		0.14

Example 5 - Interest Charged to You on a Negative Cash Balance and Interest Paid to You on a Credit Balance

When you have a negative (debit) cash balance in your securities account and a positive (credit) balance in your commodities account, we'll charge you daily interest on the debit balance and pay you daily interest on the credit balance as follows:

Statement Reflects
GBP	Securities	Commodities	Total
Ending Settled Cash	-70,000	10,000	-60,000

Calculate interest on security account balance -70,000
Tier Balance	Cash	Interest	Calculation
< 70,000	70,000	11.39	[70,000 x (4.439%+1.50%)/365]
70,000 - 650,000	0.00	0.00
> 650,000	0.00	0.00
Debit interest charged		11.39

Calculate interest on commodity account balance 10,000
Tier Balance	Cash	Interest	Calculation
< 7,000	7,000	0.00	(7,000 x 0/365)
7,000 - 70,000	3,000	0.32	[3,000 x (4.439%-0.50%)/365]
> 70,000	0.00	0.00
Credit interest received		0.32

Example 6 - Interest Paid to You on Short Sale Cash Proceeds and Excess Cash in a Securities and Commodities Account

Statement Reflects
EUR	Securities	Commodities	Total
Short Cash Proceeds	70,000	-	70,000
Excess Cash	5,000	25,000	30,000
Ending Settled Cash	75,000	25,000	100,000

Calculate interest on short stock value 70,000
Tier Balance	Cash	Interest	Calculation
< 80,000	70,000	0.00	(70,000 x 0/360)
> 80,000	0.00	0.00
Short credit interest received		0.00

Calculate interest on security account balance 5,000
Tier Balance	Cash	Interest	Calculation
< 8,000	5,000	0.00	(5,000 x 0/360)
8,000 - 80,000	0.00	0.00
> 80,000	0.00	0.00
Credit interest received		0.00

Calculate interest on commodity account balance 25,000
Tier Balance	Cash	Interest	Calculation
< 8,000	8,000	0.00	(8,000 x 0/360)
8,000 - 80,000	17,000	0.75	[17,000 x (2.08%-0.50%)/360]
> 80,000	0.00	0.00
Credit interest received		0.75

Example 7 - Interest Paid to You on Short Sale Cash Proceeds and Excess Cash, and Interest Charged to You on a Debit Balance

In this example, you have securities short sale cash proceeds, and an Excess Cash (credit) balance in your Commodities account, but you also have a negative (debit) balance from borrowed cash. We'll charge you daily interest on the debit balance and pay you daily interest on the credit balance as follows:

Statement Reflects
USD	Securities	Commodities	Total
Short Sale Cash Proceeds	680,000	-	680,000
Borrowed Cash	(180,000)	-	(180,000)
Excess Cash	-	120,000	120,000
Ending Settled Cash	500,000	120,000	620,000

Calculate interest on short stock value 680,000
Tier Balance	Cash	Interest	Calculation
< 100,000	100,000	0.00	(100,000 x 0/360)
100,000 -1,000,000	580,000	0.00	[580,000 x (1.00%-1.25%)/360]
1M -3M	0.00	0.00
> 3M	0.00	0.00
Short credit interest received		0.00

Calculate interest on security account balance -180,000
Tier Balance	Cash	Interest	Calculation
< 100,000	100,000	6.94	[100,000 x (1.00% + 1.50%)/360]
100,000 - 1,000,000	80,000	4.44	[80,000 x (1.00% + 1.00%)/360]
1M – 3M	0.00	0.00
> 3M	0.00	0.00
Debit interest charged		11.38

Calculate interest on commodity account balance 120,000
Tier Balance	Cash	Interest	Calculation
< 10,000	10,000	0.00	(10,000 x 0/360)
10,000 - 100,000	90,000	1.25	[90,000 x (1.00%-0.50%)/360]
> 100,000	20,000	0.42	[20,000 x (1.00%-0.25%)/360]
Credit interest received		1.67

http://www.interactivebrokers.com/en/p.php?f=interest&p=interestexample