Interest and Financing

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 20170921
Currency
Benchmark (BM)
Rate
USD
Fed Funds Effective (Overnight Rate)
1.160*%
USD
11 am GMT USD LIBOR (used only for USD-CFDs, Gold and Silver Borrow Fees)
1.179*%
AUD
RBA Daily Cash Rate Target
1.750*%
CAD
Bank of Canada Overnight Lending Rate
1.015*%
CHF
Swiss Franc LIBOR (Spot-Next rate)
0.000%
CNY/CNH
CNH HIBOR Overnight Fixing Rate (TMA)
2.076*%
CZK
Prag ON Interbank Offered Rate
0.280*%
DKK
Danish Tom/Next Index
0.000%
EUR
EONIA (Euro Overnight Index Average)
0.000%
GBP
GBP LIBOR (Overnight Rate)
0.034*%
HKD
HKD HIBOR (Overnight rate)
0.092*%
HUF
Budapest Interbank Offered Rate
0.020*%
ILS
Tel Aviv Interbank Offered O/N Rate
0.239*%
INR
Central Bank of India Base Rate
9.700*%
JPY
JPY LIBOR (Spot-Next rate)
0.000%
KRW
Korean Won KORIBOR (1 week)
1.250*%
MXN
Mexican Interbank TIIE (28 day rate)
7.128*%
NOK
Norwegian Overnight Weighted Average
0.334*%
NZD
New Zealand Dollar Official Cash Daily Rate
2.000*%
PLN
WIBOR (Warsaw Interbank Overnight Rate)
1.549*%
RUB
RUONIA (Ruble Overnight Index Average)
7.790*%
SEK
SEK STIBOR (Overnight Rate)
0.000%
SGD
Singapore Dollar SOR (Swap Overnight) Rate
0.551*%
ZAR
South Africa Benchmark Overnight Rate on Deposits (Sabor)
6.915%
Prior Period Benchmark Rates


IB accrues interest on a daily basis and posts actual interest monthly on the 3rd 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.

Please note that IBSJ does not pay credit interest.


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.