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
The current day benchmarks are as follows:
Benchmark Rates as of 20170921
Fed Funds Effective (Overnight Rate)
11 am GMT USD LIBOR (used only for USD-CFDs, Gold and Silver Borrow Fees)
RBA Daily Cash Rate Target
Bank of Canada Overnight Lending Rate
Swiss Franc LIBOR (Spot-Next rate)
CNH HIBOR Overnight Fixing Rate (TMA)
Prag ON Interbank Offered Rate
Danish Tom/Next Index
EONIA (Euro Overnight Index Average)
GBP LIBOR (Overnight Rate)
HKD HIBOR (Overnight rate)
Budapest Interbank Offered Rate
Tel Aviv Interbank Offered O/N Rate
Central Bank of India Base Rate
JPY LIBOR (Spot-Next rate)
Korean Won KORIBOR (1 week)
Mexican Interbank TIIE (28 day rate)
Norwegian Overnight Weighted Average
New Zealand Dollar Official Cash Daily Rate
WIBOR (Warsaw Interbank Overnight Rate)
RUONIA (Ruble Overnight Index Average)
SEK STIBOR (Overnight Rate)
Singapore Dollar SOR (Swap Overnight) Rate
South Africa Benchmark Overnight Rate on Deposits (Sabor)
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
here. For information on how to read interest on your statement,
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.
(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).
(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.
(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.
(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.
(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.
(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).
(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.
(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
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.