Examples


For questions about interest rate issues, please use the Inquiry Ticket or Chat system located in the Support menu 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%
CHF LIBOR (Overnight Rate) (0.70)%
GBP LIBOR (Overnight Rate) 4.439%



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 UKL Total
Ending Settled Cash 50,000 0.00 10,000 60,000

Cash Interest Calculation
10,000 0.00 (10,000 x 0/360)
50,000 0.69 [50,000 x (1.00%-0.50%)/360]
Credit interest received (security) 0.58 (0.69 x 50,000/60,000)
Credit interest received (UKL) 0.11 (0.69 x 10,000/60,000)



Example 2 - 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 UKL Total
Ending Settled Cash 50,000 20,000 10,000 80,000
Commodity Maintenance Margin   0    
Commodity Option Value   0    

Calculate interest on the combined universal account balance
Cash Interest Calculation
10,000 0.00 (10,000 x 0/360)
70,000 0.97 [70,000 x (1.00%-0.50%)/360]
Credit interest received (security) 0.85 (0.97 x 70,000/80,000)
Credit interest received (UKL) 0.12 (0.97 x 10,000/80,000)



Example 3 - Interest Paid to You (EUR) on a net Positive Cash Balances


When your combined security and commodity accounts are positive (credit) and your UKL account is negative (debit) leading to a combined positive (credit) universal account balance, interest will be calculated as follows:


Statement Reflects
USD Securities Commodities UKL Total
Ending Settled Cash 200,000 30,000 -100,000 130,000
Commodity Maintenance Margin   10,000   10,000
Commodity Option Value   2,000   2,000
Adjusted Commodity   22,000   122,000

Calculate interest on universal account balance 130,000
Tier Balance Cash Interest Calculation
< 7,500 7,500 0.00 [7,500 x (0)/360]
> 7,500 114,500 5.03 [114,500 x (2.08%-0.50%)/360]
Credit interest paid (securities) 5.03
Debit interest charged (UKL) 0.00 No debit interest is charged



Example 4 - Interest Calculation on Positive CHF Cash Balances


When you have an excess positive cash balance in CHF, daily interest will be calculated as follows:


Statement Reflects
CHF Securities Commodities UKL Total
Ending Settled Cash 220,000 0.00 10,000 230,000

Cash Interest Calculation
100,000 0.00 (100,000 x 0/360)
130,000 -3.43 [130,000 x (-0.95%)/360]
Credit interest charged (security) -3.28 (-3.43 x 220,000/230,000)
Credit interest charged (UKL) -0.15 (-3.43 x 10,000/230,000)