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 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 UKL Total
Ending Settled Cash -500,000 0 -100,000 -600,000

Tier Balance Cash Interest Calculation
100,000 -100,000 6.94 [100,000 x (1.00% + 1.50%)/360]
100,000 - 1,000,000 -500,000 27.78 [500,000 x (1.00% + 1.00%)/360]
1,000,000 0.00 0.00
Debit interest charged (securities) 28.93 (34.72 x 500,000/600,000)
Debit interest charged (UKL) 5.79 (34.72 x 100,000/600,000)



Example 2 - Interest Charged to You on a Negative Cash Balance


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


Statement Reflects
GBP Securities Commodities UKL Total
Ending Settled Cash -70,000 10,000 -100,000 -160,000
Commodity Maintenance Margin   0
Commodity Option Value   0    

Calculate interest on universal account balance -160,000
Tier Balance Cash Interest Calculation
< 65,000 65,000 10.58 [65,000 x (4.439%+1.50%)/365]
65,000 - 650,000 95,000 14.16 [95,000 x (4.439%+1.00%)/365]
> 650,000 0.00 0.00  
Debit interest charged (securities) 9.28 (24.74 x 60,000/160,000)
Debit interest charged (UKL) 15.46 (24.74 x 100,000/160,000)



Example 3 - Interest Charged to You (EUR) on a net Negative Cash Balance


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


Statement Reflects
EUR Securities Commodities UKL Total
Ending Settled Cash -50,000 20,000 20,000 -10,000
Commodity Maintenance Margin   0    
Commodity Option Value   0    

Calculate interest on a net negative (debit) balance of 10,000
Tier Balance Cash Interest Calculation
750,000 -10,000 0.99 [10,000 x (2.08%+1.50%)/360]
750,000 - 750,000 0.00 0.00  
750,000 0.00 0.00  
Debit interest charged (securities) 0.99  
Credit interest paid (UKL) 0.00 No credit interest is paid



Example 4 - Interest Calculation on Negative CHF Cash Balance


When you borrow money in CHF, interest will be calculated as follows:


Statement Reflects
CHF Securities Commodities UKL Total
Ending Settled Cash -500,000 0.00 -100,000 -600,000

Tier Balance Cash Interest Calculation
100,000 -100,000 4.17 [100,000 x (0.00% + 1.50%)/360]
100,000 - 1,000,000 -500,000 13.89 [500,000 x (0.00% + 1.00%)/360]
1,000,000 0.00 0.00  
Debit interest charged (securities)   15.05 (18.06 x 500,000/600,000)
Debit interest charged (UKL)   3.01 (18.06 x 100,000/600,000)