Examples

For questions about interest rate issues, please use the Inquiry Ticket or Chat system located in the Support menu of Account Management / Client Portal. When determining the quoted spread, IBKR will use the set benchmark rate or a benchmark rate of 0 for all benchmark rates less than 0.

For all below examples assume benchmark rates as follows:


Benchmark (BM) Rate
US Dollar Fed Funds Effective 2.18%
GBP LIBOR (Overnight Rate) 0.62%
EONIA (Euro Overnight Index Average) 0.0%
CHF LIBOR (Overnight Rate) 0.0%



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

Interest Calculation

US Dollar Fed Funds Effective: 2.18%

Tier Balance Tier Rate Cash Interest in USD Calculation
0 - 100,000 1.50% -100,000 10.22 100,000 x (2.18% + 1.50%)/360
100,000.01 - 1,000,000 1.00% -500,000 44.17 500,000 x (2.18% + 1.00%)/360
1,000,000.01 - 3,000,000 0.50% 0 0
> 3,000,000 .30% 0 0
Total 54.39
 
Distribution Interest in USD Calculation
Debit interest charged (securities) 45.32 54.39 x (500,000/600,000)
Debit interest charged (UKL) 9.06 54.39 x (100,000/600,000)
Total 54.39



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

GBP LIBOR (Overnight Rate): 0.62%

Tier Balance Tier Rate Cash Interest in GBP Calculation
0 - 80,000 1.50% 80,000 4.64 80,000 x (0.62%+1.50%)/365
80,000.01 - 800,000 1.00% 80,000 3.55 80,000 x (0.62%+1.00%)/365
> 800,000 0.50% 0 0  
Total 8.19
 
Distribution Interest in GBP Calculation
Debit interest charged (securities) 4.095 8.19 x (80,000/160,000)
Debit interest charged (UKL) 4.095 8.19 x (80,000/160,000)
Total 8.19



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

EONIA (Euro Overnight Index Average): 0.00%

Tier Balance Tier Rate Cash Interest in EUR Calculation
0 - 100,000 1.50% -10,000 0.42 10,000 x (0.0%+1.50%)/360
100,000.01 - 1,000,000 1.00% 0 0  
> 1,000,000 0.50% 0 0  
Total 0.42
 
Distribution Interest in EUR Calculation
Debit interest charged (securities) 0.42
Credit interest paid (UKL) 0 No credit interest is paid
Total 0.42



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 -100,000 -600,000

Interest Calculation

CHF LIBOR (Overnight Rate): 0.00%

Tier Balance Tier Rate Cash Interest in CHF Calculation
0 - 100,000 1.50% -100,000 4.17 100,000 x (0.00% + 1.50%)/360
100,000.01 - 1,000,000 1.00% -500,000 13.89 500,000 x (0.00% + 1.00%)/360
> 1,000,000 0.50% 0 0  
Total 18.06
 
Distribution Interest in CHF Calculation
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)
Total 18.06