Interactive Brokers (IBKR) has specific minimum balance requirements and policies for earning interest on cash balances. These requirements vary based on currency and account type:
- General Requirements:
- No interest is paid on the first USD 10,000 (or equivalent in other currencies) of cash in your account.
- Interest is earned on positive settled cash balances held in the securities segment of an account.
- Cash held in the commodities segment does not earn interest.
- Currency-Specific Thresholds:
- USD: Interest is paid on balances above USD 10,000
- EUR: Interest is paid on balances above EUR 10,000
- GBP: Interest is paid on balances above GBP 8,000
- CAD: Interest is paid on balances above CAD 13,000
- HKD: Interest is paid on balances above HKD 78,000
- AUD: Interest is paid on balances above AUD 15,000
- Account Net Asset Value (NAV) Impact:
- Accounts with a NAV of USD 100,000 (or equivalent) or more receive interest at the full eligible rate.
- Accounts with NAV less than USD 100,000 receive interest at rates proportional to the account size.
- For example, an account with a NAV of USD 50,000 would earn credit interest at a rate equal to one-half the rate paid to accounts with a NAV of USD 100,000 or more.
- Additional Considerations:
- Interest rates are subject to change without prior notice.
- Each currency is treated separately for interest accruals. You need to meet the minimum balance requirement for each currency individually to earn interest on that specific currency balance.
- Interest is calculated daily and credited monthly on the third business day of the following month.
- The daily interest accrual amount must reach a minimum posting threshold of $1 USD. If your daily accruals are below this amount, they will accumulate until they reach $1 and then be posted to your account once per month.
Note
- The requirements and rates may change, so for the most up-to-date information on interest rates, tiers, and eligibility for specific currencies, please check the IBKR website.