IBKR calculates and pays interest on cash balances in accounts as follows:
Interest Eligibility and Rates:
- Interest is paid on positive settled cash balances in securities accounts, but not on cash held in the commodities segment.
- No interest is paid on the first USD 10,000 (or equivalent in other currencies) of cash.
- Accounts with a Net Asset Value (NAV) of USD 100,000 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 NAV of USD 50,000 earns credit interest at half the rate paid to accounts with NAV of USD 100,000 or more.
- Interest rates vary by currency and are subject to change without prior notice. Current rates can be found on the IBKR Pricing Interest Rates page.
Calculation and Accrual:
- Interest is calculated and accrued daily based on end-of-day settled cash balances.
- Calculations are done separately for each individual currency balance in the account.
- Calculations are completed on a 1 business day lag.
- For currencies with negative benchmark interest rates, accounts with a credit balance may be subject to paying credit interest fees.
Posting and Payment:
- Daily interest accruals are posted to the account and adjusted against individual currency balances on the third business day of the following month.
- If the accrual is less than $1.00 (or the minimum unit for the currency type held), it will accumulate with subsequent accruals until it reaches $1.00 before being posted to the account.
Viewing Interest Information:
- Interest accruals can be viewed in Activity statements under the 'Interest Accruals' section.
- Actual interest charged or paid is shown in the 'Interest' section of the following month's statement.
- A custom "Interest Details" statement can be generated in the Client Portal to show daily interest details. (How do I created an Interest Details statement?)
For the most up-to-date and detailed information on interest rates, calculations, and policies, always refer to the official IBKR website and documentation.