How does an account's Net Asset Value (NAV) affect interest rates?

The Net Asset Value (NAV) of your IBKR account directly affects the interest rate you receive on cash balances. Here is how it works:

1. Full Interest Rate Threshold:
   • Accounts with a NAV of USD 100,000 (or equivalent in other currencies) or more receive interest at the full eligible rate.
2. Proportional Rates for Lower NAV:
   • Accounts with a NAV less than USD 100,000 receive interest at rates proportional to the account size.
     • Example: An account with a NAV of USD 50,000 earns credit interest at a rate equal to one-half the rate paid to accounts with a NAV of USD 100,000 or more.
3. Minimum Balance Requirement:
   • No interest is paid on the first USD 10,000 of cash (or equivalent in other currencies).
4. Linear Rate Increase:
   • The interest rate increases linearly as your NAV approaches USD 100,000.
5. Currency-Specific Calculations:
   • Interest is calculated separately for each individual currency balance in the account.
   • Minimum balance requirements may vary by currency (e.g., 10,000 EUR for Euro balances).
6. Account Segments:
   • Interest is earned on positive settled cash balances in the securities segment of an account.
   • Cash held in the commodities segment does not earn interest.
7. Interest Calculation and Posting:
   • Interest accrues daily but is posted to your account monthly.
   • IBKR uses a blended rate based on tiers outlined in their pricing structure.
8. Rate Changes:
   • Interest rates are subject to change without prior notice at IBKR's discretion.

For the most up-to-date information on interest rates and to calculate potential earnings based on your account size, visit the Interactive Brokers Interest Rates page.