Several factors influence the interest rate and earnings on your cash balance at Interactive Brokers (IBKR):
- Net Asset Value (NAV):
- Accounts with a NAV of $100,000 or more receive the full eligible interest rate.
- Accounts with NAV less than $100,000 receive interest at rates proportional to the account size.
- For example, an account with a NAV of $50,000 would earn credit interest at half the rate paid to accounts with a NAV of $100,000 or more.
- Cash Balance:
- Interest is generally paid on balances exceeding $10,000 (or equivalent in other currencies).
- There's no upper limit on cash balances eligible for interest.
- The interest rate may vary based on different balance tiers.
- Account Segment:
- Only cash in the Securities segment earns interest.
- Cash held in the Futures or Commodities segment does not earn interest.
- Currency:
- Interest rates vary by currency.
- Minimum balances and rates may differ for different currencies.
- Settled vs. Unsettled Funds:
- Interest is calculated based on settled cash balances.
- There is a one business day lag in calculations due to settlement dates.
- Adjusted Cash Balance:
- Even if your cash balance is positive, the adjusted balance used for interest calculations might be negative due to other factors in your account.
- Market Conditions:
- Interest rates are subject to change without prior notice based on daily market conditions.
- Minimum Threshold for Posting:
- Daily interest accruals less than $1.00 (or the minimum unit for your currency) will accumulate until reaching this threshold before posting to your account.
Additional Information
- How do I created an Interest Details statement?
- For detailed information on interest calculations and current rates, please visit the Interactive Brokers Pricing and Interest Rates page.