If you have a cash balance in an allowed deposit currency with a negative benchmark interest rate, the following will apply:
- Credit Interest Fee:
- You will be subject to a variable credit interest fee on the balance.
- This fee is applied to offset the costs incurred by Interactive Brokers (IBKR) for holding the currency.
- Rate Variability:
- The rates are subject to changes based on fluctuations in benchmark interest rates.
- It's important to note that these fees are separate from any interest you may earn on positive cash balances.
- Affected Currencies:
- This policy applies only to currencies with negative benchmark interest rates.
- The list of affected currencies may change over time as benchmark rates fluctuate.
- Impact on Your Account:
- This fee can affect the overall return on your cash holdings.
- It's advisable to consider this when maintaining cash balances in currencies with negative benchmark rates.
- Staying Informed:
- For the most up-to-date information on affected currencies and their corresponding rates, you should regularly check the IBKR Pricing & Interest Rates page.