As an Interactive Brokers client, you are likely aware that client accounts receive credit interest on long-settled cash balances in their securities accounts. After recent increases in interest rates by the US Federal Reserve, Interactive Brokers now pays up to USD 1.08% on long-settled cash balances.1 If the Fed raises interest rates by 75 basis points at the end of the month, this rate will likely rise to USD 1.83% because the interest IBKR pays rises in tandem with Fed interest rate increases.
Accounts with a Net Asset Value (NAV) of USD 100,000 (or equivalent) or more are paid interest at the full rate for which they are eligible. Accounts with NAV of less than USD 100,000 (or equivalent) receive interest at rates proportional to the size of the account.
For example, an account with a NAV of USD 50,000 earns credit interest at a rate equal to one-half the rate paid by IBKR to accounts with a NAV of USD 100,000 or more.
Interest accrues and is payable daily. IBKR posts the interest payments monthly on the third business day of the following month. IBKR uses a blended rate based on the tiers outlined on our website. The tiers on which interest rates are based are subject to change without prior notification.
For balances held in CHF, DKK, EUR or SEK, IBKR may apply an effective negative rate to long balances held. The negative rate applied to accounts holding these currencies is the same regardless of account size. For other currencies in which the benchmark rate plus the interest rate paid is less than zero, the interest paid is 0%.
Same for LSPU above $40, spent most of June and July buying it when it was under $40
