Economic and Climate Forecast Contracts Are Live -
Client Login | View Markets | Learn More

Interest Charged Examples

Examples

For questions about interest rate issues, please use the Inquiry Ticket or Chat system located in the Support menu of Account Management / Client Portal. When determining the quoted spread, IBKR will use the set benchmark rate or a benchmark rate of 0 for all benchmark rates less than 0.

For all below examples assume benchmark rates as follows:


Benchmark (BM) Rate
Reference Benchmark USD 5.32%
Reference Benchmark EUR 3.40%
Reference Benchmark CHF 1.32%
Reference Benchmark GBP 4.91%


Example 1 - Interest Charged To You (USD)


When you borrow money, we'll charge you daily interest on your borrowed money as follows:


Statement Reflects

USD Securities Commodities UKL Total
Ending Settled Cash -500,000 0 -100,000 -600,000

Interest Calculation

Reference Benchmark USD: 5.32%

Tier Balance Tier Spread Cash Interest in USD Calculation
0 - 100,000 1.50% -100,000 18.94 100,000 x (5.32% + 1.50%)/360
100,000.01 - 1,000,000 1.00% -500,000 87.78 500,000 x (5.32% + 1.00%)/360
1,000,000.01 - 50,000,000 0.75% 0 0.00
50,000,000.01 - 200,000,000 0.50% 0 0.00
> 200,000,000 1.50% 0 0.00
Total 106.72
Distribution Interest in USD Calculation
Debit interest charged (securities) 88.93 106.72 x (500,000/600,000)
Debit interest charged (UKL) 17.79 106.72 x (100,000/600,000)
Total 106.72


Example 2 - Interest Charged to You on a Negative Cash Balance


When you have a negative (debit) cash balance in your combined securities and commodities account and a negative (debit) balance in your UKL account, we'll charge you daily interest on the net debit balance as follows:


Statement Reflects

GBP Securities Commodities UKL Total
Ending Settled Cash -70,000 10,000 -100,000 -160,000
Commodity Maintenance Margin   0
Commodity Option Value   0    

Calculate interest on Integrated Investment account balance GBP -160,000

Reference Benchmark GBP: 4.91%

Tier Balance Tier Spread Cash Interest in GBP Calculation
0 - 80,000 1.50% -80,000 14.05 80,000 x (4.91%+1.50%)/365
80,000.01 - 800,000 1.00% -80,000 12.95 80,000 x (4.91%+1.00%)/365
800,000.01 - 38,000,000 0.75% 0 0.00
38,000,000.01 - 150,000,000 0.50% 0 0.00
> 150,000,000 1.50% 0 0  
Total 27.00
Distribution Interest in GBP Calculation
Debit interest charged (securities) 11.12 27.00 x (70,000/170,000)
Debit interest charged (UKL) 15.88 27.00 x (100,000/170,000)
Total 27.00


Example 3 - Interest Charged to You (EUR) on a net Negative Cash Balance


When your combined security and commodity accounts are negative (debit) and your UKL account is positive (credit) leading to a combined negative (debit) Integrated Investment account balance interest will be calculated as follows:


Statement Reflects

EUR Securities Commodities UKL Total
Ending Settled Cash -50,000 20,000 20,000 -10,000
Commodity Maintenance Margin   0    
Commodity Option Value   0    

Calculate interest on a net negative (debit) balance of 10,000

Reference Benchmark EUR: 3.40%

Tier Balance Tier Spread Cash Interest in EUR Calculation
0 - 90,000 1.50% -10,000 1.36 10,000 x (3.40%+1.50%)/360
90,000.01 - 900,000 1.00% 0 0.00  
900,000.01 - 44,000,000 0.75% 0 0.00  
44,000,000.01 - 180,000,000 0.50% 0 0.00  
> 180,000,000 1.50% 0 0.00  
Total 1.36
Distribution Interest in EUR Calculation
Debit interest charged (securities) 1.36
Credit interest paid (UKL) 0.00 No credit interest is paid
Total 1.36


Example 4 - Interest Calculation on Negative CHF Cash Balance


When you borrow money in CHF, interest will be calculated as follows:


Statement Reflects

CHF Securities Commodities UKL Total
Ending Settled Cash -500,000 0 -100,000 -600,000

Interest Calculation

Reference Benchmark CHF: 1.32%

Tier Balance Tier Spread Cash Interest in CHF Calculation
0 - 90,000 1.50% -90,000 7.05 90,000 x (1.32%+ 1.50%)/360
90,000.01 - 900,000 1.00% -510,000 32.86 510,000 x (1.32%+ 1.00%)/360
900,000.01 - 46,000,000 0.75% 0 0.00
46,000,000.01 - 180,000,000 0.50% 0 0.00
> 180,000,000 1.50% 0 0.00  
Total 39.91
Distribution Interest in CHF Calculation
Debit interest charged (securities) 33.26 39.91 x (500,000/600,000)
Debit interest charged (UKL) 6.65 39.91 x (100,000/600,000)
Total 39.91