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 |
Total |
| Ending Settled Cash |
-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 Debit Interest Charged |
|
|
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 |
Total |
| Ending Settled Cash |
-160,000 |
Calculate interest on universal account balance -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 |
0.00 |
|
| Total Debit Interest Charged |
|
|
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) universal account balance interest will be calculated as follows:
Statement Reflects
| EUR |
Total |
| Ending Settled Cash |
-10,000 |
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 Debit Interest Charged |
|
|
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 |
Total |
| Ending Settled Cash |
-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 Debit Interest Charged |
|
|
39.91 |
|
