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
US Dollar Fed Funds Effective 5.32%
Euro Short-Term Rate 3.65%
Swiss Average Rate Overnight 1.70%
Sterling Overnight Index Average 5.19%


Example 1 - Amount 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

Amount Calculation

US Dollar Fed Funds Effective: 5.32%

Tier Balance Tier Spread Cash Calculated 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 Amount Charged 106.72


Example 2 - Amount Charged to You on a Negative Cash Balance (GBP)


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 charge on universal account balance -160,000

Sterling Overnight Index Average: 5.19%

Tier Balance Tier Spread Cash Calculated GBP Calculation
0 - 80,000 1.50% -80,000 14.65 80,000 x (5.19% + 1.50%)/365
80,000.01 - 800,000 1.00% -80,000 12.95 80,000 x (5.19% + 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 Amount Charged 28.21


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


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

Euro Short-Term Rate: 3.65%

Tier Balance Tier Spread Cash Calculated EUR Calculation
0 - 90,000 1.50% -10,000 1.43 10,000 x (3.65% + 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 Amount Charged 1.43


Example 4 - Amount Charged to You on a net Negative Cash Balance (CHF)


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


Statement Reflects

CHF Total
Ending Settled Cash -600,000

Amount Calculation

Swiss Average Rate Overnight: 1.70%

Tier Balance Tier Spread Cash Calculated CHF Calculation
0 - 90,000 1.50% -90,000 8.01 90,000 x (1.70% + 1.50%)/360
90,000.01 - 900,000 1.00% -510,000 38.31 510,000 x (1.70% + 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 Amount Charged 46.32