IB Accrued Interest

Discussion in 'Retail Brokers' started by Sashe, Apr 20, 2006.

  1. Sashe

    Sashe

    Trying to figure out how IB calculates the accrued interest.
    I believe they pay out LIBOR (5.33% currently) -0.5%, so it is around 4.8% annual, am I correct?
    Let's say I have 100K on my IB acct and don't touch it all year long. There will be $4800 in the accrued interest in the end of the year (or $400/month). How will it be taxed (ball park)?
     
  2. Is libor that high?

    It will be taxed very well thanks.
     
  3. Sashe

    Sashe

  4. Sanjuro

    Sanjuro

  5. Sashe

    Sashe

  6. Sashe

    Sashe

    Thanks, great info