IB: How to understand "Accrued Interest"

Discussion in 'IB Technical Issues' started by Option Trader, Jul 12, 2006.

  1. Can anyone clarify when "Accrued Interest" updates into the total "Account Balance"? Is it at the end of every month, or the end of each day that the Account Balance will reflect the change?

    I thought IB had said the Account Balance updates at the end of each month, but had noticed in real life that a credit interest of about $3k had disappeared at month end w/o having increased the "Account Balance", so I am wondering if the credit actually had applied during the month? :confused:
  2. A whopping 38 views, and nobody understands the accounting?
  3. i think the accrued rate is reflected on your balance daily and actually paid at the end of each month. it starts over every month. ib hss the fatest rate around for over 100k
  4. Lucrum


    From their web site:
    IB reports interest on a daily, monthly, and annual basis ...
    ...Monthly interest payments/charges are
    posted to accounts, and reported in statements, at the end of the first full week of the following month (usually between the 6th and 9th of the following month).

    which you've probably already seen.

    Wish I could help but I haven't figured it out either. Closed a short EUR/USD trade recently and had accrued interest showing up days after the trade was closed
  5. alanm


    There is no such term as "Account Balance" at IB.

    In the TWS account window, for an account with no positions and no non-base currencies, the relevant fields are:

    "Accrued Interest" - Updated during the nightly reset to reflect credit interest accrued since the previous nightly reset (equivalent to "Accruals" in the statement's "Total Equity Summary").

    "Total Cash Value" - Actual cash in the account (equivalent to "Cash" in the statement's "Total Equity Summary")

    "Net Liquidation" - "Total Cash Value" plus "Accrued Interest" (equivalent to "Total" in the statement's "Total Equity Summary")

    That is, "Accrued Interest" and "Net Liquidation" are increased by 1 day's credit interest each night. "Total Cash Value" remains the same.

    Some time in the first few days of the month, you'll see "Accrued Interest" decrease, and "Total Cash Value" increase, as they move about a month's of accrued interest between them.

    BTW, it's not nice to whine "nobody answered me" 40 minutes after your original post. Some of us have lives, work, etc. (so I've heard).
  6. ddunbar

    ddunbar Guest

    LOL. Should have made him wait a bit more.
  7. I usually wait for the full 40 days before whining.
  8. Unless IB did something crooked, I don't think you are right; when the "Accrued Interest" decreased, the "Total Cash Value" did NOT increase the next day.
  9. cscott


    Why is accrued interest debited? Could this because your acct balance is less than 10K?
  10. cknucks


    Where is def on this? Does he not post anymore?
    #10     Jul 13, 2006