Interest on Idle Funds with IB

Discussion in 'Retail Brokers' started by short&naked, Aug 12, 2008.

  1. Does IB pay daily interest on funds for a Reg T margin account? Their description mentions securities and commodities accounts... also is this interest paid on a daily basis?

    http://individuals.interactivebrokers.com/en/accounts/fees/interest.php?ib_entity=llc

    "Whereas many brokers pay little or no interest on idle balances in their securities and/or commodities accounts, Interactive Brokers pays market competitive rates. "
     
  2. Daal

    Daal

    they dont pay on the first $10k, then they pay a little less than fed funds on the rest
     
  3. Thanks Daal, that's how I understood it too. I wasn't sure however, if one needed to manually purchase a CD or Bond to attain the interest.
     
  4. IB accrues interest daily and pays it in the first week of the following month. You will see the daily interest accrual on your daily statement.
     
  5. IB provides EFPs as a way to earn interest on the entire idle funds in the account, including the first $10K.