This has probably been a previous thread but, I did a Search and didn't find the answer I was looking for. Question: Do many/most margin or cash brokerage accounts pay interest for the cash held in the account. Example: If I put 25k into an IB account (or even it it was with Scottrade or Fidelity or someone).....do they pay 3%-5% on whatever isn't invested (like a savings account or money market account)?? Thanks in advance for any and all info.
IB pays interest on cash above US$10K. And the rates get better the more cash. In fact, their rates are one of the better ones I've seen. Most brokers do pay interest on cash balances, although some don't pay much. Call the broker(s) and ask them or, better yet, send them an e-mail asking specifically.