When did IB institute this 100k minimum to earn interest

Didn't used to be this way.

With rate low for so long, who looked.

But now, in addition to the first 10k which earns nothing they have

a 100k MINIMUM before you can earn a penny in interest.

Nickel and dime us to death, must be worth many millions a year .

 

There is no such 100k minimum unless you are talking about the money you get for short sale.

 

The $100K balance qualifies you for a cash sweep which pays interest on your $ not in positions. On $100k you will get about $80 per month in interest, you will see an idle balance rise daily - except for weekends & holidays. There is a setting on your account you have to select to get the cash sweep. If you have over $100k in one account and $99,000 in another - only the $100k account will get the interest.

 

The limit looks like US $10k, not $100k, according to https://www.interactivebrokers.com/en/index.php?f=1595 , after clicking to open the section labeled "Interest Paid To You", in the table entitled "Interest Paid to You on Positive (Credit) Cash Balances":



Perhaps you are referring to some recent change that I am not aware of that is not yet reflected everywhere on IB's web site. If so, could you please cite and quote your source? Thanks in advance.

Even the $10k cut-off is a bit surprising to me, although, I suppose that, given that smaller accounts probably benefit the most from IB's comparatively very low ticket charges for most types of trades, perhaps IB has no competitive reason to offer interest on accounts with less than $10k of cash.

 

If you have 100k in assets you get interest on balances over 10k.

 

Thank you for the correction. I apologize for wasting the time of readers of this thread by my not reading the web page I pointed to more carefully, which states, just before the chart I excerpted, "For the purposes of crediting interest on either long settled cash balances or short stock collateral values, only accounts with Net Asset Value (NAV) exceeding USD 100,000 will be eligible to receive credit interest on long settled cash balances." I'll try to be more careful about such things in the future.

 

Thanks....didn't know they paid interest!

 

I'm pretty sure there was NO 100k minimum the last time IB was able to pay interest on balances.

Anyone old enough to remember?

 

I think that in the last four years or so (as long as I'm with IB) did they have this 100k minimum. It made me consider a few times whether it would make sense to transfer unused cash back to a savings account at a bank.

 

There is no 100K minimum on long cash. The 100K min is on interest from selling short.