Market rate interest on cash balances with Interactive Brokers

Many notable brokers nowadays offer interest rates paid on available cash balances. This can be an alternative to traditional savings bank accounts, as brokers usually provide you with a higher interest rate.

Read on to find out everything you should know about earning interest on cash balances when you deposit money with Interactive Brokers.

interactive brokers margin interest rates

What do I have to do to get interest on my cash balance with Interactive Brokers?

Interactive Brokers' offer to pay interest on cash balances is available for anyone who has a minimum of £8,000 in the brokerage account in the securities segment. Interest is not payable on cash held in the commodities segment.

First, you need to visit the broker and open an account, the deposit your funds (at least £8,000) to qualify for the interest payments.

How can I open an Interactive Brokers account in the UK?

Opening an account with Interactive Brokers is quite straightforward:

  1. Visit the broker and click to open a new account.
  2. Follow the prompts to choose what account you want to open (such as an individual or joint account).
  3. Fill in all the necessary information, such as your personal data and verify your identity and residence.
  4. Log in to the new account using your username and password.

What base currencies are available with Interactive Brokers?

It's important to note that the interest rate you receive depends on the base currency of the account. For example, at press time, GBP accounts receive an interest rate of 4.749%, while USD accounts have an interest rate of 4.830%.

However, if you do choose a USD account, you will have to cover other fees, such as conversion fees, when you deposit or withdraw funds.

You can make deposits and withdrawals with any of the following currencies:

Symbol
CADCanadian Dollar
CZKCzech Koruna
CHFSwiss Franc
USDUS Dollar
DKKDanish Krone
EUREuro
GBPPound Sterling
HKDHong Kong Dollar
HUFHungarian Forint
INRIndian Rupee
ILSIsraeli Shekel
JPYJapanese Yen
MXNMexican Peso
NOKNorwegian Krone
NZDNew Zealand Dollar
SEKSwedish Krona
SGDSingapore Dollar

For more information on the currency, you may find on our review of Interactive Brokers.

Do you receive interest on any currency deposited in the Interactive Brokers account?

Not all currencies come with the same rate, and the minimum deposit also differs:

USD0 ≤ 10,0000%
> 10,0004.830% (BM – 0.5%)
AED0 ≤ 35,0000%
> 35,0004.222% (BM – 0.75%)
AUD0 ≤ 15,0000%
15,000 ≤ 150,0003.913% (BM – 0.5%)
> 150,0004.163% (BM – 0.25%)
CAD0 ≤ 13,0000%
> 13,0004.462% (BM – 0.5%)
CHF0 ≤ 10,0000%
> 10,0001.103% (BM – 0.5%)
CNH0 ≤ 70,0000%
> 70,0000.50%
CZK0 ≤ 250,0000%
> 250,0004.926% (BM – 2%)
DKK0 ≤ 75,0000%
> 75,0003.038% (BM – 0.5%)
EUR0 ≤ 10,0000%
> 10,0003.409% (BM – 0.5%)
GBP0 ≤ 8,0000%
> 8,0004.708% (BM – 0.5%)
HKD0 ≤ 78,0000%
> 78,0003.918% (BM – 0.75%)
HUF0 ≤ 3,500,0000%
> 3,500,0008.791% (BM – 3%)
ILSAll0%
INRAll0%
JPY0 ≤ 5,000,0000%
> 5,000,000-0.563% (BM – 0.25%)
KRW0 ≤ 12,000,0000%
> 12,000,0002.000% (BM – 1.5%)
MXN0 ≤ 200,0000%
> 200,0006.910% (BM – 4%)
NOK0 ≤ 100,0000%
> 100,0001.892% (BM – 2%)
NZD0 ≤ 15,0000%
> 15,0002.323% (BM – 2.5%)
PLN0 ≤ 400,0000%
> 400,0003.733% (BM – 2%)
SAR0 ≤ 35,0000%
> 35,0004.748% (BM – 0.75%)
SEK0 ≤ 110,0000%
> 110,0003.563% (BM – 0.5%)
SGD0 ≤ 14,0000%
> 14,0002.926% (BM – 1%)
TRY0 ≤ 250,0000%
> 250,0005%
ZAR0 ≤ 150,0000%
> 150,0006.925% (BM – 1%)

How often is interest paid with Interactive Brokers?

Interest is paid monthly on the available cash balance, as long as you deposit the minimum amount.

Is there a maximum capital limit?

There is no maximum limit when it comes to the deposited funds. However, customers with very large cash balances (for instance, 10M USD) may qualify for improved cash returns.

When does the Interactive Brokers interest promotion end?

There is no set deadline for this promotion, so you can open an account at any time.

You can find other brokers with interest-rate accounts:

Is my money safe with Interactive Brokers?

Yes, Interactive Brokers is safe as it is regulated by the SEC, FINRA, NYSE, and FCA, in addition to many other competent entities in other countries.

The fact of being regulated by the two most important agencies in the world such as the FCA in the UK and the SEC in the US is already a guarantee in itself. As for fund protection, Interactive Brokers LLC is regulated by the US SEC and CFTC and is a member of the SIPC compensation scheme with a maximum coverage of $500,000 (with a cash sublimit of $250,000) and under Interactive Brokers LLC's excess SIPC policy with certain underwriters at Lloyd's of London for up to an additional $30 million (with a cash sublimit of $900,000).

Summary

Overall, brokers are becoming more competitive than ever. As they now offer interest rates on cash balances, and often much higher than regular bank accounts, they are not only more convenient but sometimes even safer and more profitable than traditional banking services.

If you want to compare Interactive Brokers with other brokers, please read our comparisons:

FAQs

How much interest does Interactive Brokers pay on GBP balances?

At press time, Interactive Brokers offers 4.749% on cash balances.

Do you receive interest on all cash you deposit with Interactive Brokers?

No, there is no interest paid on the first £8,000 in your account. The full 4.749% interest is only paid on $100,000 (the equivalent). So, the final rate paid depends on how much cash you have in your account, starting from above £8,000. For example, if you deposit £10,000, you only get interest paid on £2,000.

Is the interest rate fixed with Interactive Brokers?

No, the interest rate paid on cash balances is subject to changes.

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