Interactive Brokers set to raise interest rates to USD 4.83% on instantly available cash
Global electronic broker Interactive Brokers (NASDAQ:IBKR) today announced that clients are expected to earn up to USD 4.83% on instantly available cash balances over USD 10,000.
Interest is paid directly to client brokerage accounts making cash instantly available to trade or transact. Interactive Brokers’ Cash Management service makes it easy for clients to earn interest and borrow at competitive rates while managing their money from one account.
“Interactive Brokers offers a simple Cash Management solution so clients can oversee their finances from a single account,” said Steve Sanders, EVP of Marketing and Product Development, at Interactive Brokers. “With our all-in-one approach, clients can earn and borrow at superior rates, make routine transactions and also trade across products and markets, without maintaining multiple accounts and services.”
While interest rates available at most other brokerages are negligible, the market interest paid by Interactive Brokers is calculated using the Fed Funds rate as the reference rate for USD minus 0.5%. When interest rates rise, clients of Interactive Brokers earn more.
In addition to the ability to invest globally in stocks, options, futures, currencies, bonds and funds from a single unified platform, IBKR’s Cash Management solution includes a number of features for US clients, including Bill Pay and Purchase Everywhere.