Interest on Idle Funds with IB

[short&naked]

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. "

 

[Daal]

they dont pay on the first $10k, then they pay a little less than fed funds on the rest

 

[short&naked]

Quote from Daal:

they dont pay on the first $10k, then they pay a little less than fed funds on the rest

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.

 

[jeb9999]

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.

 

[jimrockford]

IB provides EFPs as a way to earn interest on the entire idle funds in the account, including the first $10K.