Interactive Brokers expected to raise rates on instantly available cash balances

Interactive Brokers announced that clients are expected to earn up to 4.33% on instantly available cash balances over $10,000. Unlike brokerages that offer significantly lower rates, Interactive Brokers conveniently pays interest directly to client brokerage accounts. This eliminates the need for separate sweeps accounts, funds or programs and enables cash to be instantly available. While interest rates available at other brokerages are only 0.01% – 2.32%, the market interest paid by Interactive Brokers, is calculated using the Fed Funds rate as the reference rate for minus 0.5%. As a result, if interest rates continue to rise as expected, clients of Interactive Brokers will have the opportunity to earn more.