Money Market Rates* |
| Daily Income Fund, Money Market Portfolio |
1.18 |
| Daily Income Fund, US Government Portfolio |
.01 |
| Daily Income Fund, Municipal Portfolio |
.64 |
Calculation of Money Market Interest
To calculate the amount of credit interest earned in your account the following will need to be considered:
- The amount of money in the account that is not invested in stocks/options.
- The number of days the money in the account was not invested in stocks/options.
- The credit interest rate
The credit interest is calculated as follows:
- (Number of days * amount of money * interest rate) / 365
Example: $10,000 earning 4.78% interest for 18 days
- (18 * 10,000 * 4.78%) / 365 = $23.57 of credit interest earned.
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Margin Debit Rates** |
| Fed Funds |
0.00 |
| $1 - $100,000 |
Fed Funds + 5.00 = 5.00% |
| $100,001 - $250,000 |
Fed Funds + 4.50 = 4.50% |
| $250,001 - $500,000 |
Fed Funds + 4.00 = 4.00% |
| $500,001 + |
Fed Funds + 3.50 = 3.50% |
Calculation of Margin (Debit) Interest
The formula to determine how margin interest is incurred is as follows:
- Margin Interest = (Margin Debit * Margin Rate/360 days) * (Number of days the margin debit is carried)
For example:
$10,000 margin debit is charged a 8 ¾% margin rate for a period of 20 calendar days. Inserting the numbers in the formula above, the margin interest is calculated as follows:
- (10,000 *8.34%/360) * 20 = $46.33 of margin interest charged to the account.
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Credit Interest Rates** |
| Fed Funds |
0.00 |
| $1 - $100,000 |
Fed Funds |
| $100,001 - $250,000 |
Fed Funds |
| $250,001 - $500,000 |
Fed Funds |
| $500,001 + |
Fed Funds |
Calculation of Credit Interest
To calculate the amount of credit interest earned in your account the following will need to be considered:
- The amount of money in the account that is not invested in stocks/options.
- The number of days the money in the account was not invested in stocks/options.
- The credit interest rate
The credit interest is calculated as follows:
- (Number of days * amount of money * interest rate) / 365
Example: $10,000 earning 4.78% interest for 18 days
- (18 * 10,000 * 4.78%) / 365 = $23.57 of credit interest earned.
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* Rates are updated weekly and subject to change at any time without notice
** Rates are updated weekly and are subject to change at any time without notice. Fed Funds rate can be found in the Wall Street Journal under Money Rates (Fed Funds). Note that credit interest is not paid on balances at or below $250.
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