Deposit on IB and negative interest?

hello, I wanted to open an IB account as well (even if probably I will stick with SwissQuote), once created I wanted to confirm it with a deposit, but when I click on “make a deposit” I get this messsage:

what does this mean? and does everyone deposit on his IB account Swiss Francs and converts them when buying something in another currency?

What should I do here? Thank you

Click there to review relevant interest rates for CHF and decide for yourself if they are worth paying for the duration and amount you seek to deposit!

Note no major currency pays any positive interest today and these interest rates are for cash balances only. Large cash positions are not insured and it doesn’t make sense to keep them at a broker uninvested.

Current negative interest rate at ib for chf is only above 100k

Maybe click the link from IB’s message?

I clicked on the message but it s the page about:

Interest Charged on Margin Loans

and I have no clue what they mean, the rates are the following:

these rates I dont know what they mean, they seem high people always wrote that IB only charges 2usd to change currency

can someone explain to me whhat this means?

for example, if I want to deposit 100k CHF on IB, to buy for example ETF VT, how should these interest rate concern me? It s not clear

Even if they would charge 1%/year (they do for anything above 100k), that would be 0.003% for a single day, so 2.80 for 100k. So it doesn’t really matter if you aren’t keeping a lot of cash.

https://www.interactivebrokers.com/en/index.php?f=46385 has all the info.

ah ok so those interests only apply if you deposit money on the account, and keep it there instead of buying something with it??? if that is the case, it s much more clear now, couldn’t understand what they meant on the website

@lug10 On your picture, you are looking at the margin rates, which is the rate at which you borrow money from IB, which is something you won’t do (unless you actually do it obviously).

The negative interest you pay on your cash money with IB is only if you have more than 100k CHF. Because CHF has negative rate in general, they display the message. This is the right table you must look at. And yes, it is on money not invested only.

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Ok thank you now it’s clear!

Then don’t. Why open it if you don’t use it? After 3 months you’ll start to pay 10chf/month if you have less than 100k usd deposited (etf or anything.)

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