The interest rate schedule is subject to change from time to time without prior notification and please refer to our website and Financial Service Guide for latest offerings.
This is not an investment or saving product. Please read below for detailed definitions and explanations of uninvested cash balance and accrued interests
Uninvested Cash Balance:
It refers to the fully settled and instantlyUninvested Cash Interest Service available cash balance in your trading account. If you have placed a trade or currency exchange transaction recently, the uninvested cash balance may not match exactly with the estimated cash balance shown in your account. For example,
if one holding position is closed, the funds released will require T+2 to complete the settlement. Although it is included in the estimated cash balance displayed, the funds will not be included in the uninvested cash balance before the settlement is completed and no interest will therefore accrue.
if you place a market or limit order to buy shares, the corresponding cash amount for settlement will still be counted as uninvested cash until the settlement takes place.
Uninvested cash accrued interest:
Your interest entitlement is accrued on a per currency basis. That is, uninvested cash balance in different currencies will accrue separately and independently.
Currently, only uninvested USD and AUD cash balance will accrue interest entitlement.
Your interest entitlement is accrued daily on a calendar day basis. We will pay the accumulated accrued interest entitlement to your account on a monthly basis on the fourth trading day of the US market in the following month. Accrued interest entitlement per se will not generate or accrue additional interest and it will not be included in the uninvested cash balance until it is paid to you. The paid interest will be part of the uninvested cash balance and accrue interest thereafter.
Uninvested USD cash balance: USD daily interest entitlement is priced on a 360-day count convention. The accrued interest entitlement today is calculated based on today's uninvested cash balance at 23:59:59 EST. The updated accrued interest balance will be reflected in your account in approx.1 hour.
Uninvested AUD cash balance: AUD daily interest entitlement is priced on a 365-day count convention. The accrued interest entitlement today is calculated based on today's uninvested cash balance at 23:59:59 EST. The updated accrued interest balance will be reflected in your account in approx.1 hour.
Total interest received:
It refers to the total accumulated interest paid in the past to date. The accrued interest entitlement during the current month is not included.
For example, if the total interest displayed in August is 10 AUD, it is the sum of all the interest paid up to July.
Accrued interest calculation rules:
Daily accrued interest entitlement = sum of (tiered daily interest rate x uninvested cash balance corresponding to each tier)
Assume the interest rate schedule is:
For AUD:
Tiered Balance |
|
0-5,000 AUD | 0.00% |
5,001-50,000 AUD | 1.50% |
>50,000 AUD | 2.25% |
There will be no interest paid on the first 5,000AUD, regardless of the total uninvested cash balance.
Case 1: if your uninvested cash balance is 4,000AUD on a typical day, the accrued daily interest entitlement is 0.
Case 2: If your uninvested cash balance is 35,000 AUD on a typical day, the accrued daily interest entitlement is: 5,000 * 0% + (35,000 - 5,000) * (1.5%/ 365) = 1.23 AUD
Case 3: If your uninvested cash balance is 65,000 AUD on a typical day, the accrued daily interest entitlement is: [ 5,000 * 0% + 45,000 * 1.5% + ( 65,000 – 50,000) * 2.25% ] / 365 = 2.77 AUD
For USD:
Tiered Balance | Rate of interest to be passed through to you (per annum) |
0-5,000 USD | 0.00% |
5,001-50,000 USD | 1.50% |
>50,000 USD | 3.25% |
There will be no interest paid on the first 5,000 USD, regardless of the total uninvested cash balance.
Case 1: if your uninvested cash balance is 4,200 USD on a typical day, the accrued daily interest entitlement is 0.
Case 2: If your uninvested cash balance is 36,000 USD on a typical day, the accrued daily interest entitlement is: 5,000 * 0% + (36,000 - 5,000) * (1.5%/ 360) = 1.29USD
Case 3: If your uninvested cash balance is 68,000 USD on a typical day, the accrued daily interest entitlement is: [ 5,000 * 0% + 45,000 * 1.5% + ( 68,000 – 50,000) * 3.25% ] / 360 = 3.50 USD
Please note, for USD, the daily interest is priced on a 360-day count convention.
The interest rate schedule and calculations above are for illustration purpose only.
Tax implications on the interest income
In Australia, interest income are taxable income and may be subject to a 47% withholding tax if a valid Tax File Number (TFN) is not provided to Tiger Brokers AU. If you have yet to provide a valid TFN, please select Pro Mode portfolio page-->More-->Account Setting and provide your TFN here. For more information, please seek professional tax advice if deemed necessary.
FAQs
The interest rate schedule is subject to change from time to time without prior notification. This is NOT an investment or saving product and please refer to our website and Financial Service Guide for latest offerings.
1.What is the uninvested cash balance?
The uninvested cash balance is the fully settled and instantly available cash balance in your trading account.
2.Are all the funds in my trading account eligible to receive interest?
No. Currently, only the uninvested cash balance in AUD or USD is eligible to accrue interest entitlement independently and separately since 01 June 2023.
3.Does the uninvested cash balance refer to the estimated cash balance in my account?
Not exactly. If you have placed a trade or currency exchange transaction recently, the uninvested cash balance may not match exactly with the estimated cash balance shown in your account.
For example,
if one holding position is closed, the funds released will require T+2 to complete the settlement. Although it is included in the estimated cash balance displayed, the funds will not be included in the uninvested cash balance before the settlement is completed and no interest will therefore accrue.
if you place a market or limit order to buy shares, the corresponding cash amount for settlement will still be counted as uninvested cash until the settlement takes place.
4.What is the interest rate on my uninvested cash balance?
The interest rate is quoted in Annual Percentage Rate (APR).
The tiered interest rate schedule is subject to change from time to time without prior notification. Please refer to our website and Financial Service Guide for the latest interest schedule.
5.How is interest entitlement accrued and paid ?
Interest entitlement is accrued daily on a calendar day basis. We will pay the accumulated accrued interest entitlement to your account on a monthly basis on the fourth trading day of the US market in the following month. Accrued interest entitlement per se will not generate or accrue additional interest and it will not be included in the uninvested cash balance until it is paid to you. The paid interest will be part of the uninvested cash balance and accrue interest thereafter.
Uninvested USD cash balance: USD daily interest entitlement is priced on a 360-day count convention. The accrued interest entitlement on previous day is calculated based on today's uninvested cash balance at 00:00 am EST. The updated accrued interest balance will be reflected in your account in approx.1 hour.
Uninvested AUD cash balance: AUD daily interest entitlement is priced on a 365-day count convention. The accrued interest entitlement on previous day is calculated based on today's uninvested cash balance at 00:00 am EST The updated accrued interest balance will be reflected in your account in approx.1 hour.
6.How is my daily accrued interest entitlement calculated?
Daily accrued interest entitlement = sum of (tiered daily interest rate x uninvested cash balance corresponding to each tier).
For example, if the interest rate schedule is:
Tiered Balance |
|
0-5,000 AUD | 0.00% |
5,001-50,000 AUD | 1.50% |
>50,000 AUD | 2.25% |
There will be no interest paid on the first 5,000AUD, regardless of the total uninvested cash balance.
Case 1: if your uninvested cash balance is 4,000AUD on a typical day, the accrued daily interest
entitlement is 0.
Case 2: If your uninvested cash balance is 35,000 AUD on a typical day, the accrued daily interest entitlement is: 5,000 * 0% + (35,000 - 5,000) * (1.5%/ 365) = 1.23 AUD
Case 3: If your uninvested cash balance is 65,000 AUD on a typical day, the accrued daily interest entitlement is: [ 5,000 * 0% + 45,000 * 1.5% + ( 65,000 – 50,000) * 2.25% ] / 365 = 2.77 AUD
Please note, for USD, the daily interest is priced on a 360-day count convention.
The interest rate schedule and calculations above are for illustration purpose only.
7.Are there any minimum uninvested cash balance requirements for accruing interest?
Yes. Based upon the example in Question 6 above, there will be no accrued interest on the first 5,000 AUD, regardless of the total uninvested cash balance. The requirement and tiered schedule is subject to change from time to time without prior notification and please refer to our website and Financial Service Guide for latest offering.
8.What is the total interest received?
It refers to the total accumulated interest paid in the past to date. The accrued interest entitlement during the current month is not included. For example, if the total interest displayed in August is 10 AUD, it is the sum of all the interest paid up to July.
9.Will my buying power decrease if my uninvested cash balance begins to accrue interest?
No. The accrued interest program does not affect your buying power.
10.Is there any withdrawal limit on my uninvested cash balance accruing interest?
There is no withdrawal limit on your uninvested cash balance accruing interest. You can withdraw the funds at any time.
11.Will I need to pay tax on the interest income?
Yes, in Australia, interest income are taxable income and if a valid Tax File Number (TFN) is not provided to TBAU, you may be subject to 47% withholding tax.
For more information, please seek professional tax advice if deemed necessary.