Thanks Fred93. For many years while investing in LC, I used to read some of your consummate and informative posts.
Sure, 1% for 3 months is considered good these days for interest. Is it possible to have higher than 1% return for longer term Notes? Will they offer longer term Notes with higher return?
OK, I found the "IBKR Notes" FAQ. OK, this is the area I was reading:
1. "The IBKR Notes Program provides qualified investors an opportunity to earn higher interest on short-term investments to be offered periodically. IBG LLC intends to offer from time to time senior Notes. The U.S. dollar denominated Notes will be issued at face value in $1,000 increments and the minimum subscription is $10,000. The Notes will mature no later than the 30th day following issuance but may be redeemed sooner. The Notes will pay a fixed rate of interest, which will be set by adding a spread to the effective Federal Funds rate as reported by the New York Federal Reserve Bank on the morning of the date the Notes are sold to the purchaser. The minimum Rate will be 0.50% per annum, and all interest will be due and payable upon the earlier of the date of redemption or maturity of the Notes.
2. The interest rate on the Notes varies. At present it is 1%. The minimum interest rate for a Notes issuance is 0.5%. When there is a new Notes issuance, IBG LLC announces a Spread rate at least two days in advance. The Interest Rate for an issuance is the Spread Rate plus the Benchmark Rate, which is the Federal Funds Rate on the morning of the new issuance. The current Spread is the rate that, when added to the Benchmark Rate, will result in an interest rate of 1.0%.
Thanks Again for the knowledge.