Short answer. Yes we do.

Slightly longer answer; EasyEquities pays interest on funds that qualify, but we do NOT pay interest on unsettled funds.


How do we pay interest?

On all funds that qualify (explained below), client accounts will be credited with an Interest amount daily, calculated at the applicable rate per annum and then debited with a Cash Management Fee as indicated in the table on page 4 of our Cost Profile 

From 25/06/2019 how we credit your account with any interest due will be changing. From this date any interest due will still be accrued daily but only credited to your account on the first Business Day of the following month. You will not be able to withdraw or Trade using your accrued interest until it is credited to your Account.

How do we calculate what funds we pay interest on?

The equation we use to ensure that we only pay interest on the true settled cash amount is:

Cash that can earn interest = MAX(0, (Investable Cash – Unsettled Cash))

Terms in the equation explained:

1. Cash that can earn interest: This is the amount on which EasyEquities will pay interest.

2. Investable Funds: This is the available balance that is visible in the account overview section (highlighted in the image below). This available balance may be comprised of settled, unsettled or a combination of settled and unsettled amounts.

3. Unsettled Cash: This is the total sum of funds due from all Sell trades (including disinvestment from Bundles) that have not yet settled according to our T+5 cash settlement terms. Note that although EasyEquities does not allow clients to withdraw unsettled cash to their bank account, we do permit them to invest the unsettled cash in other assets on the platform prior to the cash settlement date being reached. 

In this case, the result of the above calculation could mean that the “Cash that can earn interest” could be a negative amount. In this case we do not Charge our clients Interest or Funding for this privilege, but nor do we pay them any interest.

What are we going to do to make interest clearer to our client

In order to make things simpler to understand, we intend addressing the following:

Where we currently refer to Available Funds on the platform, we will change this to “Investable Funds”, and introduce a new breakdown that highlights the “Cash that can earn interest” as well as the trades that are pending settlement so the client has a complete view of their uninvested funds.