Margin interest

How margin interest is calculated

Margin interest is accrued daily and charged monthly. The interest accrued each day is computed by multiplying your outstanding loan amount by the annual interest rate and dividing the result by 360. The amount of the debit balance determines the annual interest rate on that particular day.

You can see a history of interest charged to your account, the current interest rate for your portfolio line of credit, and the estimated interest you'll be charged for the month on the portfolio line of credit screen. This screen is accessible from the Overview page in the Frec platform.

This rate is subject to change since it's based on the Effective Federal Funds Rate, which is adjusted periodically by the Federal Reserve.

When margin interest is charged

Margin interest is typically charged to your account on the first day after the end of each calendar month in which a loan was taken. By default, the charge is applied to your outstanding loan balance, but you can cover it with a recurring deposit to your portfolio line of credit from an external bank using autopay.