How is margin interest 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 your accumulated interest charges on the home page in the Loan amount box and to the right of the words "Interest rate." 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 am I charged margin interest?
Margin interest is charged to your account a few business days after the end of each calendar month. The charge is applied to your outstanding loan balance.