How is interest calculated?

Your accounts NAV is assessed daily to determine whether your account meets the minimum NAV requirement. 

Your NAV takes into account the value of your cash and securities across supported currencies and asset types, converted into AUD using the applicable predetermined FX rate. 

If your account qualifies on any given day, interest is calculated on your eligible settled AUD cash balance for that day. USD and other foreign balances are not included in the interest calculation. 

Example 1: Holding AUD cash and securities. 

• AUD $5,000 in eligible settled AUD cash 

• AUD $5,500 in securities 

Your total NAV is $10,500. As your NAV exceeds the AUD$10,000 minimum requirement, your account meets the eligibility requirements.  Interest is calculated on the AUD $5,000 cash balance, not the full NAV of $10,500. 

Shares contribute to your NAV (in this example, AU Shares) but does not earn interest under Cash Optimiser. 

Example 2: Holding AUD cash and USD cash and securities. 

• AUD $2,500 in eligible settled AUD cash 

• USD cash equivalent to AUD $2,500  

• US shares with a market value equivalent to AUD $5,500 

Your total NAV is AUD $10,500, calculated using the applicable predetermined FX rate.  As your NAV exceeds the AUD$10,000 minimum requirement, your account meets the eligibility requirements. Interest is calculated on the AUD $2,500 cash balance only.