What is the interbank rate?

The interbank rate (Interbank Deposit Certificate) is the interest rate used in loans between banks. In practice, it is the reference for most fixed‑income investments in many countries.

interbank rate vs central bank base rate

The interbank rate closely follows the central bank base rate (usually 0.10% lower). If the central bank base rate is at 14.75%, the interbank rate is around 14.65%.

Why does it matter?

When an investment yields “100% of the interbank rate”, it means it pays exactly the interbank rate. Examples:

  • 100% interbank rate = standard yield
  • 110% interbank rate = above average (good)
  • 80% interbank rate = below average (bad, like a savings account)

How much does it yield?

With the interbank rate at 14.65% per year:

  • $200 invested = ~ $29.30/year (gross)
  • After deducting income tax (15‑22.5%), it’s between $22.60 and $24.80/year net