Trade Republic introduces 2% interest on cash

German trading app Trade Republic is giving all of its customers a yearly 2 percent interest on their cash balance. It is calculated in real time and deposited each month, enabling users to accrue compound interest. The interest applies to cash balances up to 50,000 euros.

Trade Republic is a German trading platform where users can invest in international ETFs and savings plans. In June last year, the company raised 250 million euros and was valued at 5 billion euros. At that time, the platform already housed 1 million users and 6 billion euros in assets.

All users to receive interest

Now, the platform has introduced an interest on all customer’s cash balance. The offer is not time limited. This means that even users that are not invested in the market will receive a 2 percent interest.

‘Every investor can now benefit directly and easily from interest.’

“With 2 percent effective annual interest per year, we are passing on the benefits of the new interest rate environment directly to our customers. Every investor can now benefit directly and easily from interest”, said Christian Hecker, co-founder of Trade Republic.

In line with competition

As the European Central Bank rates rise, interest-based savings are becoming more attractive and Trade Republic wants to capitalize on that trend. Additionally, the new interest brings Trade Republic more in line with competitor Freetrade. This platform offers 3 percent interest for its paid ‘Plus’ subscribers and will launch soon in Germany.