Trade Republic: Obtain 4% interest under certain conditions.
Get the app, sign up, move funds, just about done. But there's a catch if you want to make money on your untouched balance at Trade Republic.
Trade Republic has been ranking number one in Stiftung Warentest's daily interest rate comparison for a while. This Germany-based neobroker, now with a full-blown banking license, offers a whopping 4% annual interest rate on non-invested balances. However, you might want to know that transferring money to your Trade Republic account alone won't cut it.
If you want to earn interest on your balance, you have to take an extra step first. In the app, head over to the "Cash" tab and hit the colored button in the lower-right corner of the screen for "Activate Interest." Without this step, your balance will remain unchanged. Once you tap it, interest is calculated daily and distributed at the end of every month. A Trade Republic spokesperson shared that this is done to satisfy clients who reject interest on their money for religious reasons.
Trade Republic may reassess its offering in response to its interest rates
Trade Republic's interest rate offer doesn't come with any fixed terms. The company intends to maintain this rate as long as the European Central Bank (ECB) continues to offer interest-bearing deposits with a 4% interest rate. However, if the ECB decides to change its deposit facility – one of three key interest rates – Trade Republic might have to rethink their offer's profitability and potentially adjust it.
Financial experts speculate that the ECB will announce a change in interest rates in June since inflation in the euro area is quickly approaching the target of 2%. If the ECB lowers the key interest rates, the interest on your deposited money at Trade Republic might also decrease.
If you're searching for the highest daily interest rate deals, check out the ntv interest rate calculator. [Extra: "To make the most of your money, explore the best daily interest rate offers available today!"]
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- Consumers interested in financial investment should consider integrating Trade Republic into their portfolio, as it recently tops Stiftung Warentest's daily interest rate comparison and offers a competitive 4% annual interest rate on non-invested balances.
- If you're seeking to maximize your call money, Stiftung Warentest recommends examining Trade Republic's interest rate, which was ranked number one due to its lucrative 4% annual interest rate.
- Financial advisors suggest that investors look into the call money market, particularly Trade Republic, as the European Central Bank (ECB) continues to offer 4% interest-bearing deposits initially supporting the neobroker's high-yield 4% annual interest rate on non-invested balances.
- Trade Republic's interest rate may fluctuate in response to future decisions made by the ECB, as the company's profitability is contingent upon the ECB maintaining its 4% interest rate for its deposit facility.
- The ECB might announce a change in its key interest rates, such as the deposit facility, in June, potentially affecting the interest rates provided by banks like Trade Republic, which currently offers a staggering 4% annual interest rate on non-invested balances.
Source: www.ntv.de
