Why the 2 percent is more than marketing

From now on there is Trade Republic interest. These amount to two percent per year. However, the payment is made monthly, which is even more interesting due to the compound interest. Behind this is once again a clever move by the neobroker.

Trade Republic has done it again. With the beginning of the Corona crisis, the neo-broker from Berlin made stock trading in Germany socially acceptable. Instead of expensive transactions at your own bank, the provider has managed to bring the world of shares to smartphones.

Trade Republic Interest: 2 percent per year, paid monthly

And the start of 2023 could hardly be more spectacular. Because for the current year, the makers of the trading app have come up with a special treat for their own users.

So there is now – more precisely since the official press release on January 4, 2023 – now interest at Trade Republic.

Specifically, the interest amounts to two percent per year. However, the proportionate payment is always made on the first of a month. Accordingly, the actual interest rate is even higher due to compound interest.

With an effective annual interest rate of 2 percent, we pass on the advantages of the new interest rate environment directly to our customers. Every investor can now benefit directly and easily from interest.

That says Christian Hecker, co-founder of Trade Republic. The respective credit lands on your clearing account on the first banking day of the month. You can then simply see the exact value of the interest earned in your profile timeline.

Interest on balances up to 50,000 euros, deposit protection takes effect normally

Specifically, Trade Republic pays the two percent for a credit of up to 50,000 euros on the clearing account. Other investments are protected with the deposit guarantee system up to an amount of EUR 100,000. However, the difference no longer earns interest.

This means that interest is theoretically possible with a balance of EUR 50,000 in the clearing account per year – without compound interest.

There are certainly other banks and financial service providers on the market who are beginning to pay interest on savings and checking accounts again. However, only a few financial institutions are above the value of Trade Republic interest.

How long is the Trade Republic Interest offer valid?

If you read the press release carefully, you will see that the “offer is not limited in time”. “In the current market environment, the interest rates apply until further notice.” This wording is cleverly chosen because it leaves a small amount of leeway for changes.

And indeed, a look at the confirms FAQ:

According to our terms and conditions, this rate is subject to change. There are a number of macroeconomic factors that can cause the interest rate to change, including changes in the key interest rate as part of the ECB’s fiscal policy. We will notify you of any change before it occurs.

However, it must be assumed that the supply will remain in place for some time due to the current interest rate policy. In addition, counter-actions would also ensure that Trade Republic discredits itself, which in turn would damage its image.

It is therefore more of a clause that may gain in importance in the distant future.

Trade Republic positions itself as a saver’s favourite

With the launch of Trade Republic interest rates, the neo-broker has made a clever move. On the one hand, the move has attracted a lot of attention on social media and discussion forums. This marketing effect should not be underestimated.

However, it doesn’t stop there. The interest on the unused money in the clearing account also makes the trading app attractive for users who just want to let their money work. Because theoretically it is not necessary for interest to also trade in shares.

Accordingly, Trade Republic is once again significantly expanding its potential target group. Because the corresponding clearing account and registration with Trade Republic only takes a few minutes.

By the way: You have to activate the Trade Republic interest manually. To do this, simply click on the corresponding banner in your app and then accept the terms and conditions. If everything went well, you will see the saying “You get interest” under your course history.

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