Trade Republic interest rates: 2% on instant access savings
Like most online brokers, Trade Republic also offers interest on your uninvested capital. Currently, you receive 2%, which corresponds to the base rate in Europe. But is it really worth it? How does it compare to other instant access savings accounts, and what should you bear in mind when using it? We have compiled the most important points for you!
In brief:
- Trade Republic offers interest on your uninvested capital. The 2% corresponds to the base rate and is very attractive compared to competitors.
- Interest is paid automatically and you have access to your money at any time. This makes the offer comparable to a traditional instant access savings account.
- Further interest rate cuts by the ECB are likely to follow in the coming months. Trade Republic will then probably also lower its interest rates. Until then, however, an investment is very worthwhile.
Trade Republic instant access savings account: These are the interest rates you can currently expect
Europe’s largest neobroker hardly needs any introduction: almost every investor has already had experience with Trade Republic and its range of shares, ETFs, cryptos and more. No wonder, given that it offers extremely low prices at just one euro per transaction!
Now, one might naturally assume that Trade Republic finances its business through hidden costs – but that is far from the case! Instead, its main source of income is the rebate it receives from the executing exchange Lang & Schwarz. This means that, apart from the one-euro flat fee, there are no additional costs for us investors.
The sources of income therefore largely operate in the background. Trade Republic remains true to this concept of ‘no unnecessary costs for customers’ when it comes to instant access savings accounts: Currently, you receive 2% interest on your capital. This corresponds to the current base rate. The Berlin-based company passes on the interest it receives to you on a 1:1 basis.
Interest is paid on all money held in your account that has not been invested in shares, ETFs or other assets. This means that your assets grow even if they are just sitting there. Trade Republic pays the interest automatically – no special registration or deposit is required for the instant access savings account.
This makes the entire process incredibly simple. This advantage is particularly evident when comparing Scalable Capital and Trade Republic, as with the competition, you first have to take out a paid subscription and then manually transfer money to your instant access savings account.
What is the base rate and how does it affect Trade Republic interest rates?
Anyone who wants to borrow money must pay interest in return. This applies not only to private individuals, but also to financial institutions! In our complex financial system, banks lend capital to each other or take out loans from a central bank or note-issuing bank.
The base rate describes how much banks have to pay for this. It is therefore sometimes referred to as the ‘interbank interest rate’. The higher this interest rate, the more expensive lending are and the more difficult it is for companies and private individuals, for example, to obtain money. On the other hand, those who have money can invest it at a good return in these times.
However, the base rate does not only affect how much interest you receive on your capital or have to pay for a loan. It also influences the stock markets and the entire financial system!
Low interest rates mean that investors looking for good returns have to look elsewhere. Suddenly, shares, P2P lending or an ETF savings plan become very attractive. At the same time, fixed-income investments such as instant access savings or bonds, such as the classic 10-year US government bond, lose their appeal because the low interest rates are simply not enough.
If, on the other hand, the base rate is high, investors receive a good return on their instant access savings, fixed-term deposits, bonds and other fixed-interest products. Their interest in risky asset classes such as shares or P2P lending then wanes. They can simply invest their money with less risk and effort at a bank.
Changes in demand on the stock exchanges and financial markets in turn influence the available capital and share prices. The cost of credit is also particularly important for companies. A change in the base rate can therefore have far-reaching consequences for the entire economy of a region!
In 2024, we saw a gradual reduction in interest rates. The European Central Bank had raised them to combat high inflation in previous years. As inflation slowed, the base rate could also be reduced.
This trend is highly likely to continue and will also affect Trade Republic interest rates: they are likely to fall gradually over the coming months. However, as you can withdraw your money at any time, there is no reason not to profit handsomely until then!
Disadvantages and risks: Is my capital safe with Trade Republic savings account?
With savings accounts, security plays a major role. Most investors use them as a ‘nest egg’, i.e. to provide for bad times and unexpected expenses. Exchange-traded assets such as shares are not suitable for this purpose. This is because if you need money in an emergency, your securities could be deeply in the red. In addition, a total loss is possible with shares and ETFs.
The key question is therefore: Is your money safe while you earn interest with Trade Republic? Because only a secure investment is suitable for your savings. The simple answer is: Yes, your capital is largely protected. However, if there were to be a financial crash like the one we experienced in 2007, things could get tight.
This is how your money is stored with Trade Republic instant access savings
Trade Republic has been a fully-fledged bank licensed by BaFin since 2024. However, it continues to work with the following partner banks for its instant access savings accounts:
- Deutsche Bank
- J.P.Morgan
- HSBC Continental Europe
The first two financial institutions are based in Germany and are subject to German deposit protection, while HSBC is based in France. In the event of a bank failure, the deposit protection fund of the respective country will intervene. However, in the event of a major crisis comparable to that of 2007, this money is unlikely to be sufficient.
The assumption is then that the respective nation will step in to rescue the banks. In Germany, this is virtually guaranteed, and investor confidence is correspondingly high. In France, on the other hand, the probability of a government bailout is considered to be lower.
This is hardly surprising: countries such as Iceland refrained from bailing out banks during the financial crisis. Instead, those responsible were held accountable and international investors were left to bear their losses. This approach limited the damage and enabled the country to overcome the ensuing recession more quickly than expected.
France could take this principle as a model and, in future, also refrain from using more than the deposit guarantee fund for bailouts. In this case, your capital could be at risk if you use Trade Republic’s instant access savings account. You have no influence over where the broker parks your capital!
I am fortunate: my uninvested capital is stored at Deutsche Bank and is therefore very secure. However, investors have no influence on the location.
For larger sums, they also reserve the right to invest your assets in a money market fund. Although Trade Republic promises to pay interest regardless of the performance of such a fund, in the event of a crash, there is no guarantee that your entire capital will be repaid.
Depending on where the company stores your money, bank failures and financial crises are therefore serious risks. And if you think that such disasters are extremely rare, I’m afraid I have to disappoint you: since 2001, around 567 banks have gone bankrupt.
Trade Republic interest rates therefore carry a risk. In my opinion, they are not a suitable substitute for a savings money account, where security is a key consideration. It becomes particularly tricky with very large sums of over €100,000. However, it does not make sense to put such amounts into savings accounts with only 2% interest anyway.
I would advise against using this offer for your nest egg – but that doesn’t mean you can’t benefit from the interest! There are various scenarios in which Trade Republic’s instant access savings account is very worthwhile.
Trade Republic interest rates compared to competitors
The brokerage market is highly competitive, and small differences in interest rates can quickly translate into thousands of new customers. So let’s take a look at Trade Republic’s main competitors, their interest rates and terms and conditions:
1. Freedom24
A low-cost online broker with over a million tradable assets, 15 trading venues and strong customer service. What sounds unthinkable at first is a reality at Freedom24! The internationally successful provider is still relatively unknown in the UK. Unfairly so, in my opinion, because my experience with Freedom24 has been overwhelmingly positive so far.
There’s no need to hide when it comes to interest rates either! Although Trade Republic’s interest rates cannot be beaten, at 3.36% they are still a good value. The measure is clearly aimed at attracting new customers and is likely to cost Freedom24 a lot. It is therefore doubtful whether such figures can be offered in the long term.
In the meantime, customers are certainly happy to accept the effortless interest payments. However, it should be noted that this is not a British broker and the security mechanisms are different. While Trade Republic protects your deposits up to €100,000, Freedom24 only protects a maximum of €20,000.
Attention!
Freedom24 is not subject to the standard deposit protection of €100,000! Your capital (cash) is only protected up to an amount of €20,000.
2. Scalable Capital
Scalable Capital is the second-largest neobroker on the German market and is in constant competition with Trade Republic: they have a similar selection and pricing model (€0.99 per transaction) and appeal to roughly the same customer group. I also enjoy using this broker and have done review of Scalable Capital for you.
However, one important difference is the ‘PRIME+’ trading flat rate. For €4.99 per month, trading fees are waived for trades over €250, the spread for cryptocurrencies is reduced and you receive additional analysis tools. Subscribers receive interest of 2.6% on their uninvested capital at Scalable Capital.
Trade Republic’s interest rates are therefore significantly more attractive. In addition, you have to pay €4.99 per month, so Scalable Capital’s instant access savings account is only worthwhile for larger amounts:
| Amount | Interest | Subscription costs (per year) | Effective interest rate | Return in € (year) |
| 1.000 € | 26,00 € | 59,88 € | -3,39 % | -33,88 € |
| 5.000 € | 130,00 € | 59,88 € | 1,40 % | 70,00 € |
| 10.000 € | 260,00 € | 59,88 € | 2,00 % | 200,12 € |
| 25.000 € | 650,00 € | 59,88 € | 2,36 % | 590,12 € |
| 50.000 € | 1.300,00 € | 59,88 € | 2,48 % | 1.240,12 € |
| 75.000 € | 1.950,00 € | 59,88 € | 2,52 % | 1.890,12 € |
| 100.000 € | 2.600,00 € | 59,88 € | 2,54 % | 2.540,12 € |
Scalable Capital cannot compete with Trade Republic when it comes to interest rates. Only for amounts exceeding €10,000 does the effective interest rate rise above 2%, which can offset current inflation. However, if you use the PRIME+ offer for other reasons (regular trading, crypto trading, analysis tools, etc.), the interest rates are a nice extra that you will certainly appreciate.
To find out how these two popular brokers perform in other areas and which provider is better suited to you, read my article Scalable Capital vs. Trade Republic.
3. Comdirect
Comdirect is a direct bank and not a neobroker. Accordingly, you cannot expect the favourable terms offered by Trade Republic and similar providers. The interest rate here is a meagre 0.75% per annum. However, new customers receive an attractive 2% p.a. for the first three months.
Of course, they advertise this higher figure and try to sweep the poor interest rates under the carpet once the three months are up. The measure is clearly aimed at attracting new customers. This is also supported by the excellent €50 bonus that you receive when you sign up via my link.
Trade Republic’s interest rates are simply unbeatable. However, a Comdirect securities account could be worthwhile if you have the minimum investment amount of €1,000 available for three months. The combination of a €50 sign-up bonus and 2% interest yields a nice return. You can then withdraw your money and use it elsewhere.
4. Consorsbank
Consorsbank also does not offer attractive interest rates for your capital: existing customers receive only 1% per annum. New customers, on the other hand, are enticed with an impressive 3.5%, but only for the first five months. For fixed-term deposits, the bank offers up to 3% p.a. for a term of 12 months and a minimum amount of €2,500.
Overall, Consorsbank also lags far behind Trade Republic’s interest rates – especially for longer investment periods, it is not worth parking your money here.
5. ING
ING also presents the picture we are used to seeing from banks: a meagre interest rate of 1.25% for existing customers is obscured by an introductory offer of 3.3% for new customers. Four months after signing up, you can benefit from the higher interest rates. After that, the interest rate is not even enough to offset inflation.
Here is an overview of all the major instant access savings account providers:
| Trade Republic | Scalable Capital | Freedom24 | Comdirect | Consorsbank | ING | |
| Interest rate | 2 % | 2 % | 3,36 % | 0,75 % | 1,00 % | 1,25 % |
| Extras | – | Only with PRIME+ for €4.99/month | – | 3.25% for the first 3 months | 3.5% for the first 5 months | 3.3% for the first 4 months |
| Minimum deposit | No minimum deposit | No minimum deposit | No minimum deposit | No minimum deposit | No minimum deposit | No minimum deposit |
| Maximum amount | Unlimited | 100.000 € | Unlimited | 1.000.000€ | 1.000.000 € | 250.000 € |
When are Trade Republic interest rates worthwhile?
The interest rates at Trade Republic are currently a very good 2%, which is slightly more than you would receive with comparable instant access savings accounts. In return, you have to accept slight compromises in terms of security. This also changes the practical applications a little!
This offer is not suitable as a nest egg for hard times. Neither your capital nor the Trade Republic interest rates are secure: the broker regularly adjusts the interest rate to the base rate. In the event of a serious crisis, bank failures and defaults could also occur, which could affect your assets.
However, there are other situations in which the interest rate is very favourable:
- You use Trade Republic ETFs for a long-term savings plan, invest in shares or use other assets with the aim of continuously building up your assets. You deposit the money for the execution in advance in your securities account.
The broker does offer you the option of deducting the savings amount from another bank account; however, making a manual deposit in advance may be more suitable, as this allows you to benefit from the 2% interest.
Even if you receive irregular payments (e.g. Christmas bonus), it may be a good idea to transfer a larger amount to your securities account. This can be used to pay for your upcoming savings plans, while you continue to earn interest in the meantime.
- You use your TR account as a current account, pay with your Visa card when shopping and withdraw money from ATMs. In this case, your account always contains some money anyway. So you receive Trade Republic interest as a nice extra without having to do anything.
For some users, the 2% could be the difference between TR and other online banks. The Saveback bonus, which you receive when you make purchases with the card, is another advantage of this broker: 1% of your spending, up to a maximum of €15 per month, is paid into a savings plan of your choice. However, you must have a savings plan with a minimum monthly contribution of €50.
- You purchase shares or ETFs as a single order and wait for a favourable opportunity. Perhaps a company’s quarterly figures are due to be published soon, or a change in the base rate is expected. While you wait for the ideal time to buy an asset, you can park your capital in your securities account and earn further interest in the meantime.
Open a Trade Republic instant access savings account: How to register
If Trade Republic interest rates have piqued your interest, you can open a free securities account at any time and get started right away. Don’t be put off by the term ‘securities account’: you don’t have to buy shares, ETFs or other stock market products and can simply take advantage of the interest rates.
As is customary with neobrokers, registration is done exclusively online and takes only a few minutes. The following steps are required:
- Click on the ‘Go to provider’ button to go directly to the relevant page.
- Click on the ‘Get the app’ button. You can only complete the registration process via the app; it is not possible to register via your browser.
- Follow the instructions in the app and enter your email address and personal details.
- You must identify yourself online. To do this, you will need a valid passport or identity card, a mobile phone with a working camera and a stable internet connection. The app will guide you through all the steps in a simple manner.
- Once identification is complete, it usually only takes a few seconds before you can open and use your Trade Republic instant access savings account.
Once everything has been activated, you can use your securities account to buy shares and other securities, for example. To take advantage of Trade Republic interest rates, simply switch to the ‘Cash’ tab and scroll down to ‘Benefits’.
The final step is to “activate” your instant access savings account. Your deposited but uninvested capital will then automatically earn interest.
My Trade Republic instant access savings account experience: this is how much interest I earned
I have been with Trade Republic since the early days and have invested large sums of money in the meantime. Of course, I am also happy to receive the high interest rates on my capital! At the moment, I am mainly storing capital at Trade Republic that I would like to use later for share purchases and savings plans.
I have earned around 400 euros with the savings account so far – considering that I did not deposit any extra capital for this and only invested as usual, this is a very good result!
My experiences with instant access savings accounts have been positive so far: interest is calculated on a daily basis, so even short periods can be worthwhile. There are no complaints about the payout either. It arrives punctually and directly in my account and is immediately available for new investments.
During my experience with Trade Republic’s instant access savings account, the interest rate has been reduced several times. Given the falling base rate, this is not surprising and will certainly continue in the future. Most recently, the company adjusted the interest rate from 3.5% to 2%.
I primarily use Trade Republic for shares, ETFs and savings plan investments. The instant access savings account is a nice extra that makes the broker much more attractive to me – but I don’t invest capital here just for the interest.
Conclusion: Trade Republic interest rates leave almost all competitors behind
At Trade Republic, investors receive 2% interest on their uninvested capital. This high return corresponds to the current base rate and is therefore the maximum that a bank can offer in the long term! In addition, you get access to the broker’s extensive product range and your own free current account.
This makes the Berlin-based company one of the leading providers of instant access savings accounts on the German market. This investment class is characterised by high security and liquidity – you can withdraw your money at any time or increase your savings. In return, you often have to accept lower returns.
Trade Republic’s interest rates prove that there is another way. In a direct comparison, it leaves all other providers in the dust.
However, when it comes to very large sums, it is unclear how secure your capital actually is in an emergency. This is because your money is stored with partner banks such as Deutsche Bank and HSBC in France. In practice, however, this is unlikely to matter: anyone who has more than €100,000 in cash should definitely invest it wisely rather than leaving it in a savings account.
Many other providers, such as Scalable Capital, Comdirect, Consorsbank, ING and S-Broker (Sparkassen), cannot compete with Trade Republic’s interest rates. The TR instant access savings account is therefore recommended for anyone looking for a new home for their nest egg, wanting to switch banks, or wishing to invest money regularly in shares or buy ETFs.
FAQ – Frequently asked questions
