Trade Republic: Activate daily interest rates – here’s how

With Trade Republic, you can invest your money and earn interest. However, you must first activate this feature in order to receive 2 percent interest on your assets.

Tip for Trade Republic savers: How to activate the higher interest rates

The online broker Trade Republic is currently offering 2 percent interest on your invested money. However, you must first take action to receive this interest rate.

• Open the Trade Republic app and log in with your access data. If you do not yet have an account with Trade Republic, you must first register and verify yourself as a customer.

• Under “Explore Trade Republic” on your home page, you will find a gray box with the heading “Get 2% interest p.a.” Tap on it.

• An overview page will appear explaining how the interest on your credit balance works. Tap on the blue button “Activate interest rate.”

• You will be asked again if you are ready to earn interest. Tap on the blue “OK” to activate your interest.

• Tip: If the box with the interest rate is not displayed on your home page, swipe back and forth between the pop-ups under “Explore Trade Republic” and make sure you have the latest version of the app installed.

How interest works at Trade Republic

Whereas previously interest was only paid on overnight money, Trade Republic has now made a change: customers can now earn interest on their entire assets.

• Trade Republic passes on the European Central Bank’s key interest rate in full to its customers. In the past, this rate has fallen from 2.5 to 2.25 percent. The interest rate at Trade Republic is now only 2 percent.

• In return, you will receive this interest on an unlimited amount of assets if you use Trade Republic’s checking account. The interest rate applies to uninvested credit balances.

• Interest is calculated daily and paid out monthly. There is a statutory deposit guarantee of up to €100,000.

• The interest earned is subject to capital gains tax. Trade Republic automatically deducts this tax so that investors do not have to worry about it themselves when filing their tax returns.

• In order to take advantage of the saver’s allowance and thus receive interest up to a certain amount tax-free, it is advisable to submit an exemption order.