Savings platform Trade Republic is to offer customers 2 per cent interest on the cash balances held in their accounts, in line with the current deposit rate from the European Central Bank (ECB).
The policy, which will apply to all customers, is not a limited time offer and applies to those with uninvested cash balances of up to €50,000, it said. It also puts the platform ahead of traditional banks in offering the ECB rate to savers. Interest on balances is calculated in real time and paid out monthly.
“With 2 per cent 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,” Christian Hecker, co-founder of Trade Republic, said. “Exactly four years ago, we were among the first providers in Europe to introduce commission-free investing. Now, we are taking another step on our mission to make wealth accumulation possible for everyone.”
The ECB has raised interest rates from historic lows in recent months. However, while mortgage interest rates have seen a rise, Irish lenders have largely not yet passed on the increase to deposit rates.
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Trade Republic’s move on deposit rates marks a further expansion of the platform’s services, which officially launched in Ireland in October last year.
The savings platform offers customers easier access to capital markets, opening up investment in more than 8,000 Irish, European, Asian and US stocks, with more than 1,100 ETFs also available. Trade Republic also offers savings plans that can help Irish users get started more quickly and easily, allowing users to automate investing in the stock markets.
Trade Republic, founded in 2015 by Christian Hecker, Thomas Pischke and Marco Cancellieri, is pitching itself as a potential counter to the impact of inflation on savings in bank accounts, with people facing the loss of up to 60 per cent of their purchasing power over 10 years.
Accounts can be opened through the mobile app and on desktop in a few minutes, and are aimed at those who are both fiscally and physically resident in Ireland.
