Do I have to pay taxes on forwarded interest?
Yes, interest income is taxable.
For customers in Germany, Austria, France, Spain and Italy, capital gains tax is automatically deducted from interest payments.
For customers outside of Germany, Austria, France, Spain and Italy, withholding taxes on interest are not applied. It’s up to you to declare interest income in your tax return according to your local tax laws.
Why is the credited interest different from what I calculated?
We pass on the ECB interest rate of currently 2% p.a. on all cash deposits.
- Trade Republic IBAN users in Germany, Austria, France, Spain and Italy earn interest on unlimited uninvested cash.
- Trade Republic IBAN users in other jurisdictions and Non-Trade Republic IBAN users earn interest on uninvested cash up to 50,000 €.
Interest is accrued daily and paid out monthly. This means that on each day, at the end of the day, we determine the balance of your cash account and multiply this amount by the share of the applicable interest rate per year attributable to the respective day. Then all the values of the individual days will be summed up and the total amount will be forwarded to your cash account as a monthly payout.
Do I receive interest on my invested amount or only on my cash balance?
You will receive interest on your cash balance.
Do I receive interest on limit orders?
Yes, reserved amounts blocked for limit orders are included in uninvested cash.
Is my money safe?
Cash balances at Trade Republic’s trusted partner banks accounts are protected by the deposit protection guarantee up to €100,000. For Trade Republic IBAN customers in Germany, France and Italy, funds diversified into liquidity funds are segregation protected by safeguarding them within separate custody accounts.
- Deposit protection: Funds held at our partner banks Citibank Europe plc, Crédit Agricole, Deutsche Bank AG, HSBC Continental Europe S.A. and J.P. Morgan are protected up to €100,000 per account and customer.
- Separate custody account: The funds held in liquidity funds are held directly in a separate custody account. These assets are strictly safeguarded and segregated from Trade Republic’s own assets. They are protected without limit.