Do I have to pay taxes on forwarded interest?
Yes, interest income is taxable.
For customers in Germany France and Italy, capital gains tax is automatically deducted from interest payments.
For customers outside of Germany France or 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?
Trade Republic IBAN users in Germany, France 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?
Your cash deposits are distributed among partner banks, such as Deutsche Bank, HSBC or J.P. Morgan and for higher balances are further diversified into liquidity funds. Your deposits on each escrow account are protected with up to 100,000 € respectively. All relevant information on deposit protection of each partner bank can be seen in the app.
Cash deposited in the liquidity funds are directly held on a segregated custody account. Liquidity funds’ allocations follow the same strict safeguarding rules that are in place for stocks and cash deposits. This means that your assets are segregated from corporate assets. Hence, for liquidity funds, deposit guarantee schemes do not apply.