We hold your cash in escrow accounts with our partner banks. As long as the deposited funds are not invested, they earn interest. We then forward the interest, minus any costs, to your cash account.
We now apply an interest rate of 4% on your cash up to €50,000.
To calculate the interest paid out, our partner banks use the ECB day-count convention (current/360 days). The same interest method is used to determine the interest you earn on your cash.
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 (based on the interest method "current/360 days") 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.