Do I have to pay taxes on forwarded interest?
For Customers in Germany, capital gains tax is automatically deducted from interest payments. Interest income can be offset against realized losses from ETFs, accrued interest from the acquisition of bonds, and derivative losses that do not result in total losses.
In addition, interest income also counts as investment income alongside dividends and capital gains. As of this year, capital gains up to €1,000 are tax-free in Germany.
For customers outside of Germany, 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?
To calculate the interest passed on,, 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 annual interest rate attributable to that day (based on the current/360 days interest method). 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 payout each month.
Do I receive interest on my invested amount or only on my cash balance?
You will receive forwarded interest on uninvested funds — this is any funds on your cash account that you have not yet invested.
Do I receive interest on limit orders?
Yes, reserved amounts blocked for limit orders are included in uninvested cash.
Is my money safe?
Deposits with our partner banks are protected by the Deposit Guarantee Scheme Directive 2014/49/EU and respective local laws, such as the Deposit Guarantee Act, up to an amount of €100,000.