Trade Republic 3.00% interest: Is it safe? How does it work?

Trade Republic is one of many brokers that pay interest on uninvested cash. New clients in several countries currently get 3.00% a year on up to €50,000, while existing clients earn the European Central Bank (ECB) deposit facility rate, which rose to 2.50% on 16 September 2026:

How is this rate set? Is my money protected? Is there a catch? Let’s take a look.

How much interest does Trade Republic pay?

Trade Republic currently has two rates:

• New clients: 3.00% a year on cash balances up to €50,000 (shown as 3.04% TAE on Trade Republic’s Spanish site, September 2026). The offer is available in several countries, including Spain, Portugal, Italy, France and the Netherlands, but not to new clients in Germany.
• Existing clients: the ECB deposit facility rate, currently 2.50% a year (2.53% AER) since 16 September 2026, with no upper limit on the balance. New clients also earn this rate on any amount above €50,000.

The deposit facility rate is the rate banks earn when they deposit money with the ECB. By paying this rate, Trade Republic passes the central bank rate on to you, while many banks pay less and keep the difference. The 3.00% rate for new clients is above the ECB rate, so we see it as a promotional offer and a marketing cost for Trade Republic.

In 2026, the ECB raised its rates twice. In June, the deposit facility rate went from 2.00% to 2.25%, and on 10 September the ECB raised it to 2.50%, with effect from 16 September 2026. Trade Republic’s rate for existing clients followed both increases.

Where is your cash held?

Trade Republic is a fully licensed German bank (Trade Republic Bank GmbH), and clients get an IBAN for their account. In several countries, such as Portugal, Spain, France, Italy and the Netherlands, Trade Republic also offers local IBANs.

Your uninvested cash can be held as a deposit with Trade Republic or with partner banks, or invested in money market funds, which invest in low-risk, short-term debt securities. The interest you earn depends mainly on the ECB’s decisions.

To check your IBAN, open the app, tap your avatar in the top left corner and go to “Account”.

Is the Trade Republic interest safe? What are the risks?

Yes, but it’s important to understand the details (read also our article on Trade Republic’s safety).

First, cash held as a deposit is protected up to €100,000 per depositor by the German statutory deposit guarantee scheme (Entschädigungseinrichtung deutscher Banken), under EU rules. As Trade Republic’s Depositor Information Sheet explains, deposits would be repaid up to €100,000 if the bank became insolvent. The limit applies per bank: if part of your cash sits at a partner bank where you also have your own account, both balances share that bank’s €100,000 limit.

Second, money in money market funds (MMFs) is an investment, not a deposit. These funds aim to keep a stable value, but their price can still move. As securities, they are held separately from Trade Republic’s own assets. If Trade Republic failed and could not return them, the German investor compensation scheme would cover 90% of the loss, up to €20,000. This protection does not cover losses from the fund’s value falling.

We asked the support team to explain the difference between a “deposit” and a “liquidity fund”, and this was their answer:

How can I start earning interest?

First, you need to activate interest on your cash: tap your avatar in the top left corner and select “Interest”. Once you accept the terms and conditions, your uninvested cash will automatically start earning interest.

In “Cash”, the “Interest” tab shows the current annual rate and the interest earned so far. In “Transactions”, you can see all interest payments, deposits and withdrawals.

Is the Trade Republic interest rate fixed or variable?

The rate is variable. For existing clients, it follows the ECB deposit facility rate. For new clients, the 3.00% rate is a promotional rate, so check in the app how long it applies and what rate you will earn after that.

The ECB Governing Council holds eight monetary policy meetings a year, roughly every six weeks, where it sets the key interest rates for the euro area. The Governing Council is made up of the six members of the ECB’s Executive Board and the governors of the national central banks of the euro area countries.

You can check the meeting dates in the ECB calendar. The next monetary policy decisions are scheduled for 29 October and 17 December 2026.

If the ECB raises or lowers its deposit facility rate, the interest paid to existing clients will likely change in the same direction.

Are there any limits?

Yes, keep these points in mind:

1. The 3.00% rate for new clients applies to cash balances up to €50,000. Above that, and for existing clients, the ECB rate applies with no upper limit.
2. You can use your money whenever you need it, for withdrawals or investments, with no interest penalties.
3. Interest is calculated daily and paid monthly.
4. Interest is only paid on euro balances.

How much can I earn? Examples

Here is how much interest you would earn in a year, before tax, if rates stayed the same (they are variable, so real results will differ):

• New client with €10,000: €10,000 × 3.00% = about €300.
• New client with €60,000: €50,000 × 3.00% + €10,000 × 2.50% = €1,500 + €250 = about €1,750.
• Existing client with €10,000: €10,000 × 2.50% = about €250.

Because interest is paid monthly and added to your cash, the effective annual rate is slightly higher than the nominal rate, which is why Trade Republic shows 3.00% as 3.04% TAE in Spain (and 2.50% works out at about 2.53%).

Do I have to pay taxes on Trade Republic interest?

Yes, in most cases. Interest is usually taxable in your country of residence.

This article is for Trade Republic clients in many countries, so we can’t cover each country’s rules or your personal circumstances. In some countries, such as Portugal, Trade Republic offers simplified tax reporting, but you are still responsible for your tax return. Check with your tax authority or a tax adviser.

Trade Republic alternatives for interest

Trade Republic isn’t the only option. Its closest competitor, Scalable Capital, raised its Overnight account rate to 2.60% on 1 September 2026, and also launched fixed-term accounts:

For existing clients, Scalable’s Overnight account currently pays slightly more than Trade Republic, while new clients get the best rate at Trade Republic on their first €50,000. Keep in mind that Scalable pays interest on a separate savings account, not on cash in the broker account. Compare the conditions, limits and protection before you choose.

See our full list of the best brokers and digital banks for interest on cash in EUR.

Bottom line

Trade Republic’s interest on uninvested cash is an easy way to earn interest on money you are not investing yet. New clients get 3.00% on up to €50,000, and existing clients earn the ECB deposit facility rate, which rose to 2.50% on 16 September 2026. The downside is that interest is only paid in euros.

Trade Republic Bank GmbH is supervised by BaFin, Germany’s Federal Financial Supervisory Authority, and by the Deutsche Bundesbank. Cash deposits are protected up to €100,000 by the German deposit guarantee scheme.

Have any feedback or questions about this broker? Read our review and get in touch to share your experience.