Trading 212 is one of many brokers paying interest on invested cash (thirteen currencies), including EUR (2.40%), USD (3.30%) and GBP (3.55%):
When investing, your capital is at risk. If you enable interest, Trading 212 will hold your cash in qualifying money market funds and banks. Otherwise, your cash will be held only in banks. Interest applies on cash in an investment account. Terms apply.
How are the rates defined? Are the investments guaranteed? What is the difference between an APY and an APR rate? Is there any catch? Let’s dig in!
What interest is Trading 212 offering?
The answer depends on the currency you are referring to. Each interest rate follows the policy stated by its corresponding central bank. For instance, the interest rate paid in EUR is conditional on the European Central Bank’s (ECB) monetary policy decisions.
These are the rates paid per currency:
- EUR (Euro): 2.40%
- USD (United States Dollar): 3.30%
- GBP (British Pound Sterling): 3.55%
- CHF (Swiss Franc): 0.0%
- HUF (Hungarian Forint): 3%
- PLN (Polish Zloty): 2.50%
- CZK (Czech Koruna): 3.00%
- RON (Romanian Leu): 3.50%
- DKK (Danish Krone): 0.25%
- NOK (Norwegian Krone): 0.25%
- SEK (Swedish Krona): 0.25%
- CAD (Canadian Dollar): 0.0%
Users under FXFlat Bank GmbH can earn up to 3% p.a. interest on EUR balances, available to both new and existing users. This applies to residents of several European countries, including Austria, Denmark, Finland, France, Germany, Ireland, Luxembourg, the Netherlands, Norway, Sweden and Switzerland.
Looking for other brokers offering high interest? Check our broker interest tool!
How does Trading 212 offer such rates?
Trading 212 uses a combination of “qualifying money market funds (QMMFs), time deposits, and current accounts” to provide the rates stated on their platform. To help you understand each of these products, we have divided the information per segment:
Qualifying money market funds (QMMFs)
QMMFs are funds that invest in low-risk, short-term debt securities, such as government bonds, and aim to maintain stable share prices. What makes them “qualifying” is that the QMMF must meet higher regulatory standards for quality and liquidity, which makes them cash equivalents.
Money market funds are widely used by institutional investors, such as pension funds, insurance funds, and banks. In Europe, 1.4 trillion euros are invested in those financial vehicles.
A common example of a money market fund used by other brokers is the BlackRock ICS Euro Liquidity Fund. Please note, however, that Trading 212 does not publicly disclose the qualifying money market funds that are used to invest clients’ money.
Is the money in QMMFs protected?
Yes, your funds and assets (like the QMMFs) are covered by the €20,000 (EU clients) or the £85,000 (UK clients) protection under the Cyprus Investor Compensation Fund (ICF) and the Financial Services Compensation Scheme (FSCS), respectively.
Keep in mind that money placed with a QMMF is treated as an investment and not as money held with a bank.
Still, funds in QMMFs are held separately from Trading 212’s operational funds, meaning that in case something happens to Trading 212 (bankruptcy, for example), your money is intact from any actions from its creditors. In practice, you would only need to transfer your investment in the QMMFs to another broker.
Time deposits
A time deposit is an investment product in which a bank client (Trading 212 in this case) transfers a sum of money into a separate account for a fixed period of time to earn a predefined interest rate.
Current accounts
A current account is a simple bank account to manage your income and day-to-day expenses. It is money just parked in an account.
Is the Trading 212 interest safe? What are the risks?
Safety and Protections
- Interest and Protection Mechanisms: Trading 212 offers interest on uninvested cash by placing it in qualifying money market funds (QMMFs), time deposits, and current accounts with banks. For EU and UK customers, funds and assets are protected up to €20,000 and £85,000 under the ICF and the FSCS schemes, respectively.
Risks
- Investment Risk: QMMFs, while generally low-risk, are still subject to market fluctuations. In rare scenarios, such as financial crises, these funds can lose value, directly affecting the uninvested cash. This inherent risk means there is no absolute guarantee of safety.
Trading 212’s interest rates are competitive compared to other brokers and savings accounts. However, the lack of full protection on all funds and the inherent risks in QMMFs, even if very low, make it essential for users to weigh the benefits against potential risks. If you wish, you can read more about Trading 212’s safety in our blog.
If you decide that using Trading 212 is the best decision for you, you can take advantage of our promo code!
How can I start earning interest?
Firstly, you must manually enable interest on cash in your personal settings:
As soon as you activate it, you are able to deposit and start earning interest immediately:
You can also notice that your money is in Banks and also in QMMFs:
Are Trading 212 interest rates fixed or variable?
Interest rates are based on what Trading 212 can earn from their deposits and the QMMFs (Qualifying Money Market Funds). These rates are tied to the central banks’ reference rates – the European Central Bank (ECB) for EUR, the Bank of England for GBP, and the US Federal Reserve for USD.
So, if a central bank changes its policy by raising or lowering its key interest rates, the interest on cash will likely change in the same direction.
Trading 212’s interest rate is an APY – why does this matter?
The interest rate stated on the Trading 212 website is the Annual Percentage Yield (APY), also known as the Annual Equivalent Rate (AER). This rate applies when the investment product (uninvested cash, in our case) has more than one compounding period. In Trading 212, compounding is done daily.
By contrast, other brokers may quote the Annual Percentage Rate (APR) – the yearly nominal interest paid to investors that does not account for the compounding effect. For instance, Trade Republic‘s currently stated 2.25% annual rate is an APR, compounded monthly – but the announced rate doesn’t reflect the compounding.
To compare the two offers directly, we need to convert them to the same metric. If both are expressed as APY:
- Trading 212: 2.40%
- Trade Republic: ~2.27% (the APY equivalent of 2.25% APR compounded monthly)
If both are expressed as APR:
- Trading 212: ~2.37% (the APR equivalent of 2.40% APY compounded daily)
- Trade Republic: 2.25%
On either basis, Trading 212 currently offers a slightly higher effective rate. Let’s walk through the calculations using €1,000 of uninvested cash on Trading 212:
The general APY formula is:
(1 + r/n)n – 1, where:
- r = APR (nominal annual rate)
- n = compounding frequency (365.25 days; Trading 212 uses 365.25 to account for leap years)
To calculate the daily payment, the formula used is:
Daily Payment (DP) = Cash balance × [(1 + APY)^(1/365.25) – 1]
Applying this with a €1,000 balance at the current Trading 212 APY of 2.40%:
- Cash balance = €1,000
- APY = 2.40%
- DP = €1,000 × [(1 + 0.024)^(1/365.25) – 1]
- DP = €1,000 × (1.024^(1/365.25) – 1)
- 365.25th root of 1.024 ≈ 1.0000649
- DP = €1,000 × (1.0000649 – 1)
- DP = €1,000 × 0.0000649
- DP = €0.0649 per day (rounds to €0.06)
If you multiply €0.0649 by 365.25, you get €23.72 over a full year. On €1,000, that equates to roughly 2.37% – which is the APR equivalent of Trading 212’s 2.40% APY. The 0.03 percentage-point difference between the stated APY (2.40%) and the calculated APR (2.37%) comes entirely from the daily compounding effect.
Are there any constraints?
No, not at all. Key points to consider:
- No minimum or maximum amounts: whether you hold €100 or €1,000,000, you’ll receive interest on your full cash balance;
- You are free to use your money whenever needed (withdrawals or investments), with no interest penalties;
- Interest is paid daily.
Do I have to pay taxes on Trading 212 interest?
Yes, most likely. Except for special account types – like the Stocks & Shares ISA in the UK – taxes will be due on the interest you receive.
This article is intended for all Trading 212 clients across multiple jurisdictions. We can’t analyse each country’s tax rules in detail or factor in your personal circumstances – but you’re almost certain to owe some tax on this income. Please contact your tax authorities or a qualified tax adviser to determine the exact treatment in your country.
Is there something I should be aware of?
Yes – cash interest rates at Trading 212 and competitors track ECB monetary policy closely. On 17 June 2026, the ECB raised its deposit facility rate to 2.25% (from 2.00%, which had held since June 2025), and Trade Republic followed suit by raising its rate to 2.25% APR. Trading 212, in turn, currently offers an APY of 2.40% on EUR.
In EUR, the “deposit facility” rate (the interest rate earned by banks when depositing money at the ECB) is the rough ceiling for what brokers can sustainably pay on cash. Trading 212’s 2.40% EUR APY is slightly above the 2.25% ECB deposit facility rate, which means Trading 212 is likely earning a marginal premium via QMMFs (Qualifying Money Market Funds) that invest in short-duration government and high-grade corporate paper – introducing a small additional layer of risk relative to direct ECB deposits, but still within a conservative risk profile.
Trading 212 alternatives for interest
If you’re looking for alternatives to Trading 212’s interest offering, check our dedicated articles where we filter the best brokers and digital banks for earning interest on uninvested cash in EUR, USD, and GBP.
Bottom line
All in all, Trading 212’s interest on uninvested cash is a strong way to park your money and earn a rate often higher than what most retail banks pay (we also have plenty of guidance on how to invest in the stock market with Trading 212).
Trading 212 is supervised by several top-tier regulators, including the Financial Conduct Authority (FCA) in the UK, CySEC (Cyprus), and the Bulgarian Financial Supervision Commission (FSC), with additional regulatory oversight in other jurisdictions where it operates.
On the downside, the platform charges currency conversion fees (0.15% in the “Invest” account and 0.50% in the “CFD” account), which apply when converting one currency to another – worth factoring into your effective returns if you’re moving funds across multiple currencies.
Do you have any feedback or questions about Trading 212? Please consider reading our review and then get in touch to share your experience.
