Did TR’s interest rate stop being tied to the ECB’s rate?
With the announcement of new customers getting a 3% rate, I noticed TR’s website stopped referring to the ECB’s interest rate.
In the past, the website said the following:
“How does Trade Republic calculate the interest? We pass on the ECB interest rate of currently 2 % p.a. on your cash up to €50,000.”
Now it says: “How does Trade Republic calculate the interest? 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.”