Altered Trade Republic Interest Rates: Is the Current Increase Justified?
Trade Republic Reduces Savings Account Interest Rates in Response to ECB Rate Cut
Following the European Central Bank's (ECB) decision to reduce its key interest rate from 3.0% to 2.75%, neobrokers Scalable Capital and Trade Republic will adjust the interest they offer on their customers' deposits. This change takes effect from February 5, 2025, as Trade Republic will now offer 2.75% interest on its checking account, down from the previous 3.0%.
However, despite the rate reduction, Trade Republic's offer remains attractive, particularly for those seeking a straightforward savings option or looking to leverage the neobroker's extensive additional services, such as low-cost brokerage services and a Saveback card. These features are also popular in countries like France and Italy, as highlighted in recent reports.
Yet, for those specifically seeking the highest interest rates for their savings, competitive short-term offers may provide better returns, offered at 3.25% interest and a bonus of 40 euros for the first three months after account opening. To explore such offers, learn more here.
For a comprehensive comparison of various savings account options, consider the BÖRSE ONLINE daily money market comparison.
Contextual Savings Rates Across Europe
Trade Republic's interest rates on savings accounts fluctuate depending on the product and market conditions. Its child savings account, for example, is linked to the ECB rate, mirroring central bank interest rates [1]. Compared to many traditional banks, Trade Republic offers comparatively higher interest rates on uninvested cash [2].
Relevant to this context, the savings account interest rate in Ireland, where Trade Republic operates, was lowered from a high of 2.75% to 2.25% in May 2025 [4]. This indicates that Trade Republic's savings rates remain competitive, although they have seen a downward adjustment in line with broader European financial trends.
On a comparative note, across Europe, savings accounts offered by neobanks like Bunq and N26 have also undergone reductions. For instance, Bunq's savings rates dropped to around 2.26%, while N26's rates were reduced from 1.7% to 1.3% on standard accounts and premium 'Metal' accounts currently yield approximately 2.5% [4]. This points to a general trend of decreasing savings interest rates among neobanks.
On the other hand, traditional banks in countries like France and Italy generally provide lower savings account interest rates, often below 1%, especially for standard regulated savings accounts. These banks tend to offer regulated savings products with tax advantages but lower nominal rates [5].
In summary, Trade Republic's savings rates remain competitive among neobrokers but sit slightly below some other European neobanks, while traditional banks in France and Italy offer rates below 1%. However, in Belgium, Trade Republic's accounts are considered non-regulated savings products, subject to a 30% tax on interest gains without tax exemptions—a significant drawback when compared to regulated accounts in Belgium [3][4].
This comparative overview suggests that while Trade Republic is competitive among neobrokers, traditional banks in France and Italy typically offer lower savings account rates, though with different tax and regulatory advantages. Neobrokers generally provide higher nominal interest rates on savings accounts across Europe.
In the midst of financial changes, Trade Republic adjusts the interest on checking accounts from 3.0% to 2.75%, keeping a competitive edge among neobrokers despite the trend of decreasing savings interest rates. However, for individuals prioritizing the highest rates for their savings, traditional banks in France and Italy offer rates below 1%, though with different tax and regulatory advantages.
