Trade Republic is continuing to expand its offering. The neobroker, which received a full banking license at the end of 2023, is now introducing an interest-bearing current account after a payment card. The first customers should be able to use the offer from next week.
Neobroker Trade Republic is introducing a new checking account, as the company announced on Tuesday. Customers of the Berlin startup, founded in 2019, can set up the new account as a salary account, transfer money to third parties, set up direct debits or add money to the app in real time – in short: in principle everything that you can do with a classic checking account is possible.
The account is to be rolled out gradually, with the company initially reporting that around four million users will gradually receive an IBAN for their current account. So far, the offer has been limited to trading in stocks, cryptocurrencies and bonds. As a Trade Republic spokesperson told star confirmed on the phone, the first customers will be notified by email and app starting next week and will be able to use the new offer.
The move comes as no surprise: Trade Republic had announced in December 2023 that it would launch its first online trading platform in the U.S. In an interview with Capital in January, company boss Christian Hecker said: “We want our customers to use their account with us not only for investing money.” Instead, the wish is that it is also used for spending money ().
Trade Republic wants to pay interest on current accounts without an upper limit
As a first step towards this goal, a payment card was introduced together with Visa. One percent of the transaction amount for payments made with this card goes into a selected savings plan, with the amount capped at 15 euros per month. The card was very popular and Trade Republic now wants to close the waiting list. According to the company, the payment card is now used by around one million people across Europe.
The company has also been paying interest on deposits for some time. Previously, this interest was limited to a balance of 50,000 euros. The upper limit is now to be lifted for the new current account. As before, the interest at the ECB level, currently four percent annually, is to be passed on to customers. According to Trade Republic, this cash balance will continue to be distributed among partner banks such as Deutsche Bank, HSBC or JP Morgan and, in the case of higher cash balances, will be diversified into the money market, according to the statement.
In 2019, Christian Hecker and two co-founders launched the online broker Trade Republic, which now has a total of four million customers across Europe. In the last financing round in 2022, the company was valued at five billion euros, according to Capital
Shell, Apple and Co. in the ranking
These companies made the highest profits in 2023
In the gallery: A gigantic turnover does not necessarily guarantee a huge profit – see Walmart. In contrast, a postal company makes it into the top 10.
Source: Stern
