Trade Republic, XTB and other ‘non-banks’ launch to remunerate the savings of clients waiting for the entities

by archynewsy
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The pressure is growing on the banks. Customers want performance for their money and are increasingly hesitant about different alternatives. It is the perfect breeding ground for new financial players such as brokers, neobrokers and investment platforms who are beginning to launch themselves into the remuneration of capital to win over savers eager for remuneration. The battle, here, is served.

Signatures like Trade Republic o XTB They have been the last to join the competition, announcing remunerations of up to 4% that have encouraged the interest of individuals. This is what Trade Republic recognizes in response to questions from Economic Newswhere they confirm that the lack of remuneration by the large banks has redirected many savers towards their services.

Remuneration by investment platforms of this type had not occurred because interest rates were at historic lows. The novelty comes precisely from the change in monetary policy of the ECB and the reluctance of the large traditional banks to pay for the deposits from its retail customers. While large entities delay their decision, the battle for savings continues at other levels.

When navigating the remuneration table of brokers and neobrokers, clients must be clear that they are not banks, nor do they operate as such, nor does the remuneration fall on deposits or standard savings accounts. As they are investment platforms, the remuneration falls on the money that users are not using to invest, money that is kept in cash accounts created for this purpose. This is confirmed from the National Securities Market Commission (CNMV), which supervises the marketing of the investment products offered by said entities, but not the entities themselves. Sources from the markets regulator explain that the regulations allow these remainders to be remunerated for a short period of time.

In the case of XTB, that period is, at most, three months. The broker has just announced that its users, both current and new, will begin to receive interest on their capital tied up in their account. “Specifically, 3.8% over 3 months for new clients and 2% for existing clients,” according to the note published by the company.

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