Trade Republic raises the stakes among neobanks and increases the profitability of its account to 4% for new customers

Neobanks in Spain are competing for savings, offering up to 4% interest on limited deposits. Trade Republic leads with a 4.07% rate for new clients until March 2027. This follows Monzo's entry, which offers 4% on deposits up to €5,000 for 12 months. Revolut also announced a 3.51% rate for new clients for four months. Trade Republic's strategy includes shifting client funds to money market funds, raising concerns about deposit security compared to traditional banks. The ECB's interest rate is currently 2.5%, with expectations of a rise to 2.75% in December.