Using a Cash Account is a safe and effective way to hold your cash that is available for you to invest with. All the money held in your Cash Account can be used directly for trading on your investment account.
Unfortunately, the Cash Accounts – like all other bank accounts that depend on the interest rates set by the European Central Bank – do have a downside. Namely, the possibility of a negative interest rate. The interest rate offered by flatexDEGIRO Bank for the Cash Account that is denominated in Euro is currently -0.50%. For all other Cash Accounts, there is currently no negative interest rate.
However, to limit the costs of investing with us, we partially compensate these interest costs. This is done on a non-committal basis in the following manner:
- Compensation will only be given for the first €2.500 in cash holdings for the Cash Account in your base currency (the Euro, for Finish clients). Negative interest on amounts higher than this will not be compensated.
- If you have paid €350 or more in transaction fees during a 60-day period, compensation will be given for the first €100,000 in cash holdings for the Cash Account in your base currency. This will be reviewed at the beginning of every month.