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#1 06-11-2023 14:29:54

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XTB offers up to 5% interest on your unused account deposits

XTB offers up to 5% interest on your unused account deposits
Looking for new ways to continually expand its client base, Poland's XTB has adopted a growing industry trend by introducing remuneration of uninvested funds for all traders. The publicly listed fintech will now offer up to 5% interest on uninvested deposits in EUR, USD, GBP and PLN.

Interest will be calculated daily and deposited on a monthly basis. The interest rate will be activated automatically for all new and existing customers, regardless of the amount of uninvested funds in their accounts.

The interest rate varies by country. From today, a promotional offer will apply, during which the interest rate can reach 5% for deposits in USD, 3.8% for deposits in EUR, 4% for deposits in PLN and 4. 9% for deposits in GBP. After the end of the promotion (which will last until 12 November), the interest rate will be reduced to 2-2.5%, depending on the currency.

Omar Arnaout, CEO of XTB, indicated that investors can withdraw accrued interest at any time within five business days of the following month. He revealed that the company also plans to add other currencies to the offering in the future.

"We are working on adding local currencies CZK and RON," Arnaout says. The CEO adds that XTB is constantly looking for ways to offer its traders more passive forms of investing and earning, even when they are not actively investing.

Following ETFs, it's the turn of idle funds to generate interest
XTB recently offered its clients an ETF-based product for long-term passive investing, and is now adding another savings option.

"We fully recognise that our traders are looking for extra ways to put their money to work while waiting for market opportunities to start actively investing. In line with our 'one app - many possibilities' approach, we offer them a tool to enable them to benefit from rising interest rates while guaranteeing the liquidity of their funds," adds Mr. Arnaout.

As he admits, the main goal of the broker is to constantly expand its client base, and the introduction of interest for uninvested capital is intended to "encourage potential clients to open up accounts at XTB."

The fight for customers is clearly visible in XTB's latest report for the third quarter, which, despite a 28% drop in revenue due to reduced market volatility, saw a 46% growth in the number of active users.

More and more companies are offering interest

In a context of rising interest rates, savings accounts have once again become an interesting and safe alternative for saving money. This trend could lead consumers to prefer to keep their money in a deposit account rather than a brokerage account. As a result, neobanks and retail brokerage firms began offering interest on uninvested funds this year.

In May, for example, Swissquote announced this offer in response to sharp increases in interest rates in Switzerland. In October, Amsterdam-based BUX presented a similar offer, and in the meantime Robinhood also introduced it.

XTB's initiative could encourage other brokers in the FX/CFD sector to offer a similar solution to their clients.

About XTB

XTB Group is a leading provider of crypto CFDs alongside 2,100 forex, stock, index, commodity and ETF CFDs. The multi-regulated broker holds licenses with several trusted agencies, including the UK's Financial Conduct Authority (FCA) and the Cyprus Securities & Exchange Commission (CySEC).

Clients can invest and speculate with up to 1:30 leverage and can use the broker's mobile trading alert service to gain market insight. XTB offers two real accounts, aimed at retail traders and professional investors.

"Anything worth having is worth going for - all the way." - J.R. Ewing


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