Foreign brokers have broken into the market for remunerated accounts with interests that compete with those of traditional banks, and with operating conditions that allow users to monetize higher savings. In this way, the battle for liabilities that entities have been waging since the end of 2022 now has new players.
The last to shake up the ranking of remunerated accounts has been Freedom Finance Europe with its Account D product. The broker offers a remuneration of 2.50% annual APR, which makes this product, to date, the best paid offer. Despite this, the user must assess the level of connection that is required, since the broker requires having a commercial account to be able to operate in the remunerated one.
These financial agents usually act as intermediaries between the client and the company in exchange for a commission. However, they have now begun to gain ground in the liability market to prevent leakage of funds towards less risky products. Specifically, as explained by the financial comparator Kelisto to La Información, “they most likely know that their clients, despite being riskier investors, may be considering moving part of their portfolio – however small it may be – to risk-free products, given that the profitability of deposits begins to increase”. Therefore, brokers seek to supply the demand of their users so as not to lose their savings.
In addition, Freedom Finance offers an account paid in dollars, so if the client is willing to assume the currency risk in the event that it is not the user’s currency -the fluctuation from one currency to another- they have the option of making their money profitable with a 3.00% APR. In addition, the broker’s product does not establish any maximum to invest, so it allows those users who have more savings to make their money profitable with some risk.
In second place, in terms of remuneration in euros, Scalable Capital stands out with interest of 2.30% APR, thus improving the bank’s offers. Although this broker limits the figure to invest in 100,000 euros. So that the user who is interested in the products of these two financial agents, must appreciate the economic difference between the profitability achieved and the commissions that both platforms charge.
If the client prefers to opt for a remuneration in dollars, inbestMe offers up to 4.00% in exchange for his money. Specifically, this product allows you to invest from $4,000 (without limiting the maximum amount). In addition, the broker also has a remunerated account in euros, with an interest of 1.90% APR. In this case, the minimum amount is 1,000 euros. Finally, Trade Republic stands out, which sells an account with a 2.00% APR, remuneration that is in line with the best offers from traditional entities. The product is available from one euro, but limits the maximum amount to 50,000 euros.
Who guarantees the money?
The interesting thing about Trade Republic is that, in addition to not requiring any connection or commission, it saves the money in a global account at Solaris Bank, regulated by the Central Bank of Germany and adhered to the Deposit Guarantee Fund (FDG) of said country. Just like Scalable Capital, which holds the balance at Baader Bank AG, which itself is protected by the German FDG up to an amount of 100,000 euros.
However, for its part, Freedom Finance Europe only guarantees up to 20,000 euros per holder because its support comes from the Cyprus compensation fund, which insures the money and assets of its clients in the event that the broker has financial problems for this amount. according to Kelisto assures. In turn, inbestMe has the Investment Guarantee Fund coverage (FOGAIN), which protects up to 100,000 euros per entity and owner, as well as the FDG, which is the fund in charge of insuring the money of clients from remunerated accounts, deposits and other banking products.
Better remunerated accounts in more traditional entities.
Faced with these new players in the market for remunerated accounts, the bank’s offers are being consolidated, which, although at a national level still do not dare with the highest interestimply a less complex operation with respect to currency risk and the guarantee of profitability.
Specifically, Banco Sabadell and MyInvestor are the two entities that offer the highest rate, 2.00% APR. However, while the first stops the possibility of accessing its product at 30,000 euros, the second extends the maximum amount to 50,000 euros. However, Orange Bank closes the top three accounts remunerated by banks with its 1.5% APR interest aimed at those who are already clients of the neobank. While for those who are not, the promotion drops to 1.3%. In this way, the entity reinforces the link of users who already have one of its products.
So while bank rates closely follow broker rates, investment conditions vary. Therefore, each user can opt for one type of product over another depending on what interests them the most: if what they are looking for is to make a very high profit and can assume the currency risk, they should evaluate the most innovative option of the brokers. ; however, if the user is interested in remunerating lower savings, it can be adhere to the guarantee and interest offered by the bank.
