Exclusive: XTB to Offer up to 5% Interest on Idle Client Deposits

by Damian Chmiel
  • On Monday, XTB is introducing a new savings product.
  • As the brokerage's CEO admits, the move aims to maintain the growth momentum in active clients.
XTB Headquarter in Warsaw, Poland
XTB Headquarter in Warsaw, Poland

Seeking new ways to continually expand its client base, XTB, a broker of Polish origin, has embraced a growing industry trend by introducing interest in uninvested funds for all clients. As Finance Magnates learned, the publicly traded fintech will now offer up to 5% interest on idle deposits in EUR, USD, GBP, and PLN.

XTB Offers Interest on Uninvested Funds for All Clients

Starting on Monday morning, XTB will start a campaign promoting its new offer, which allows clients to earn interest on funds deposited but not actively uninvested, the company exclusively revealed to Finance Magnates.

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

The interest rate varies by country. From 6 November, a promotional offer will apply, during which the interest rate will be up to 5% for USD deposits, 3.8% for EUR, 4% for PLN, and 4.9% for GBP. After the promotion ends (which will last until 12 November), the interest rate will be reduced to 2-2.5%, depending on the currency.

Omar Arnaout, CEO at XTB
Omar Arnaout, CEO at XTB

Omar Arnaout, the CEO of XTB, in an interview with Finance Magnates, shared that investors can withdraw the accrued interest within five business days of the following month at any time. He disclosed that the company also plans to add more currencies to the offer in the future.

"We are working to add local currencies as well – CZK and RON," Arnaout stated. The CEO added that the company is constantly looking for ways to provide its clients with more passive forms of investing and earning even when they are not actively investing.

After ETFs, It’s Time for Interest on Idle Funds

Recently, XTB offered its clients an ETF-based product for long-term passive investing, and now it adds another savings option.

"We are fully aware that our clients are looking for additional ways to put their money to work while waiting for market opportunities to start investing actively. In line with our approach 'one app – many possibilities', we’re offering them a tool to benefit from rising interest rates while ensuring the liquidity of their funds," Arnaout added.

As he admitted, the main goal of the broker is to constantly expand the client base, and introduce interest in uninvested capital is meant to "encourage potential clients to set up their investment account with XTB."

The fight for clients is clearly visible in XTB's latest report for the third quarter, which, despite a drop of 29% in revenue due to decreasing market volatility , the company saw growth of 47% in the number of active users.

More Companies Are Offering Interest

In an environment of rising interest rates, savings accounts have once again become an interesting and safe alternative for saving money. This trend could potentially cause consumers to prefer keeping their cash in a deposit account rather than in a brokerage account. As a result, neobanks and retail trading companies have started to offer interest on uninvested funds this year.

In April, for instance, Swissquote announced this in response to strong interest rate hikes in Switzerland. In September, Amsterdam-based BUX presented a similar offer, and in the meantime, Robinhood has also introduced it.

XTB's move may cause more brokers in the FX/CFD industry to offer their clients a similar solution.

Seeking new ways to continually expand its client base, XTB, a broker of Polish origin, has embraced a growing industry trend by introducing interest in uninvested funds for all clients. As Finance Magnates learned, the publicly traded fintech will now offer up to 5% interest on idle deposits in EUR, USD, GBP, and PLN.

XTB Offers Interest on Uninvested Funds for All Clients

Starting on Monday morning, XTB will start a campaign promoting its new offer, which allows clients to earn interest on funds deposited but not actively uninvested, the company exclusively revealed to Finance Magnates.

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

The interest rate varies by country. From 6 November, a promotional offer will apply, during which the interest rate will be up to 5% for USD deposits, 3.8% for EUR, 4% for PLN, and 4.9% for GBP. After the promotion ends (which will last until 12 November), the interest rate will be reduced to 2-2.5%, depending on the currency.

Omar Arnaout, CEO at XTB
Omar Arnaout, CEO at XTB

Omar Arnaout, the CEO of XTB, in an interview with Finance Magnates, shared that investors can withdraw the accrued interest within five business days of the following month at any time. He disclosed that the company also plans to add more currencies to the offer in the future.

"We are working to add local currencies as well – CZK and RON," Arnaout stated. The CEO added that the company is constantly looking for ways to provide its clients with more passive forms of investing and earning even when they are not actively investing.

After ETFs, It’s Time for Interest on Idle Funds

Recently, XTB offered its clients an ETF-based product for long-term passive investing, and now it adds another savings option.

"We are fully aware that our clients are looking for additional ways to put their money to work while waiting for market opportunities to start investing actively. In line with our approach 'one app – many possibilities', we’re offering them a tool to benefit from rising interest rates while ensuring the liquidity of their funds," Arnaout added.

As he admitted, the main goal of the broker is to constantly expand the client base, and introduce interest in uninvested capital is meant to "encourage potential clients to set up their investment account with XTB."

The fight for clients is clearly visible in XTB's latest report for the third quarter, which, despite a drop of 29% in revenue due to decreasing market volatility , the company saw growth of 47% in the number of active users.

More Companies Are Offering Interest

In an environment of rising interest rates, savings accounts have once again become an interesting and safe alternative for saving money. This trend could potentially cause consumers to prefer keeping their cash in a deposit account rather than in a brokerage account. As a result, neobanks and retail trading companies have started to offer interest on uninvested funds this year.

In April, for instance, Swissquote announced this in response to strong interest rate hikes in Switzerland. In September, Amsterdam-based BUX presented a similar offer, and in the meantime, Robinhood has also introduced it.

XTB's move may cause more brokers in the FX/CFD industry to offer their clients a similar solution.

About the Author: Damian Chmiel
Damian Chmiel
  • 1378 Articles
  • 28 Followers
About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
  • 1378 Articles
  • 28 Followers

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