Trade Republic launches Spanish IBAN with 2.27% interest on all balances

Trade Republic becomes a bank in Spain: national IBAN and uncapped 2.27%

On June 5, 2025, Trade Republic activated its Spanish IBAN and removed the €50,000 limit that previously capped account remuneration. All cash balances now earn 2.27% TAE unconditionally, with interest calculated daily and paid monthly. The German firm, supervised by Banco de España and licensed by the European Central Bank, is moving from being a broker with an account to becoming a primary bank. The move has rewards and costs: migration to the national IBAN is pogre and, according to clients, not always voluntary.

What changes with the Spanish IBAN and what is lost

The Spanish IBAN is not just cosmetic. It allows direct tax payments from the account and eliminates obligations like Modelo 720, the form previously required for holding money abroad. In return, the account falls under the Spanish Tax Agency's umbrella without prior request. This sparks debate.

Some see it as convenience; others as surrender. "As soon as the switch to the Spanish IBAN applies, we'll need another neobank with a foreign IBAN," argues those who value discretion. Others note that automatic information exchange with Germany already existed, so the IBAN change alters little. Regardless, Hacienda (the Spanish Tax Agency) clearly wins.

Is Trade Republic a safe bank for holding cash?

Cash is covered up to €100,000 per client via the deposit guarantee fund, held in collective accounts at Deutsche Bank, J.P. Morgan SE, and Citibank Europe plc. Securities, however, are not covered by this guarantee: they remain client property, held in domestic and international custodians.

Fine print doesn't convince everyone. Some point out funds aren't in individual accounts and customer service is slow or nonexistent. "Trade Republic is like Silicon Valley Bank. Not very secure," summarizes one extreme view. Conversely, user experience highlights instant transfers, a Visa debit card with 1% reinvested cashback, and a functional app. Trust here is built through small deposits.

The 2.27% rate and the battle for remunerated accounts

The rate isn't fixed: it tracks the ECB and falls when the ECB cuts rates. This explains why veteran clients recall when the account paid 4%, while today they see 2.27%, which some effectively calculate as 2.02%. Market comparison is inevitable: some claim 2.5% options exist without ties, while others respond that none offer unlimited balance remuneration.

The "no conditions" promise is the hook. The reasonable doubt: will it hold once the network is full of users? The answer lies not in brochures but in the entity's history, having already cut rates when the ECB pivoted.

Behind the scenes: double withholdings and denied transfers

Migration hasn't been smooth. There are reports of transfers rejected for "security reasons" by Spanish entities after the IBAN change, resolved via calls and 24-hour windows. A documented error occurred with dividends from a Spanish company: tax withholding was applied twice to the same dividend, without appearing in the app. The issue was detected only through external spreadsheet accounting. The entity acknowledged the error via chat, with reimbursement pending.

For portfolios heavy in Spanish dividends, manual reconciliation is advised. Tax automation is a promise, not a guarantee.

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With the Spanish IBAN, uncapped remunerated account, and funds starting at €1, Trade Republic has the tools to be a primary bank. What it lacks, for now, is blind trust from part of its clientele. And there, between 2.27% and skepticism, the matter rests.