XTB has unveiled a new offering that allows all its clients to earn interest on uninvested funds. This publicly traded fintech firm will now provide interest on idle deposits in multiple currencies, including EUR, USD, GBP, and PLN, with rates reaching up to 5%.

Starting today, XTB is going to launch a promotional campaign to introduce this new feature, which enables clients to earn interest on funds deposited but not actively invested. The interest will be calculated daily and paid out on a monthly basis, automatically activating for all new and existing clients, regardless of the amount of uninvested funds in their accounts.

The interest rates offered by XTB will vary by country. As of November 6th, a promotional offer will be in effect, with interest rates reaching up to 5% for USD deposits, 3.8% for EUR, 4% for PLN, and 4.9% for GBP. After the promotional period, which lasts until November 12th, the interest rate will be adjusted to a range of 2-2.5%, depending on the currency.

XTB introduces Interest on Uninvested Funds

XTB’s CEO, Omar Arnaout, revealed that investors can withdraw the accrued interest within five business days of the following month at any time. He also disclosed the company’s plans to expand the offering to include more currencies in the future, mentioning CZK and RON as potential additions. Arnaout emphasized XTB’s commitment to providing clients with passive investment opportunities, even when they are not actively trading.

XTB has been actively expanding its range of offerings for clients in recent times. In addition to introducing interest on uninvested funds, the company recently launched an ETF-based product for long-term passive investing. According to Arnaout, this move is in response to the needs of their clients, who are looking for ways to maximize the potential of their funds while awaiting investment opportunities.

The primary goal for XTB is to continuously expand its client base. The introduction of interest on uninvested capital is going to attract potential clients to set up their investment accounts with the company. This strategy appears to be working, as the company reported a 47% growth in the number of active users in the third quarter despite a 29% drop in revenue due to decreasing market volatility.

With rising interest rates rekindling interest in savings accounts as a safe alternative for keeping money, XTB’s move is part of a larger trend in the financial industry. Other neobanks and retail trading companies, such as Swissquote, BUX, and Robinhood, have also introduced similar offerings to attract clients.

XTB’s innovative approach may set a precedent in the FX/CFD industry, prompting other brokers to offer similar solutions to their clients and further intensifying the competition for customers in this sector.

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