The competition for client deposits at European neobrokers is heating up.
Following the recent ECB rate hike, Amsterdam based neobroker BUX is taking a page out of the playbook of some of its US counterparts (such as Interactive Brokers), announcing that all its BUX Zero customers will receive a 2.01% per annum interest compensation on their uninvested cash balances.
BUX said that it is the first and only brokerage firm in the Netherlands offering an interest rate of more than 2% on cash balances. The offer is valid as of 5 April 2023 and has no timing restrictions or fixed holding periods.
The interest rate is valid for all uninvested cash balances in BUX Zero up to €25,000. All cash accounts with BUX are held with ABN AMRO Clearing Bank and are protected up to €100,000 under the conditions of the Dutch Central Bank’s Deposits Guarantee Scheme (DGS).
Yorick Naeff, CEO of BUX, said,
“With increasing interest rates, people are more and more looking to earn a return on their cash. Whereas no other Dutch brokerage firm offers such an attractive interest rate, at BUX we believe in building up wealth for the future in any way. By offering 2.01% interest, we add another opportunity for our customers to invest towards their future.”
The 2.01% interest news follows last month’s announcement of BUX’s partnership with BlackRock to offer unique and innovative savings plans, all part of BUX’ longer term strategy to become a leading broker across Europe. With more than a million users, BUX claims to already be the largest neo-broker in the Netherlands and Belgium and seeks to further solidify its position.
BUX clients can invest in (fractional) shares, ETFs, and crypto via one native mobile application. Creating an account on mobile or desktop takes on average 5 minutes. BUX’ mission is to make investing easy and affordable for all by empowering people to make better financial decisions, whatever their goals.
BUX is currently available in the Netherlands, Belgium, France, Germany, Spain, Italy, Austria, and Ireland.
