Neobroker BUX offering 2.01% interest on uninvested client cash
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.
April 5, 2023 @ 6:35 pm
This is BS press reporting from an app tryna cover the mess of their price increases. Commission prices are now some of the highest among neobrokers while everyone has to pay 2,99€ fee per month as a “service fee” just cos they say so. They’ve removed subscription fees for savings plans but that only benefits investors with three or more. In short, their changes only favour investors who are willing and able to invest long-term with large amounts of capital to shoulder the costs, i.e. the traditional investor, who isn’t likely to use a neobroker, plus their new darling, the crypto bros. The squeeze from Blackrock and Abn Amro on Bux’s balls is palpable. Maybe you should be asking why the startup’s overheads are so bloated at around 35m€/year…