With its new offering, XTB’s users can now earn up to 4.25% on their uninvested GBP balances. This means investors who keep their funds ready for trading are earning money on their balance without having to do complex financial gymnastics.
In fact, earning up to 4.25% on idle balances is so easy that it’s automatically applied to all eligible accounts, making this an attractive option for investors looking to earn passive income. This feature is a massive milestone in cash yield innovation among regulated UK brokers.
How XTB’s 4.25% Interest on GBP Works
XTB calculates the interest on idle funds in your account daily and pays it out monthly within the first five days of the month. There’s no action required on the user side, as the interest payment is credited automatically.
The interest rate applies to GBP, EUR, and USD balances with various rates. For example, a 4.25% cash yield goes for uninvested GBP balances, 2.30% for EUR balances, and 3.95% for USD balances.
New and existing clients of all account sizes are eligible to accrue this interest rate, as there are no minimum or maximum amounts required. Moreover, there’s no need to lock any funds or maintain certain positions; it’s all done transparently.
Consistent Returns With no Strings Attached
A great aspect of XTB rates is that users can earn passively while staying liquid. This gives an advantage to users who wait for market opportunities while keeping their funds in their XTB account.
To earn the interest rate, your funds must be idle and uninvested, meaning capital efficiency is maximized. For example, if you hold £10,000 idle in your account, with the current rate of 4.25%, you would earn £425 per year; If that’s $10,000 in your account, then you would earn $395 in USD.
XTB Offers the Best Cash Yields in 2026
XTB’s 4.25% AER (Annual Equivalent Rate) outperforms most competitor platforms. Here’s how it compares to some of the leading platforms:
- IG offers up to 4.25% on GBP funds, but it’s limited to £100K and requires that you have an open position or trade each month to be eligible.
- Hargreaves Lansdown offers a lower rate of 1.26% on up to £9,999.99 and 1.56% on balances over £100K, which makes it inferior to XTB’s offer.
- Freetrade Basic accounts get 1% interest up to £1,000. Plus accounts, which cost £9.99 each month, get 5% interest rate limited to £3,000.
Without any tiers or conditions, and with the highest interest rate, XTB offers the most competitive interest on free funds for UK investors.
Interest Accrues Daily and is Credited Monthly
The interest rate at XTB is credited monthly but calculated daily. Currently, the highest yield is on a GBP balance of 4.25% AER. However, it’s important to note that this rate is variable and can change. XTB publicly discloses this rate on its website, including historical rate data, so users know what to expect.
For peace of mind, XTB keeps user funds in a segregated account, meaning that if something happens to XTB’s bank account, user funds won’t be affected. Funds are also safeguarded under FCA regulatory standards.
Benefits for Every Investor
The XTB cash yield benefits a variety of users. For example, active traders get to earn interest on free funds between trades, while long-term investors can keep their accounts liquid and earn passively as they wait for the right moment to enter a trade.
On the other hand, diversified investors, who like to earn interest on their multi-currency holdings, don’t need to move cash around to earn yield on their idle balances.
Built on Trust and Regulated by the FCA
XTB is an FCA-regulated company with transparent disclosures across its website. The company employs various client fund protection measures like two-factor authentication login, encrypted connections, and money that can only be transferred to your personal account, making it hard for someone to steal your funds.
According to FCA rules, client funds are held in segregated bank accounts and are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person in case XTB faces insolvency.
As for the interest income on your idle funds, it could be taxable under HM Revenue & Customs (HMRC) rules. Seek independent advice to avoid surprises.
Turn Idle Funds into Gains with XTB
The XTB cash yield on idle funds is one of the best features for clients as it offers up to 4.25% AER on GBP balances with no strings attached. All users, existing and new, are eligible to earn this yield, and there are no minimum or maximum requirements, which are otherwise common in the industry.
Join over 1.7 million clients earning interest on their uninvested funds on XTB.
