In a significant update, XTB recently announced a new cash interest program that rewards clients with up to 4.25% AER (Annual Equivalent Rate) on their uninvested GBP balances. This industry-leading rate, which is automatically applied to all eligible accounts, sets a new standard among regulated UK brokers for idle fund yields.
With this move, XTB helps UK clients earn industry-leading interest on their trading account while keeping funds readily available for the next opportunity. Alongside XTB’s already competitive interest for USD and EUR, this is a milestone move in 2025’s brokerage landscape, aiming to blur the line between traditional bank savings and brokerage accounts.
Notably, both new and existing users are eligible to earn this high interest rate. If you don’t have an account yet, you can quickly sign up on XTB and start earning a 4.25% interest on your uninvested GBP balance.
To understand how this process works and learn about the interest payout schedule, continue reading to the end.
Earn Daily Broker Interest on Idle Funds: XTB Pays up to 4.25% AER With No Lockups
Interest accrues daily on free (or uninvested) funds and is credited to client accounts monthly, within five working days of the month’s end. XTB’s uninvested GBP interest mechanism operates seamlessly in the background, so traders earn yield without interrupting their regular trading activity.
Interest is paid in the currency of the cash balance, with competitive rates available in GBP, USD, and EUR. As of October 2025, XTB offers 4.25% AER on GBP balances, 3.95% on USD, and 2.30% on EUR.
Moreover, there are no minimum balance requirements or caps on maximum eligible funds, and there’s no need to lock up money or maintain any open positions to qualify.
This flexibility ensures every client can benefit, regardless of account size or trading activity.
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Earn a High AER on Uninvested Cash While Staying Liquid With XTB
With XTB, investors can earn interest on uninvested funds without locking cash away. That’s especially valuable for active traders who want to react quickly to market events, as well as long-term investors who prefer to stage entries.
Here’s a simple example to understand the significance of this AER: a £10,000 uninvested GBP balance would earn about £425 per year at the current 4.25% AER. This means that you can passively earn these kinds of funds while remaining liquid for your next trade.
How XTB’s 4.25% GBP Interest Rate Compares to Rivals
By offering a competitive XTB interest rate on GBP balances without any restrictions, the broker is setting a new benchmark among UK trading platforms in 2025.
Here’s how XTB’s GBP interest rates and terms stack up against some well-known competitors:
IG: IG pays a standard 4.25% AER on GBP, but only on balances up to £100,000, and only if you meet specific activity requirements like placing a trade or holding an open position each month. This means inactive accounts will not earn any interest, making it less flexible than XTB’s “always-on” approach.
Hargreaves Lansdown: Offers tiered interest rates that top out around 1.56% AER for very large cash holdings (over £100,000). Smaller balances under £10,000 earn about 1.26% or less, which is a fraction of XTB’s flat 4.25% rate.
Freetrade: Its free Basic account pays 1% interest on cash, limited to the first £1,000 only. The premium “Plus” account (costing £9.99/month) advertises a higher 5% interest rate, but this is capped at balances of up to £3,000. Earning the 5% rate requires a paid subscription and is limited in scope, unlike XTB’s broad offering, which has no tiers or fees.
Here’s How the Broker Calculates and Pays Daily Interest on the XTB GBP Account
It’s worth noting that interest is calculated daily (each day at 23:00 GMT) on the unused cash balance. These daily accruals are then summed up and paid out as a credit once per month, typically within the five days of the following month. Clients can clearly see the interest credited on their account statements, making the process easy to track.
The AER broker cash rate offered by XTB is variable, meaning it can change in line with market interest rates. XTB can adjust the rate every week if needed, but importantly, any changes are communicated transparently. XTB publishes its current rates and even provides historical interest rate data on its website for complete transparency.
Even more critically, earning interest with XTB does not compromise the safety or accessibility of client funds. All client money remains segregated in secure accounts, in accordance with FCA regulations, precisely as it would if no interest were being paid.
Who Benefits Most From XTB’s Cash Interest Program?
While we’ve briefly touched upon the benefits of XTB’s cash interest rate program, here’s a quick overview of why it’s beneficial for different types of clients:
Active traders can keep a tactical cash buffer and earn interest on free funds between orders.
Long-term investors can earn while they wait for the right price or while they transfer assets.
Diversified investors holding GBP, USD, and EUR balances benefit from multi-currency yields without needing to transfer funds. In all cases, the XTB cash yield significantly enhances cash productivity while preserving market agility.
XTB Ensures Fund Security Under FCA Regulations
As a fully FCA-regulated broker, XTB operates under strict oversight to ensure client funds are handled with utmost security and transparency. All client money, including uninvested cash that earns interest, is held in segregated accounts at regulated financial institutions.
This segregation ensures that your cash is kept separate from XTB’s own assets, and it remains protected even as it accrues interest on your behalf. Additionally, XTB’s authorization by the FCA (FRN 522157) requires compliance with capital requirements and regular reporting, so clients can trust that the interest program is run in line with regulatory standards.
Adding to the list of compliance-friendly moves, the company also openly reminds clients that interest income is subject to taxation just like bank interest. UK investors have a Personal Savings Allowance (an amount of interest that’s tax-free), but any interest beyond that threshold may incur income tax. XTB encourages clients to be aware of their tax obligations and provides a link to HMRC for guidance and support.
Conclusion: Join Millions Earning Interest on Uninvested Funds
With its new cash interest program, XTB is redefining the value proposition for brokerage clients. By offering 4.25% AER on GBP balances with no conditional terms, XTB positions itself among the best broker interest rates UK traders can currently access.
This ensures that every pound in your account is working to its fullest potential. In fact, all XTB clients (new or existing) are immediately eligible to earn these rates on their uninvested funds.
You can sign up today to join the millions of investors who are already enjoying interest on their uninvested funds.
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