When you create an investment account with us, we will automatically open a bank account (Cash Account) in your name with flatexDEGIRO Bank. All of your uninvested money will then be held in a segregated personal bank account with a personal IBAN.
One important consequence of this setup is that up to €100.000 of your uninvested money will be protected by the German Deposit Guarantee Scheme (Entschädigungseinrichtung deutscher Banken). For more information on this scheme, visit this page.
Your new Cash Account will be directly connected to your existing DEGIRO investment account. It is not possible to use this Cash Account for other banking matters, and you will not receive a physical card or be able to set up this account to payment services such as Apple Pay. You can only use it to hold money to finance all the activities on your investment account.
There are no costs associated with holding the Cash Accounts or depositing/withdrawing money. Unfortunately, cash accounts - like all other bank accounts that depend on the interest rates set by the European Central Bank - have a disadvantage. Namely, the possibility of a negative interest rate.
However, starting August 1st, 2022, there is no negative interest rate on Cash Accounts denominated in Euro. Should the interest rate decrease again in the future, you can find all information about the compensation for negative interest here.
Please also see this document with an overview of the prices and services of the Cash Account. There are no entry, exit or other costs associated with the Cash Accounts.