I recently noticed that Trading 212 deducts tax on the daily interest earned in my Tagesgeldkonto. I’m wondering if this is the standard practice across all brokers that offer daily interest, like Trade Republic and Scalable Capital.

Do these brokers also automatically deduct tax on the daily interest, or is it handled differently? Would appreciate insights from anyone using these platforms!

by WorldViewfinder

2 comments

  1. This is the normal deduction of capital gains tax and solidarity surcharge. This is deducted from all income without a deductible amount (Freibetrag).

  2. Any german broker or bank is legally required to deduct capital gains tax on any capital gains like interest or dividends.

    You can avoid that by making a Freistellungsauftrag with the bank or broker which takes preemptive advantage of the 1.000 € deduction that one will be credited if they file a tax return.

    You can assign multiple freistellungsaufträge across all of your banks but only to a total sum of 1.000 €.

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