Goodbye overnight deposit accounts.

Hello CashPlus.

The interest rate of CashPlus is based on the interest rate policy of the European Central Bank. Currently, the interest rate is 3.90% (as of September 20, 2023). The current interest rate can be found at the Deutsche Bundesbank HERE. Please note that you can add an additional 0.085% to the interest rate shown, because CashPlus is adjusted for this additional yield. This brings the total interest rate to 3.98% as we show.

By providing interest directly through the capital market, we don’t have to go through costly banks. This allows CashPlus to pay out interest rates that are significantly higher than the average.

Banks do not provide their services free of charge and would like to keep as high a share as possible of the interest received from the European Central Bank for themselves because they can book this as profit (in banking, the keyword is “maturity transformation”). Currently, many banks are trying to pass on higher interest rates for a given term with loss-leader offers so they can see customer growth. UnitPlus turns this way of thinking around and does not keep any interest for itself. CashPlus uses an capital market portfolio to track the performance of a deposit bearing interest at the short-term euro rate (€STR) + 0.085%. The European Central Bank calculates the interest rate on the €STR on a daily basis, which is currently 3.90% per year (as of September 20, 2023). For banks in the European Monetary Union, this interest rate has an important meaning and the German Bundesbank also publishes the value daily on its website. The abbreviation €STR stands for “Euro Short-Term Rate” and is the one-day interbank interest rate for the Eurozone.

Although the interest rate on CashPlus may fluctuate, sometimes more and sometimes less, there is no risk of loss of value due to capital market fluctuations as with shares or bonds.

The interest rate is correlated directly on the central bank policy of the European Central Bank. This means that if interest rates continue to rise, CashPlus will also earn more interest. Since we announce every interest rate increase and decrease by email and via the UnitPlus app, you are always informed. This way, should we ever enter a negative interest rate environment again, you can decide for yourself whether CashPlus is still the right product for you. In that case, it would generate a negative return, just like bank accounts probably do.

Otherwise, a loss can only occur if Deutsche Bank becomes insolvent in the case of CashPlus, which is understood as a so-called counterparty risk. In addition, CashPlus has collateral consisting of government bonds of stable value and very liquid. Therefore, a default of Deutsche Bank would have to occur and at the same time the states of the issued government bonds (especially France and England) would have to get into payment difficulties for a loss to occur. In addition, CashPlus in your UnitPlus account enjoys the status of special assets, so it is also always protected from insolvency of ourselves or our partner bank.

To sum it up, CashPlus is developed under the highest security standards, so you can sit back and relax.