Neobank Rate War: Scalable Launches Fixed Deposits Paying Up to 3.25 Percent in Austria
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The battle for Austrian savers’ money is entering its next round: Scalable Capital is now offering fixed-term deposits paying up to 3.25 percent a year. Only in October did the Munich-based neobroker open its own bank branch in Vienna and start withholding Austrian capital gains tax automatically. Now it is taking on Trade Republic and Revolut in savings. Who pays the most, though, depends heavily on how long you want to lock up your money and whether you are a new customer.
Scalable’s New Offer
The Scalable fixed deposit comes with three terms:
- 6 months: 2.75 percent a year
- 12 months: 3.00 percent a year
- 24 months: 3.25 percent a year
Customers can invest from €1 with no upper limit and hold up to five fixed-deposit accounts at once. According to Scalable, money is moved in real time from the brokerage or savings account and starts earning interest immediately, and the rate does not change during the term. There are no account or transaction fees.
Scalable’s instant-access savings account continues to pay 2.60 percent, for new and existing customers, with no cap and monthly payouts. That rate is only partly fixed, however: It consists of the European Central Bank’s deposit rate minus one percentage point, plus a bonus of 1.1 percentage points. The bonus is guaranteed only until the next E.C.B. meeting and is voluntary and subject to change after that.
Scalable, Trade Republic and Revolut Compared
| Scalable Capital | Trade Republic | Revolut | |
|---|---|---|---|
| Interest on cash | 2.60% (variable, no cap) | 3.00% for new customers up to €50,000, otherwise 2.50% | 1.00% to 2.00% depending on plan |
| Fixed deposit | 2.75% (6 months), 3.00% (12 months), 3.25% (24 months) | none | none |
| Interest payout | monthly | monthly | daily |
| Austrian tax withheld automatically | yes | yes | no, planned from 2027 |
| Deposit insurance | €100,000, up to €500,000 with PRIME+ | €100,000 per partner bank | €100,000 (Lithuania) |
On instant-access savings, Trade Republic comes out ahead, at least for new customers. The Berlin-based neobroker currently pays them 3.00 percent on balances up to €50,000 in Austria, until further notice. Trade Republic already used that rate in the spring, along with Brad Pitt as a pitchman, to win Austrian customers. Existing customers get 2.50 percent and can only secure the higher rate through referrals, for three months per new customer referred. Trade Republic does not offer a classic fixed deposit.
Revolut lags well behind on interest. The neobank pays 1.00 percent on its Standard plan, 1.25 percent on Premium and 1.50 percent on Metal, according to the comparison site sparzinsen.at. The 2.00 percent rate is available only on its most expensive plan, Ultra. In return, interest is credited daily. The bigger drawback for Austrians: Revolut does not yet withhold Austrian tax, so customers have to declare interest in their tax returns themselves. That is set to change only in 2027, with its Austrian branch and local IBANs.
Lock In or Stay Flexible?
Whether a fixed deposit pays off also depends on the European Central Bank. It raised its deposit rate by a quarter point each in June and September to 2.50 percent and left it unchanged at the end of October. The next meeting is in mid-December, and many economists expect another increase because of high inflation. If rates rise, variable savings rates are likely to follow, while a fixed-deposit rate stays the same for the full term. If they fall, the opposite applies.
A Real Loss, After All
For all the competition over returns, one problem remains: None of these offers keeps pace with inflation. Austrian inflation was 3.6 percent in October, according to a flash estimate from Statistics Austria. After the 25 percent capital gains tax, Scalable’s top fixed-deposit rate of 3.25 percent leaves only about 2.44 percent, and its 2.60 percent savings rate about 1.95 percent. In real terms, savers are currently losing purchasing power even with the best offer.
