$The Quick Answer
At Freedom24, the balance in euros or dollars that you haven’t invested yet isn’t left idle without generating returns: it automatically enters the D-Account, an interest-bearing account with daily interest. The rate is variable — it closely follows market reference rates (EURIBOR for euros, SOFR for dollars) — so it changes over time and you should always check the current rate within your account or on the official website before deciding. This interest counts as income and is also declared in the IRS, on Annex J.
One of the most common questions from those deciding where to open an account to invest is: “if the money just sits there while I decide what to buy, am I losing profitability?” In most Portuguese banks, the answer is yes — the balance in a checking account yields next to nothing. At Freedom24, the mechanism is different, and it’s worth understanding how it works before comparing it with other options.
What is the D-Account and How It Works
The D-Account is Freedom24’s interest-bearing account for uninvested balances. You don’t need to manually activate it or move money to a separate product: as soon as you have euros or dollars in your investment account without being allocated to a position, that balance will earn interest automatically, calculated and accumulated daily. There is a minimum deposit to start earning interest (historically around 150 EUR/USD, but check the current amount in your account as conditions may change).
Why the Rate is Variable — and What Causes It to Change
Unlike a traditional fixed-term deposit, the D-Account rate is not fixed: it’s indexed to interbank market reference rates — EURIBOR for the balance in euros and SOFR for the balance in dollars. When central banks (ECB and Fed) raise or lower their benchmark rates, EURIBOR and SOFR follow that trend with a delay, and the D-Account’s interest reflects that. This means two practical things: (1) any percentage you read in an article, including this one, might no longer be accurate when you read it; (2) the only reliable place to know today’s exact rate is your own Freedom24 account or the product’s official page, never an outdated comparison article.
Transparency note: We consulted several independent sources to understand the magnitude of these rates. Comparison sites updated in 2026 have reported values around 3% for the euro balance and near 5% for the dollar balance — but given they are variable rates and these sources are third parties (not directly from Freedom24), treat this as an approximate reference, not the value you’ll find today in your account.
There is Also a Fixed-Term Option
For those who want to know exactly what they will earn without depending on EURIBOR/SOFR fluctuations, Freedom24 also offers a Long-Term Savings Plan — a fixed-term product (typically 3, 6, or 12 months) with an agreed-upon enhanced rate at the time of subscription, generally with a higher minimum deposit than a regular D-Account. Since exact conditions (terms, bonuses, minimums) frequently change, always confirm the current values in your account area before subscribing.
How This Compares to Keeping Money in a Portuguese Bank
In general, retail banks in Portugal do not offer significant interest on checking account balances — or they provide a negligible rate, close to zero. Even traditional savings accounts often fall short of the market rates that EURIBOR/SOFR reflect. This doesn’t mean the D-Account replaces an emergency fund (that should be accessible immediately and without exposure to market fluctuations), but it does mean that for money you’ve already earmarked for investment and which is temporarily unallocated — for example, while waiting for the right buying moment — leaving it in the D-Account is usually better than leaving it idle in a traditional checking account.
And the IRS? This Interest is Declared Too
Yes. Interest from the D-Account is considered investment income (category E) and is declared in Annex J of the IRS, just like capital gains from stocks and ETFs sold at Freedom24 — but as a separate line, with its own flat tax rate of 28% (or option for aggregation). It’s worthwhile to keep your annual interest statement for easier filing.
Security of Money Idle in the Account
We’ve detailed the regulation and capital protection aspects of Freedom24 in the article Is Freedom24 Secure? — in summary, it’s regulated by CySEC (Cyprus) under MiFID II, with protection up to €20,000 by the Cyprus Investors Compensation Fund in case of brokerage insolvency (does not cover market losses). This protection also applies to uninvested balances, including those in the D-Account.
This article is informative and does not substitute personalized fiscal or financial advice. Interest rates change and should always be verified at the official source before making any decision.
Open an Account at Freedom24 →
Educational content, not constituting tax or investment advice. Always check the current rates in your account or on Freedom24’s official site. Investing involves risk of capital loss.
Frequently asked questions about interest at Freedom24
Perguntas frequentes
Yes — it automatically goes into the D-Account, an interest-bearing account with daily interest.
It is variable and closely tracks market reference rates: EURIBOR for euro balances, SOFR for dollar balances.
Yes — it counts as income and is declared on the IRS return, in Annex J.
Usually not — at most Portuguese banks, current account balances earn virtually no interest.
Educational content, not financial advice. Interest rates are variable — always confirm the current value inside your account or on Freedom24’s official website.