diff --git a/packages/loot-core/src/server/main.ts b/packages/loot-core/src/server/main.ts
index d24ca17befe..9abfd5cd964 100644
--- a/packages/loot-core/src/server/main.ts
+++ b/packages/loot-core/src/server/main.ts
@@ -280,7 +280,7 @@ handlers['category-create'] = mutator(async function ({
     }
 
     return db.insertCategory({
-      name,
+      name: name.trim(),
       cat_group: groupId,
       is_income: isIncome ? 1 : 0,
       hidden: hidden ? 1 : 0,
@@ -291,7 +291,10 @@ handlers['category-create'] = mutator(async function ({
 handlers['category-update'] = mutator(async function (category) {
   return withUndo(async () => {
     try {
-      await db.updateCategory(category);
+      await db.updateCategory({
+        ...category,
+        name: category.name.trim(),
+      });
     } catch (e) {
       if (e.message.toLowerCase().includes('unique constraint')) {
         return { error: { type: 'category-exists' } };
diff --git a/upcoming-release-notes/3495.md b/upcoming-release-notes/3495.md
new file mode 100644
index 00000000000..b4ddc5cd82d
--- /dev/null
+++ b/upcoming-release-notes/3495.md
@@ -0,0 +1,6 @@
+---
+category: Bugfix
+authors: [junyuanz1]
+---
+
+Removes whitespace from both ends of the category name