Lightyear Paying 1.25% Instant Access, No Fees & 20k Protection

Just received the below email from Lightyear:

Lightyear increasing to 4.00% for those who refer - at least until the ECB change rates.

Hi gort,

The European Central Bank held the deposit rate at 4% today. Meanwhile, the average rate on overnight (instant access) bank accounts in Ireland is still just 0.13% ... So, we’re launching a new reward scheme to help you and your friends really make the most of today’s rate hold decision, before Central Bank rates (likely) start dropping in June.

From now until the next ECB rate decision in 6 weeks, when you invite a friend to Lightyear, we'll waive the 0.75% Lightyear fee that normally applies to your EUR balance for 30 days, so you’ll get the full Central Bank rate.

How to get 4% interest on your €s for 30 days

  • Invite a friend, and as soon as they join and fund their account, you’ll both enjoy 30 days of Central Bank interest - currently 4% - on your uninvested euros.
  • The 30 day window restarts with every successful referral you make.
  • The higher rate applies to your whole EUR balance, with no minimum or maximum limits!

    We’ll run this offer until the next ECB rate decision, in 6 weeks time. So get referring now!
Click to expand...
 
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I guess Lightyear will decrease their EUR rate to 3.00% on 12 June 2024 (which is the effective date of the ECB rate change) if they maintain the same margin.
 
I just noticed that Lightyear have just introduced "Savings Vaults" in multiple EU countries. But not Ireland sadly.

It is a blackrock MMF bubble wrapped product.

3.79% AER (after fees) on EUR with instant access.

Details here: https://lightyear.com/eu/vaults

Pity that it is not on offer in Ireland. I asked Lightyear last year why they did not offer MMF products in Ireland (Lightyear have offered other Blackrock MMF products for a while) and I was told that it was due to the tax situation in Ireland. Perhaps that is the reason for this too but the awful deemed disposal tax situation here has not stopped other providers.
 
www.irishtimes.com

Deposits war heats up: Irish savers starting to see much higher rates offered

Looking outside the traditional banks will open the door to much more competitive interest on your savings
www.irishtimes.com www.irishtimes.com

Irish Times also imply that the reason that Lightyear are not offering the Blackrock MMF product in Ireland is our 41% deemed disposal tax.

Lightyear rate confirmed to be changing to 3%. The ECB rate becomes effective tomorrow.
 
Got an email from Lightyear today saying that EUR rates are going to be 0.75% from 8th May

Somewhat dressed up in a mail about GBP rate cut. Current rate is 3.5% but is being cut to 2.5% and USD to 3%.

Seems like lightyear are cutting rates substantially now.
 
I received this via email:

===
Last Thursday, the 8th of May, we sent an email notifying you about an interest rate change on your uninvested GBP balance, due to a cut in the Bank of England's base rate.

Unfortunately, due to a technical error, the rates shared in the email were incorrect. The actual interest rates applicable to uninvested cash held at this time in your multi-currency account are:

3.50% APR on GBP
1.25% APR on EUR
3.50% APR on USD

===
 
The email was sent on the back of a query from me!

I noticed last week that the app was saying 1.25% but the email said 0.75% and the website was saying 0.75%.

Lightyear have different rates for Ireland than other countries. The rate is 0.75% outside of Ireland and 1.25% for Ireland.

The reason seems to be that other countries have access to the money market rates but these rates are not available in Ireland because of the funds deemed disposal tax rates in Ireland, so Lightyear only offer uninvested cash interest rates in Ireland.
 
I definitely saw the app saying 0.75% at one point. Prompted me to check for an email, which had said the same. App now shows 1.25% again.


Somebody on their side must have mixed up the rate (1.25%) and the margin they take off it (0.75%).
But for me, i've taken my money out when it said 0.75%....as I get better rates elsewhere.
 
daheff said:
Somebody on their side must have mixed up the rate (1.25%) and the margin they take off it (0.75%).
Click to expand...

The rate seems to have declined to 0.75% for non-Irish customers. The mix up was with the email where they sent the GBP email (with the new EUR rates) to Irish customers. Ireland has different rates because they won't offer their higher paying money market rates here due to the tax situation.
 
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