Lightyear Paying 3.25% Instant Access, No Fees & 20k Protection

L

Lightning

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The online broker Lightyear is now paying 1.75% on Euro deposits:
- Instant access.
- No fees.
- Interest paid monthly.
- Ireland residents now allowed open accounts.
- Transparent rate calculation - ECB deposit rate minus 0.75%.
- No deposit protection scheme but 20k protected via investor protection scheme. More here.
- Based on London and Estonia.
- Article on the service here.
- Investors include Richard Branson and other high profile investors.
- Trust Pilot reviews are here.
- FCA approved.

I found the application process straight forward.

Perhaps too much risk for a deposit over 20k but it might suit some for deposits below 20k.
 
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Yeah, I opened an account.

There was a post in another thread from someone else who opened an account too.
 
Lightning said:
Worth noting that the Lightyear euro deposit rate will probably be increased to 2.25% when the ECB rate increases on 22 March 2023.
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Has anyone heard if/when Lightyear will be increasing their rate from 1.75% to 2.25%?
 
Got my first interest payment into my Lightyear account this morning. Prompt and correct.

Getting paid interest monthly on the first calendar day of each month (like Trade Republic and Bunq also do) is such an improvement from the Irish banks who often only pay annually.
 
  • Deposit Protection: NB: €20,000 via Estonian Investor Protection Scheme.
Silly question. What's the NB stands for here? Trying to understand why some links on InstanceAccess and Notice Deposit Accounts have this NB and some not and what are the implications
 
Simply highlighting the fact that the protection level is different to normal deposit protection which is normally 100k but 20k in this instance.
 
This was amazingly simple to set up, and the frictionless way I could transfer funds from Revolut was very slick. Great app.
 
Noodler said:
This was amazingly simple to set up, and the frictionless way I could transfer funds from Revolut was very slick. Great app.
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Yeah, simple set up and great user interface.

dublinaam said:
Anyone know why there is a difference and 100k isn't covered?
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Light-year are a broker. Brokers are normally (but not in all cases) covered by Investor Protection and not Deposit Protection. Investor Protection in most EU countries is 20k. Deposit Protection in all EU countries is 100k.
 
Lightning said:
Got my first interest payment into my Lightyear account this morning. Prompt and correct.

Getting paid interest monthly on the first calendar day of each month (like Trade Republic and Bunq also do) is such an improvement from the Irish banks who often only pay annually.
Click to expand...
Lightyesr inerest rate looks great compared to what is offered by Irish banks for on demand deposit.

Is it oj to use them as a deposit account only or do you have to do a min no of trades in a period of time?
 
Luternau said:
Lightyesr inerest rate looks great compared to what is offered by Irish banks for on demand deposit.

Is it oj to use them as a deposit account only or do you have to do a min no of trades in a period of time?
Click to expand...

No requirement to do a minimum number of trades.

You can use it as a deposit account only..
 
The Lightyear euro deposit rate, which according to the app is tracked to the ECB deposit rate minus 0.75%, should increase to 2.50% on 10 May 2023 when the ECB rate increase occurs.

But probably won't know for certain that Lightyear have passed on the increase until 10 May.
 
Slightly off topic, but I have a nominal amount of USD in an Etrade account from sold RSU's.

1. What would be the cheapest way to transfer that USD to Lightyear's USD deposit to avail of their 4.25% interest rate? From Etrade to Revolut Metal to Lightyear perhaps? I currently have a Metal account.

2. Do I declare to Revenue via Form 11 next year the interest earned on the Lightyear USD deposit, the same way I would for a Lightyear EUR deposit or is there anything else to do?

I'm aware of the FX risk of holding USD on deposit.
 
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