Robinhood Europe Paying 5%

[Lightning]

The big US broker Robinhood recently launched in Europe with a limited crypto and tokens product but will expand their offer from there.

Robinhood Europe are paying 5% on euro interest balances via a JP Morgan MMF. Interest is paid monthly.

Robinhood Europe makes a "contribution" on top of the JP Morgan MMF monthly interest/distribution to bring the return up to 5%.

The JP Morgan MMF has a constant NAV of 1.

I guess that the daily interest/distribution, via the MMF, is subject to the exit tax rate of 38% but no 8 year deemed disposal because there will be no unrealised gain.

Is the "contribution" also subject to 38% tax?

22k investor protection applies.

This offer has no expiry date but is likely a promo in all but name. Robinhood Europe is using this offer and referrals to draw in customers.

Some limited detail is here but most detail is inside the app.

Requires opt in.

 

[whiz]

Where do you see 5%?

 

[ClubMan]

On the app?

Some limited detail is here but most detail is inside the app.

 

[irishfinanceguy]

Amazing if this is the case!

 

[ClubMan]

Amazing if this is the case!

Only €22K deposit protection though.

Best Buy - Instant Access & Notice Deposit Products

Euro Lump Sum Instant Access & Notice Deposit Products Available for Irish Residents - 10 Categories: Last Updated: 29 August 2026 Current ECB Deposit Rate: 2.25% 1. Lump Sum Instant Access & Notice Savings Products: Excluding Products with Fees Excluding Promotional Rates Excluding Pure MMF...

www.askaboutmoney.com

 

[irishfinanceguy]

@ClubMan who cares, 5% is 5% all you guys do such a great job updating this website honestly

Hope I can be more helpful myself as I learn more

 

[ClubMan]

@ClubMan who cares

I wouldn't put more on deposit with an individual institution than is covered by the relevant deposit guarantee scheme.

you guys do such a great job updating this website honestly

The savings best buys lists are maintained by @Lightning more or less single handedly.

Best Buy - Savings Best Buys

Savings Best Buys: There are 3 savings best buy threads on AskAboutMoney that are updated frequently. Instant Access and Notice Accounts - Lump sum variable rate savings. Fixed Term Deposits - Fixed Lump Sum Term Deposits from a few months to a few years. Regular Savings - Smaller sum...

www.askaboutmoney.com

 

[irishfinanceguy]

@ClubMan I agree, but its nice to see such a competitive rate despite that limit. And yes @Lightning is the deposit don, but posters like you contribute a lot also

 

[charlie007]

I wouldn't put more on deposit with an individual institution than is covered by the relevant deposit guarantee scheme.

I used to always think this, but now I'm not sure.
There was a discussion on here about whether many depositors had actually lost some of there deposits over the guarantee figure.
If I recall right only 1 western bank had defaulted on depositors in the last 50 years and this bank had now repaid in full.
I can't find the thread but I'm sure you @ClubMan will be able to!

 

[irishfinanceguy]

@charlie007 very interesting, tbf that 5% is tempting, the americans have arrived it seems, throwing money away

 

[ClubMan]

I can't find the thread but I'm sure you @ClubMan will be able to!

This one?

Irish Times - "Is it time to increase protection on savings?"

https://www.irishtimes.com/your-money/2025/05/13/is-it-time-to-increase-protection-on-savings/ Paywalled, but some of the gist... But the UK is considering strengthening that protection. Under proposals put forward by the Bank of England, savers could have deposits of as much as £110,000...

www.askaboutmoney.com

 

[charlie007]

This one?

That's the one!
Read from post 87 on.

Irish Times - "Is it time to increase protection on savings?"

It's bonkers to expect the taxpayer to guarantee anyone's investment Try going out there and telling 95% of the population that their bank deposit is an investment. You'll have a hard time convincing them

www.askaboutmoney.com

 

[Lightning]

Where do you see 5%?

I signed up and I'm earning 5%.

The detail are in the app. They email the details to you too after you opt in. See below.

 

[faketales]

Is the 5% guaranteed to be paid?

My understanding is the 22k is just a protection on Robinhood being unable to pay.

 

[irishfinanceguy]

Just setting up app, awaiting approval, no sign of this mmf.so far but probably don't have full access

 

[Lightning]

My understanding is the 22k is just a protection on Robinhood being unable to pay.

The 22k is investor protection against Robinhood being unable to pay due to fraud etc.

Your money is held in the JP Morgan fund which is obviously segregated from Robinhood.

 

[Lightning]

Just setting up app, awaiting approval, no sign of this mmf.so far but probably don't have full access

You need full access. Approval of the docs was quick for me anyway.

 

[faketales]

Your money is held in the JP Morgan fund which is obviously segregated from Robinhood.

How safe / guaranteed is the deposit or the return.

 

[angryInch]

Just signed up, seems ok

 

[Freelance]

I signed up and I'm earning 5%.

The 5% includes an extra 2.36% limited time bonus. So the underlying rate is 2.64% approx. Do they say what the time limit on the extra bonus is ?