Robinhood Europe Paying 5%

[outofmymind]

Got some free crypto lol,

is the amount that you get free dependent on how much money you deposit or does it seem to be a fixed amount? Thanks

 

[Corola]

this offer will obviously end at some stage and should be treated as a promo.

The (broken) email also references a fee of 0.5% once the promo period ends:

*After the promotion ends on 1 Jan., 0001, Robinhood will charge a 0.5% fee on the annual percentage yield.

 

[Lightning]

Yeah. And 0.50% is a high broker fee for a MMF cash sweep product.

Lightyear use the exact same MMF ( LU2599140782 ) and their broker fee is just 0.10%.

Meaning, the net yield on LU2599140782 is 2.13% after JP Morgan fund fees and after Lightyear broker fees. But the net yield on LU2599140782 is 1.73% after JP Morgan fund fees and after Robinhood fees if the promo bonus was to expire.

Revolut charges a similar high 0.50% on their MMF cash sweep product (on their standard plan) and Plum even more. Pointless to pay high broker fees (without promos like this) when you can invest directly in a MMF such as XEON and pay no broker fee.

 

[Banquo]

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

This bit is curious - I wonder is the bonus tax free? I wouldn't have thought it tracks at 38%. Could it be argued that's it's subject to gift tax

 

[irishfinanceguy]

@outofmymind it doesn't appear to be related to how much you transfer, did everyone get the free crypto lol? I wonder the range also
I reckon this wont last long, maybe 3 months at best and we will all be transfering the money out.

Im curious, is anyone putting in over the 22k safer limit?

 

[Lightning]

This bit is curious - I wonder is the bonus tax free?

I am not a tax expert but I would not think it is tax free.

 

[Lightning]

is anyone putting in over the 22k safer limit?

I personally think having over 22k in a JP Morgan MMF is still low risk even if you are above the investor protection level.

The KID investor document for this fund ( https://wl.fundsquare.net/serv/down...782&docTypeCode=KIDD&docLang=EN&docCountry=LU ) gives this JP Morgan MMF a risk rating of 1 out of 7 (the lowest).

 

[irishfinanceguy]

@Lightning my bad for quoting It just doesn't seem to let me reply (maybe my account has been restricted)
Im inclined to agree, low risk equals low returns to an extent
Btw do you ever invest? you're the deposit don but I'm sure myself and others would like to know your views on things like investments or is that just not your area of interest?

 

[ClubMan]

my bad for quoting It just doesn't seem to let me reply (maybe my account has been restricted)

How to reply to or quote a post

To reply to a post, you just start typing in box below the post and then press Post Reply.

www.askaboutmoney.com

 

[irishfinanceguy]

wow @ClubMan never said I was the sharpest thanks!
wait it does not seem to work for me oh well, quoting it is

 

[ClubMan]

it does not seem to work for me

There's no reason for it not to work for you.

 

[Banquo]

I personally think having over 22k in a JP Morgan MMF is still low risk even if you are above the investor protection level.

Is the 22k protection /insurance on JP Morgans performance or Robinhood, do you know?

 

[Lightning]

The 22k insurance is investor protection. The CCPC explanation of how investor protection works, for the equivalent Irish scheme, is here https://www.ccpc.ie/manage-your-money/saving-and-investments/investments/ics-protection

It does not protect you from a decline in the value of an investment. It protects you from fraud at the broker level.

 

[Fortune]

the bank

Which bank?

 

[faketales]

I am not sure what it says about the Irish tax system when its not clear what tax will need to be paid.

I wonder how long the rate will last. Limiting myself to 22k using the current difference with TR I see it worth €550 a year. Worth the admin. in my opinion. Less so if its a few months.

 

[Banquo]

It protects you from fraud at the broker level.

So in this case specifically Robinhood

 

[Lightning]

Yeah

 

[faketales]

I am seeing a live moving “portfolio” that is approx €50 above my deposit but fluctuating.

Is this my MMF plus some free crypto? I can’t see what it is.

 

[Lightning]

Your MMF investment is in the "yield on euros" section when you scroll down on the main tab. There is around a 1 day lag with the money moving into the MMF.

The 50 EUR is probably crypto. Scroll down to the Crypto section in the main tab and click into each crypto asset and you should see what you hold.

 

[faketales]

The 50 EUR is probably crypto. Scroll down to the Crypto section in the main tab and click into each crypto asset and you should see what you hold.

Thanks. I now own 5 different types of crypto. Hopefully they make a loss so I don’t have to declare anything.

I don’t suppose I can buy a pizza with Hyperliquid coin?