Trade Republic paying 4% on deposits up to €50,000
- Thread starter Brendan Burgess
- Start date
Yes. And the WireCard scandal should tell us that the German regulator is just as capable of being asleep at the wheel as our own.
Note I'm not suggesting that there are underlying issues with Trade Republic; just that the risk profile of depositing through them is different than with a bank.
Note I'm not suggesting that there are underlying issues with Trade Republic; just that the risk profile of depositing through them is different than with a bank.
Look ahead
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100% agree
Raisin looks like the best option for deposits at the moment, but would still be interested to see if anyone has set up an account and used Trade republic, for either stocks or deposits, and what their experience was like ?
I opened an account via their app. I did the opening process during business hours and the verification process was quick. Transfers to Trade Republic have taken less than a day. App is basic but fine.
I opened an account with Trade Republic and they asked for an Irish Tax ID which I assume is my PPS number. I tried to enter the PPS number on the App but it does not allow you to enter letters, digits only. @Lightning did you have a similar problem?
No, I did not have a similar problem. Did you try inputting your PPS via the desktop website?
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Bingo, problem sorted. I had not logged in from the desktop before. Thanks.
I was just in the process of setting up a Trade Republic account and at the end stage, I was reading through the documents when I came across this in the Deposit Guarantee Scheme information sheet:
"In the name of our partner Citibank Europe plc (CEP) we want to point out the following:
Trade Republic has opened an account as a depositor with Citibank Europe plc, Germany Branch. CEP is a member of the Deposit Guarantee Scheme of Ireland (DGS). The DGS protects claims of depositors up to €100,000. As Trade Republic has notified CEP that CEP is holding the funds placed in the account on behalf of Trade Republic’s underlying clients, CEP will mark the account as a beneficiary account on their records. Should the situation arise, it would be for the Central Bank of Ireland to investigate which underlying beneficiaries are eligible for protection.“
Does anyone know what this means exactly? I've highlighted the bits that concern me in bold.
Also when I clicked on the link for the Escrow account information, it goes to a page that says "Was this article helpful?" with Yes/No options - even though no article appears on the page...
"In the name of our partner Citibank Europe plc (CEP) we want to point out the following:
Trade Republic has opened an account as a depositor with Citibank Europe plc, Germany Branch. CEP is a member of the Deposit Guarantee Scheme of Ireland (DGS). The DGS protects claims of depositors up to €100,000. As Trade Republic has notified CEP that CEP is holding the funds placed in the account on behalf of Trade Republic’s underlying clients, CEP will mark the account as a beneficiary account on their records. Should the situation arise, it would be for the Central Bank of Ireland to investigate which underlying beneficiaries are eligible for protection.“
Does anyone know what this means exactly? I've highlighted the bits that concern me in bold.
Also when I clicked on the link for the Escrow account information, it goes to a page that says "Was this article helpful?" with Yes/No options - even though no article appears on the page...
Sounds like there's a single collective deposit account with Citi ...
with Trade Republic as the depositor, but investors as the beneficial owners.
That's certainly less clear cut than their FAQ, which categorically states
I could easily see the Central Bank paying out €100,000 in total to Trade Republic, or dividing it among all the beneficaries.
I'm not even sure about the €100k in that instance. According to the link below investment firms are excluded from the eligible depositors.
https://www.depositguarantee.ie/en/what-we-cover/protected-depositors
RedOnion's early post Sets out how it should be set up to minimise potential issues
Guidance on the Deposit Guarantee Scheme
Following a recent query regarding the extent to which solicitors’ client accounts are covered by the Deposit Guarantee Scheme (DGS), brief guidance on the operation of the scheme is set out below.
www.lawsociety.ie
Protected Depositors
The Deposit Guarantee Scheme (DGS) protects depositors in the event of a bank, building society or credit union authorised by the Central Bank of Ireland being unable to repay deposits.
www.depositguarantee.ie
Nothing announced so far. Will be interesting to see which backs pass on the ECB rate increase to depositors.
Looking for some clarification on any additional requirements that might arise from opening a Trade Republic account for the purposes of achieving the 2% interest rate.
My two concerns are:
1) DIRT isn't automatic
- i.e. One would need to submit a return to revenue on the DIRT gains.
- I'm assuming this can be completed using a Form12 PAYE tax return?
2) Does opening an account trigger the need to file a Form11 tax return in that year.
Specifically, revenue says:
www.revenue.ie
Is a Trade Republic account considered as a "Foreign Bank Account" under the terms of this clause?
My two concerns are:
1) DIRT isn't automatic
- i.e. One would need to submit a return to revenue on the DIRT gains.
- I'm assuming this can be completed using a Form12 PAYE tax return?
2) Does opening an account trigger the need to file a Form11 tax return in that year.
Specifically, revenue says:
Opening a foreign bank account
You must file a Form 11 tax return for any year that you open a foreign bank account.
www.revenue.ie
Opening a foreign bank account
Use Revenue Online Service (ROS) to file a Form 11 tax return for any year that you open a foreign bank account. Your return must give details of:- the name and address of the financial institution that your account is located in
- the date you opened the account
- the amount of money you lodged to open the account
- any person or company in Ireland that helped you in opening the account.
Is a Trade Republic account considered as a "Foreign Bank Account" under the terms of this clause?
Yes. Covered in this and/or other threads about similar online banking offers.
Not in itself. If you earn enough interest (something like €5K or more?) to become a (self) assessable person then you will be subject to Form 11 self assessment.
Interest earned and the associated rate is displayed at the start of each month when you receive your interest payment.