Trade Republic paying 4% on deposits up to €50,000

Also having problems transferring to TR. Three transfers failed/returned. Admittedly the first was due to a minor error on my part. No idea of the cause of the other failures. Awaiting a reply from them on what might be the cause of the most recent retry. Failing a resolution this time, I will have to admit failure and try somewhere else.
 
I've found my transfer times from TR to my German current account are much faster than they used to be. Sent a transfer last week and it showed up in my current account the same day (no, not the same bank). Transfer originated with "Trade Republic Bank", not Chase as used to be the case.
 
How long is TR likely to keep the 4% offer...with interest rates likely to start lowering this year I can see the rate reducing in line with this.

I'm trying to weigh up what's better for a lump sum I have (for 1 year deposit):
TR with 4% possibly reducing during the year, or
Younited at 3.3% guaranteed fixed rate...
 
No one knows.

Because tr is on demand there would be no problem using it even in the short term and move later if there is a better opportunity.

That's if you don't mind the hassle
 

TF Bank via Raisin offer 3.65% currently on investments of €5-€85K
 
Arriving into this a bit late.

Was the 8% a January special for new joiners?

Is TR 4% the best rate we can secure as Irish EU citizens?
 
Arriving into this a bit late.

Was the 8% a January special for new joiners?

Is TR 4% the best rate we can secure as Irish EU citizens?
Getting that rate was a bit of a tall order, I think it was open to everyone but someone had to use your reference code in December as far as I remember.


This should cover the best rates possible for savers
 
Thanks great link. Thought i had easy option when I saw Revolut had a high rate but seems they have excessive fees
 
Trade republic stores the money in your cash account in one of five consolidated omnibus trust accounts held by five banks – Solaris SE, Deutsche Bank, J.P. Morgan SE, Citibank Europe plc and HSBC Continental Europe S.A.

Trade Republic states that all funds in the cash account are legally protected up to €100,000 per investor. They state that money in the Solaris, Deutsche Bank and JP Morgan accounts are subject to supervision by the Deutsche Bundesbank and that Citibank Europe and HSBC are supervised by the Central Bank of Ireland.

Deposit Guarantee Schemes within the EU are regulated by Directive 2014/49/EU on Deposit Guarantee Schemes. The Directive provides that eligible deposits must be subject to protection of €100,000 and contains the following definitions and provisions:

A "deposit" is defined as a credit balance which results from funds left in an account or from temporary situations deriving from normal banking transactions and which a credit institution is required to repay under the legal and contractual conditions applicable, including a fixed-term deposit and a savings deposit, but excluding a credit balance where:

(a) its existence can only be proven by a financial instrument as defined in Article 4(17) of Directive 2004/39/EC of the European Parliament and of the Council (1), unless it is a savings product which is evidenced by a certificate of deposit made out to a named person and which exists in a Member State on 2 July 2014;
(b) its principal is not repayable at par or
(c) its principal is only repayable at par under a particular guarantee or agreement provided by the credit institution or a third party.

A "depositor" means the holder or, in the case of a joint account, each of the holders, of a deposit;

A "financial instrument" is defined equivalently to Directive 2004/39/EC and is defined as:

(1) Transferable securities;
(2) Money-market instruments;
(3) Units in collective investment undertakings;
(4) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, or other derivatives instruments, financial indices or financial measures which may be settled physically or in cash;
(5) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event);
(6) Options, futures, swaps, and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market and/or an MTF;
(7) Options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled not otherwise mentioned in C.6 and not being for commercial purposes, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are cleared and settled through recognised clearing houses or are subject to regular margin calls;
(8) Derivative instruments for the transfer of credit risk;
(9) Financial contracts for differences.
(10) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates, emission allowances or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event), as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market or an MTF, are cleared and settled through recognised clearing houses or are subject to regular margin calls.

An "eligible deposit" is defined as deposits that are not excluded from protection pursuant to Article 5. The Deposits excluded from protection under Article 5 are:

(a) subject to Article 7(3) of this Directive, deposits made by other credit institutions on their own behalf and for their own account;
(b) own funds as defined in point (118) of Article 4(1) of Regulation (EU) No 575/2013;
(c) deposits arising out of transactions in connection with which there has been a criminal conviction for money laundering as defined in Article 1(2) of Directive 2005/60/EC;
(d) deposits by financial institutions as defined in point (26) of Article 4(1) of Regulation (EU) No 575/2013;
(e) deposits by investment firms as defined in point (1) of Article 4(1) of Directive 2004/39/EC;
(f) deposits the holder of which has never been identified pursuant to Article 9(1) of Directive 2005/60/EC, when they have become unavailable;
(g) deposits by insurance undertakings and by reinsurance undertakings as referred to in Article 13(1) to (6) of Directive 2009/138/EC of the European Parliament and of the Council (1);
(h) deposits by collective investment undertakings;
(i) deposits by pension and retirement funds;
(j) deposits by public authorities;
(k) debt securities issued by a credit institution and liabilities arising out of own acceptances and promissory notes.

A ‘credit institution’ means a credit institution as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013. This means "an undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account;". The Central bank website also says this includes the concept of an "electronic money institution" which it defines as: "An institution which issues electronic money. Electronic money means monetary value as represented by a claim on the issuer which is: a) stored on an electronic device; b) issued on receipt of funds of an amount not less in value than the monetary value issued; or c) accepted as means of payment by undertakings other than the issuer."

A relevant article from the Directive

Article 7(3) of the Directive provides that "Where the depositor is not absolutely entitled to the sums held in an account, the person who is absolutely entitled shall be covered by the guarantee, provided that that person has been identified or is identifiable before the date on which a relevant administrative authority makes a determination as referred to in point (8)(a) of Article 2(1) or a judicial authority makes a ruling referred to in point (8)(b) of Article 2(1). Where several persons are absolutely entitled, the share of each under the arrangements subject to which the sums are managed shall be taken into account when the limit provided for in Article 6(1) is calculated."

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The situation with Trade Republic seems a bit tricky / complicated.

From what I can tell, you do not have an agreement with any of the five banking institutions Trade Republic puts your deposit with. You have an agreement directly with trade republic that says (i) they will pay 4% interest on the money you store in the cash account and (ii) this money will be stored with the other banks on your behalf. Trade Republic has a separate agreement with these banks to deposit your money.

In this case it appears that Trade Republic is the depositor, rather than you, because it is the holder of the deposit with the banks.

However, it seems that Article 7(3) of the Directive then steps in to say that in these sorts of circumstances, the person who is absolutely entitled to the sums must be covered by a deposit guarantee scheme (providing they can be identified, which is straightforward in the case).

This reflects the Irish implementation of the Directive where the regs provides that: "(4) Where a depositor is not absolutely entitled to the sums held in an account, the person that is absolutely entitled shall be covered by the guarantee, provided that he or she has been identified or is identifiable before the decision date; (5) Where several persons are absolutely entitled to the sums held in an account, the share of each under the arrangements subject to which the sums are managed shall be taken into account when the limit provided for in Regulation 11(1) is calculated."

So it would appear the money must be protected under the German / Irish deposit guarantee schemes because trade republic is a depositor depositing it in a bank account of another who is absolutely entitled to it.

I can't be sure though and it'd be helpful to get the views of someone more familiar with this area.
 
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Above post was merged from another thread - thought it might be helpful for discussion.
 
A friend mentioned that German tax needs to be paid after 1,000 in interest is earned in a single year but I do not see this mentioned on their website. Can anyone verify this from experience?
 
If you are resident in Germany that is the case as TR only allows up to 1k of "tax free DIRT allowance" to be assigned. This is fine for singles as that is the max "tax free DIRT allowance" that a single person is entitled to, but for married couples they might want to assign the 2k allowed by the German tax office, and as allowed by many other banks. TR refuses to allow more than the 1k to be assigned so for couples like us with more than 1k in interest we have to submit a tax return to reclaim the overpaid "DIRT", but this is all irrelevant for you if you are resident outside Germany. Non-residents are not charged German tax at all:
 
I Just noticed this evening that I can generate account statements now instantly on the traderepublic app. Seems to be a step in the right direction and it avoids some of the hassle and cost that people have discussed previously in getting a statement outside the quarterly reports.
 
I read on RTE a couple of weeks ago that they were saying this is DGS covered up to €50k. Pretty dangerous statement to make given the uncertainty around the way funds are actually held and potential knock on effect, however low that might be.
 
Can anyone see the monthly interest payment for 1st May? I have the account since mid-Apr. Yesterday I could see x amount so far of interest with next payout = 1st May in the app and today I can see as accrued amount so far same x amount+1 more day of interest so far as additional amount compared to yesterday but with next payment day of interest 1st June (!)... So confusing!
 
This happens. Look under the ‘transaction’ section and you should see April’s interest as paid on May 1st. Sometimes takes a day or two to show up. Bear in mind it also tends to show as pending for a few days before you can actually withdraw that interest portion.