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

murphaph1 said:
My virtual IBAN is from J.P. Morgan in Frankfurt by the way. TR uses them, Deutsche Bank and Citibank Ireland (hence the Irish deposit guarantee scheme should Citi fold its Irish operations would come into play)
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There's no doubt funds are protected by the DGS in relation to the escrow bank. Which is fine if the bank goes under, the customer gets their deposit back.

But if Trade Republic go under? I'm still not quite sure.

Securities with TR are at least covered for 90% (up to €20,000) under the Investor Compensation Scheme as per in their T&C's;
Trade Republic is affiliated with the Compensation Scheme of Securities Trading Companies (Entschädigungseinrichtung der Wertpapierhandelsunternehmen
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Presumably idle cash still falls under the 'securities' category in case of a brokerage insolvency.
 
If TR goes under the funds are still there I suppose so there is no need for any deposit guarantee scheme to kick in at all. The bank will have to (probably slowly, once proof of identity is provided) release the funds to the beneficial owners. I guess it's no different as to what happens if your one man band solicitor dies during conveyancing and your money is sitting in his or her beneficiary account.
 
can someone confirm whether TradeRepublic (covered by Citi EU) is protected by 100k Deposit guaranteed scheme? Curious if it is safe to hold more than €20,000 uninvested cash there?
 
noonamer said:
can someone confirm whether TradeRepublic (covered by Citi EU) is protected by 100k Deposit guaranteed scheme? Curious if it is safe to hold more than €20,000 uninvested cash there?
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You're not going to get much further confirmation than in the first few posts of this thread, without contacting TradeRepublic yourself.
 
RedOnion said:
You're not going to get much further confirmation than in the first few posts of this thread, without contacting TradeRepublic yourself.
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fair enough

EDIT:
Regardless of which partner bank holds your funds, here are a few ways your money is protected:

  • Both Deposit Guarantee Schemes (DGS) protect up to 100.000 EUR per investor, per bank.
  • Because your money is held in escrow accounts, it's kept separate from Trade Republic's assets.
  • We only use the funds within the framework of our Customer Agreement with you, namely for providing financial services.
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noonamer said:
fair enough

EDIT:
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Trade Republic is not a bank. If the bank where it places funds is covered by a deposit guarantee, and that bank fails, you'll get your money up to 100k including any other money you might have directly with that bank.

If Trade Republic fails, you'll presumably get your money back from the escrow account when the owners of the money are identified. Could take a while maybe. I'd rather have my money in a directly covered bank getting funds back in a few days.
 
podgerodge said:
Trade Republic is not a bank. If the bank where it places funds is covered by a deposit guarantee, and that bank fails, you'll get your money up to 100k including any other money you might have directly with that bank.

If Trade Republic fails, you'll presumably get your money back from the escrow account when the owners of the money are identified. Could take a while maybe. I'd rather have my money in a directly covered bank getting funds back in a few days.
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Would you actually get your money back in a few days? The bank guarantee scheme is a bit like having a backup generator siting in the shed untested until such time it is needed. I'd imagine if the DGS was called into action political and financial turmoil might compound it's smooth operation.
 
Harvard said:
Would you actually get your money back in a few days? The bank guarantee scheme is a bit like having a backup generator siting in the shed untested until such time it is needed. I'd imagine if the DGS was called into action political and financial turmoil might compound it's smooth operation.
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Yeah who knows how long it would take to get your money back but a few days seems more than a little optimistic to me. I'd be thinking weeks if not months to be honest!
 
You can also now buy fractional shares in Bonds - 2 Irish bonds appeared on the website today.

My app still hasn't got the update from 2% to 4% or the Bonds option. Probabaly being rolled out across Android and Apple today
 
Can you share which Irish bonds they offer? Unfortunately they are, like the other discount brokers, probably not traded on the Irish Stock Exchange.
 
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I suspect that, like stock trades on Trade Republic, the bond trades are done on the Lang & Schwarz exchange. As with Irish government bonds traded on the Frankfurt exchange (which you can access with DEGIRO), these seem to have very low volume. The first of the two listed by @TheJackal seems, if I am reading it correctly, to have last traded in July (https://www.ls-tc.de/en/bond/49586), and the second doesn't show any recent trades at all (https://www.ls-tc.de/en/bond/3027225). A pity.

(Apologies for going off-topic from Trade Republic's deposit rate)
 
According to this Reddit thread (requires auto-translation) there is a new version of the Trade Republic app and you have to activate the 4% inside the app.

It is not there for me but other posters are reporting the same with the Android app. Maybe it is on the way.

Has anyone managed to activate the 4%? Maybe an Apple app user?

I would rather confirm that this works for Irish users before updating the best buys.
 
Lightning said:
According to this Reddit thread (requires auto-translation) there is a new version of the Trade Republic app and you have to activate the 4% inside the app.

It is not there for me but other posters are reporting the same with the Android app. Maybe it is on the way.

Has anyone managed to activate the 4%? Maybe an Apple app user?

I would rather confirm that this works for Irish users before updating the best buys.
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iOS: I went ahead updated and activated it, seems fine, no issues
 
  • Trade Republic will pass through 4% interest p.a., on uninvested cash, to its existing and new customers as of October 1, 2023

finance.yahoo.com/news
 
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