Trading212 Euro Rates

[Lightning]

Trading212 acquired a German company called FXFlat a while ago.

Trading212 have now started onboarding new Irish customers onto the new merged Trading212 FXFlat entity called "FXFlat Bank GmbH".

Existing Irish Trading212 customers are mainly registered under the Trading212 Markets entity.

Existing EU Customers under the Trading212 Markets earn 2.20% on euro balances.

New Customers under the Trading212 FXFlat entity earn 2.50% on euro balances.

Hence, Trading212 are paying a market leading 2.50% for new customers, that are registered under Trading212 FXFlat entity which seems to be the default, and 100k protection.

Could it get more complex!!

Pitty to see Trading212 pay less to existing customers than new customers. Not a promo/introduction rate per se that expires after a period of time. Maybe existing customers will be switched entity in time.

 

[balders93]

I wonder if closing your account and creating a new one would help move across or whether that's asking for trouble.

 

[JamieB_]

Are you sayng that im only protected up to 50k because im an existing customer? But its 100k for new customers?

 

[ClubMan]

Are you sayng that im only protected up to 50k because im an existing customer?

Did you mean €20K?

Existing EU Customers under the Trading212 Markets earn 2.20% on euro balances. And get 20k protection.

 

[JamieB_]

Did you mean €20K?

Even worse :O

 

[faketales]

I opened my account two months ago and am with Trading 212 Markets Ltd.

I have money in ETFs, if I wasted just keep it in cash is it a regular deposit subject to DIRT or something else? Who is giving the 20k protection?

 

[balders93]

I wonder if closing your account and creating a new one would help move across or whether that's asking for trouble

I have successfully withdrawn my money from the Cyprus entity, downloaded my statements, closed the account, opened a new account with the FXFlat entity and am earning 2.5% interest, a pretty seamless experience all round.

 

[balders93]

And get 100k German protection

I do not believe you are guaranteed this on FXFlat while earning interest, only on your uninvested cash.

As soon as you opt in to start earning interest, T212 may put your cash in QMMFs which are only guaranteed to 90% of 20k.


From a chat with their chatbot:

When you earn interest on your uninvested cash, the protection limits are as follows:

Any uninvested cash is protected by the Entschädigungseinrichtung der Wertpapierhandelsunternehmen (EdW), which covers 90% of your eligible funds up to €20,000.

Additionally, any uninvested cash in your Invest account is protected up to €100,000 per person per German partner bank. This limit applies to the total amount you hold at each specific bank, regardless of whether it's deposited by Trading 212, other providers, or directly by you.

It's important to note that cash in QMMFs does not have the same €100,000 protection as cash held in banks.

Can I prevent t212 from putting my money in QMMFs while earning interest?

Unfortunately, there is no option to choose where your uninvested funds are stored, including preventing Trading 212 from allocating your money to QMMFs while earning interest.

 

[Lightning]

if I wasted just keep it in cash is it a regular deposit subject to DIRT or something else? Who is giving the 20k protection?

The interest is paid gross by Trading212; you then need to declare to Revenue via MyAccount under "EU Deposit Interest". The protection is via German Investor Protection.

I have successfully withdrawn my money from the Cyprus entity, downloaded my statements, closed the account, opened a new account with the FXFlat entity and am earning 2.5% interest, a pretty seamless experience all round.

Well done! Good to hear. Obviously this is only simple if you have no positions with Trading212.

I do not believe you are guaranteed this on FXFlat while earning interest, only on your uninvested cash.

As soon as you opt in to start earning interest, T212 may put your cash in QMMFs which are only guaranteed to 90% of 20k.

Thanks for the clarification. The 100k protection, advertised on their website, clearly therefore only applies if you don't opt into interest. I will make it clear in the best buys that the German Investor Protection scheme applies.

 

[Brego888]

Anyone get notification for interest increase for saving on cash with trading 212 today?
My wife got an email saying the EU rate has increased to 3% and this is reflected in app too.
Mine is still sitting at 2.2%

I should add she's a newer customer probably registered under the newer FXFlat system.

But the difference in 2.2 to 3 is huge

 

[Lightning]

Wow! The Trading212 website is reporting 3.00% AER too. Big increase as you say. And it seems to be just for FXFlat registered customers. Wonder how long it will last.

 

[Brego888]

Surely worth doing what @balders93 did above and close down an old account to open for the new rate now?

 

[Lightning]

Yeah, unless you have open positions and dont want realized tax issues.

 

[PolkaDot]

I signed up and am earning the 3% interest. Pretty good app. Didn’t realise it offered a debit card too, with cash back (2% until end of Feb, 0.5% thereafter, cap of €15). And free FX. It’s not too dissimilar to Revolut.

This is from the FAQ -

Is my money still protected?

Where your money is held in bank deposits, it is protected by the applicable deposit protection schemes of the respective banks, such as the Entschädigungseinrichtung Deutscher Banken GmbH (EdB) for German private banks, Deutscher Sparkassen- und Giroverband (DSGV) for savings banks, and Bundesverband der Volks- und Raiffeisenbanken (BVR) for cooperative banks.





Money placed with a QMMF is treated as an investment and not as money held with a bank. In the unlikely event that the QMMF fails to maintain their low-risk strategy, as with any investment, the protection will not be available. We carefully select all QMMFs to ensure that they are highly liquid, stable in value and maintain their highly regulated status.

 

[Lightning]

2% until end of Feb, 0.5% thereafter, cap of €15

Wow! It's 1.5% for existing customers for now. T212 are putting some effort into acquiring new customers.

 

[CharlieMac]

I signed up and am earning the 3% interest.

The interest is paid gross by Trading212; you then need to declare to Revenue via MyAccount under "EU Deposit Interest".

As soon as you opt in to start earning interest, T212 may put your cash in QMMFs which are only guaranteed to 90% of 20k.

Why would someone sign up for this and not opt to start earning interest? This doesn't sound like an amazing deal, better than leaving money in a current account, of course. I'm curious what is there to get excited about?

 

[PolkaDot]

I can’t actually remember “opting in” to earn interest. I might have accepted something during the registration. But I can’t actually recall.

I’m not getting particularly “excited” about it, but I think the simple fact that it’s basically a “Revolut” type produce that pays 3% interest on any cash just sitting in the account is good. So you can use it simply as a deposit account. Or you can also use it as an online bank for card payments etc - knowing you’re earning 3% all the time. The debit card can be added to your Apple Wallet/Google Pay etc.

 

[PolkaDot]

I can’t actually remember “opting in” to earn interest. I might have accepted something during the registration. But I can’t actually recall.

Update: I’ve just noticed I hadn’t actually opted in. When you log into the app, you need to go to the “Main Pot”, then select the relevant balance under the particular currency (EUR/USD/GBP) and in the menu buttons along to top select “Interest” on the right hand side. Then select “Enable”.

It then provides the following info which needs to be accepted:

Important considerations

Your cash may be held in a qualifying money market funds (QMMFs).

QMMFs are required by regulations to maintain a low-risk strategy by investing in financial instruments such as government bonds.

QMMFs are subject to higher regulatory scrutiny and must meet higher quality standards than other money market funds.

• Credit risk. If a QMMF in which your cash is invested becomes insolvent, you may lose some of your cash. To manage this risk, we select only high-quality QMMFs.

• Management risk. Performance can be affected by the decisions made by the QMMF manager. Poor investment choices or strategies could result in lower returns or increased risk. To manage this risk, we select only reputable QMMF managers.

• Interest rate risk. The value of the assets in a QMMF can be affected by changes in the interest rates of central banks. If interest rates rise, the value of existing underlying assets, such as bonds, might decrease.

• Liquidity risk. While QMMFs are usually highly liquid, extreme market conditions may impact this. Under such circumstances, a high number of withdrawal requests could potentially lead to delays.

 

[PolkaDot]

Thanks for the clarification. The 100k protection, advertised on their website, clearly therefore only applies if you don't opt into interest. I will make it clear in the best buys that the German Investor Protection scheme applies.

One follow-up point of information on this....opting in to interest doesn't guarantee that you won't have 100k bank deposits protection. It's more the case that you may not have it.

They show you how your balance is held. For example, my full cash balance is currently held 100% with J.P. Morgan Bank, which presumably means I have the relevant bank savings protection on that. I guess this is useful, as if I keep adding cash to the account, but then end up with too large a % held in QMMF, I can try to reduce it back down through withdrawals. At least it's visible where the cash is held and you can be aware of whether it is bank or QMFF.

From the FAQ:

How does Trading 212 hold my cash to earn this interest?

As we're not a bank, we use a mixture of products and vehicles such as qualifying money market funds, time deposits, and current accounts. This is why it's mandatory to accept QMMFs to receive interest.You can see how your cash is held at any time from your interest on cash dashboard. This data's updated once per day at midnight and is based on your settled cash balance. Learn more about settled cash balances

 

[PolkaDot]

They have extended the 2% cashback on debit card transactions until 31st July 2026. Up to a cap of €15 per month.

P.S. The subject header of this thread should be edited to say 3% instead of 2.5%