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German online broker - Trade Republic offering 2% on client funds

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  • Registered Users Posts: 5,161 ✭✭✭Yggr of Asgard


    Well, it's not a savings product, it's a 2% interest on the cash portion of your securities account!

    Significant difference, they are not a bank (they might call themselves one, but they are not).

    One might use it for cash savings, but it is not a savings account with Trade Republic.

    The cash is not even stored with Trade Republic, it's on a ring-fenced account with one of their Partners (Citibank for most, Deutsche Bank for others) and while you can transfer money easy to the individual IBAN (DE...) associated with the securities account it might take up to 2 days.

    Plus, you can only withdraw to a nominated account (with again can take 2 days). You can use any SEPA account for that.

    All of this is to entice you to use their brokerage service (Indvidual or fractional shares, EFT, Savings Plans etc.).

    It's a nice free account to store some cash for 2% interest but remember that you will have to do a tax return as DIRT is not taken automatically.

    Opening is easy if you have a smart phone, selfie, picture of the passport (ID card) from different angels, TAX ID and that's it. Can take 5 minutes during business hours but significant longer if you also need to provide proof of residence (because it's not in your passport).

    If you are willing to manage the tax implications and don't need short term instant access to your savings than 2% for free is a great deal.



  • Registered Users Posts: 2,611 ✭✭✭Cape Clear


    Any risk to funds here?



  • Registered Users Posts: 5,161 ✭✭✭Yggr of Asgard


    The Cash element on the securities account is covered for up to €100,000 per investor. 

    So, when either Deutsche Bank or Citibank folds than you will get your money via the appropriate protection group (if they are solvent).

    Again this is because it's an escrow account and not an account with Trade Republic, in theory Trade Republic's solvency should not have an impact on your cash element of the securities account.

    All funds in the cash account are legally protected up to €100,000 per investor. They are held in an escrow account at one of our partner banks. These currently are Citibank Europe plc and Deutsche Bank. Deutsche Bank is subject to supervision by the Deutsche Bundesbank and the BaFin (Federal Financial Supervisory Authority Germany). Citibank Europe plc is supervised by the Central Bank of Ireland.

    The securities in your custody account are not covered by the deposit guarantee scheme, they are your property instead. They are deposited by our custodian bank HSBC Germany in the corresponding depositories in Germany and abroad. Therefore, the securities belong to you for all purposes.




  • Registered Users Posts: 5,539 ✭✭✭JTMan


    Regarding how long deposits take, and I appreciate that transfer times vary, but as an example ... a transfer I did from PTSB to Trade Republic took about 2 hours.



  • Registered Users Posts: 16,523 ✭✭✭✭yabadabado


    Lodge 50k ,€1000 interest and DIRT at 33%.

    Tax return for DIRT I presume is fairly straightforward?Trade Republic would just issue a statement to upload to ROS .



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  • Registered Users Posts: 88 ✭✭KJK1LL3R


    Anyone have issues adding their TAX ID within the Trade Republic app? I assumed it would be my PPSN but it doesn't allow me to input letters (only numbers) and when I enter my PPSN without the letter it says it is an incorrect TAX ID.



  • Registered Users Posts: 388 ✭✭willycat


    KJKiller: it worked for me, I don't remember exactly how I did it, but I entered both letters and numbers and it worked. I remember there was a strange space in between them, like 2 digits, then 4, or something like that.

    Regarding tax, what others mentioned here is correct: They pay you gross interest (2% anual on up to 50K euro) but they don't deduct DIRT. When submitting your tax returns next year, there's a place to add interest received from deposits. On one line, it says "interest from deposits from which DIRT was deducted" (this is where you put the net amount you got from the bank in savings accounts), then on the other, it says "interest from deposits from which DIRT was not deducted"; here's where you should put the interest TradeRepublic -or any other entity who doesn't automatically deduct DIRT- gives you.

    I've been using TR since January, if anyone is interested I have a referral code and you get a welcome bonus of up to €50 for joining through it. DM me if interested.



  • Registered Users Posts: 16,523 ✭✭✭✭yabadabado


    Did you find out how to enter the PPSN ?


    I'm having same issue as you.



  • Registered Users Posts: 380 ✭✭A P


    Hi - it wouldn't work for me on my mobile either but it worked when I tried on my laptop.

    If anyone would like a referral, feel free to send a PM. I'll be happy to split the €50 bonus when it arrives. Cheers



  • Registered Users Posts: 388 ✭✭willycat


    You don't need to add your PPS when registering, you have something like 60 days to add it (they remind you at the app). DM me for a referral code



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  • Registered Users Posts: 16,523 ✭✭✭✭yabadabado


    I've already ready registered.

    Got PPS added via laptop.



  • Registered Users Posts: 88 ✭✭KJK1LL3R


    Had to do it through a web browser on my laptop instead of the Android app on my phone.



  • Registered Users Posts: 1,284 ✭✭✭AmberGold


    IBKR offer 4%



  • Registered Users Posts: 5,161 ✭✭✭Yggr of Asgard


    No, they don't.

    They offer up to 4.08% with loads of restrictions and depending on how much cash is of your total overall portfolio and how big your portfolio is.

    To get the full 4.08% you need to have a portfolio of at least 100,000 $ and even than as the first 10,000$ do not get interest, the effective rate is lower. And for amounts below that, it's way less.

    Trade Republic does not care about your portfolio size, it just pays 2% on the cash portion, while IBKR has a complicated formula:

    https://www.interactivebrokers.ie/en/accounts/fees/pricing-interest-rates.php



  • Registered Users Posts: 129 ✭✭dickface


    Lightyear currently offer 2.25(-.75 of ecb rate)



  • Registered Users Posts: 17,768 ✭✭✭✭Mantis Toboggan


    Could someone tell me how to withdraw money from the app?


    Edit ; sorted

    Post edited by Mantis Toboggan on

    Free Palestine 🇵🇸



  • Registered Users Posts: 15,342 ✭✭✭✭Supercell


    How do you find them? I have a fair whack sitting in degiro right now as I'm concerned the market is teetering on the brink and would like to get some interest on that, degiro gives nothing.

    Can you get an annual statement from them for taxation/CG1 form ?

    One final question, is JAM available (JPMorgan American Investment Trust Plc) on there?

    Thanks!

    Have a weather station?, why not join the Ireland Weather Network - http://irelandweather.eu/



  • Registered Users Posts: 5,539 ✭✭✭JTMan


    Lightyear now pay 3.00%.

    You find them here https://lightyear.com/eu

    They don't seem to offer JAM



  • Moderators, Computer Games Moderators Posts: 23,095 Mod ✭✭✭✭Kiith


    TR has gone up to 4% now, with Lightyear at 3.25%.



  • Registered Users Posts: 42 TabbyLongTails


    How safe is TR? The t&c’s don’t read as nicely to me as the likes of golightyear but maybe I’m missing something.

    Post edited by TabbyLongTails on


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  • Registered Users Posts: 16,523 ✭✭✭✭yabadabado


    It has the bank guarantee so I don't see the issue.



  • Registered Users Posts: 42 TabbyLongTails


    My referral will pay me €30 when someone signs up, willing to split it 50-50 if anyone is interested: https://ref.trade.re/mr10qqcz



  • Registered Users Posts: 437 ✭✭runjb


    Since Oct 1st, now earning 4% interest on deposit with Trade Republic. I've found it all to be very straightforward since joining them in January. I have a referral link for anyone looking to join:

    https://ref.trade.re/17sbl60b Happy to split referral bonus.



  • Registered Users Posts: 374 ✭✭otterj


    Happy to recommend them also.




  • Registered Users Posts: 2,331 ✭✭✭Citizen  Six


    What's the story with Trade Republic saying you need to be a German resident on their website?




  • Registered Users Posts: 2,331 ✭✭✭Citizen  Six


    Anyone?

    Been looking around, and their 4% seems the best option to put a lump sum away for a couple of years. Wanted to pay it off my mortgage, but fixed at 2%, and there's penalties to pay off a lump sum. So I want to stick it away at Trade Republics 4% rate. Am I doing the right thing?



  • Registered Users Posts: 45 melchior1951


    You don't need to be a German resident. There is no guarantee though that the 4% interest rate will stay for a couple of years. Most likely it will not. If you want a long term investment with a guaranteed rate, maybe look at Raisin.



  • Registered Users Posts: 2,331 ✭✭✭Citizen  Six


    Thanks. I noticed Raisin, but haven’t looked too much into what they offer, or what bank guarantees they have in place. I’ll look a bit deeper.



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