Light-year Savings Account Paying 2.50% Instant Access

JTMan

Lightyear ( https://www.golightyear.com/eu ) are now paying 2.50% on instant access euro savings.

Light-year is a trading app but can be used for savings only. It's FCA regulated with 20k EUR protection via investor protection.

The app is excellent and very easy to use.

Much better return than the awful return offered by Irish banks.

Referrals in the referral forum.

daheff

can confirm. They pay whatever ECB base rate is less 0.75%

Note they are really a stock trading app, but pay a return on uninvested funds, so not really a deposit account.

I use it and find it very good. Prefer the system to Raisin bank. Customer service are helpful and friendly (and sensible).

mp3ireland2

https://www.boards.ie/discussion/comment/120578413#Comment_120578413

How much do they charge per trade? Struggling to find an app with free trades. When dealing with €50 small purchases the €1 fee on trade republic takes the good out of it. Trading 212 was good when i lived in UK, no fee at all.

timple23

https://www.boards.ie/discussion/comment/120578413#Comment_120578413

Have you used raisin? I am considering it.

JTMan

https://www.boards.ie/discussion/comment/120581210#Comment_120581210

Trading costs are here: https://golightyear.com/eu/pricing

Basically, 1 EUR per trade in the EU.

Trading 212 is available here too.

JTMan

https://www.boards.ie/discussion/comment/120584513#Comment_120584513

Used Raisin for years. Another great option for savings with returns up to 3.50% but you are locked for a term.

Bobeagleburger

How does DIRT tax work with raisin? Or what are the tax implications?

Also, what's the fees?

Thanks

JTMan

https://www.boards.ie/discussion/comment/120584913#Comment_120584913

No fees with Raisin.

Deposit interest must be declared to the Revenue as part of your tax return. Any tax already paid is normally deductable.

mp3ireland2

https://www.boards.ie/discussion/comment/120584600#Comment_120584600

oh i hadn't realised. I'll have to empty my uk account first though i suppose. Trying to sell bits an pieces slowly over next year or two to keep under the radar!

timple23

So I created an account and lodged money.

Do I just leave it sit there? Or do I have to do something else to get the 2.5% AER?

JTMan

https://www.boards.ie/discussion/comment/120586951#Comment_120586951

Leave it sit there. You will get paid monthly.

TCP/IP

Only 20k protection is financial suicide if you are looking for anything decent.

timple23

https://www.boards.ie/discussion/comment/120586993#Comment_120586993

Will I get 0.2% interest per month? (2.5%/12)

JTMan

https://www.boards.ie/discussion/comment/120589166#Comment_120589166

Yeah, pretty much.

daheff

https://www.boards.ie/discussion/comment/120588933#Comment_120588933

In this day you need to spread money around

Even with an institution that has 100k guarantee, if you only have 100k you don't put it all in one place. If that goes bang you won't have any cash until the guarantee pays out. And you are never 100% guaranteed it will pay out. Bail in legislation has already happened in some countries, so I wouldn't be surprised to see it invoked in EU if another bank gets into trouble

So for me, put money across a number of accounts. Unlikely the will all be in trouble at the same time.

Somebody else asked about Raisin. I found them difficult to deal with. Opening accounts with some banks meant printing physical forms, sending to Raisin in Germany and them applying to the actual bank. All the while your cash is stuck in limbo with Raisin earning nothing.

JTMan

Printing physical forms is required only with a small number of providers via the Raisin platform such as BFF. Choose a bank that offers online sign up such as Younited or Banca Privata Leasing.

Markus Antonius

Wise (formerly Transferwise - why they changed the name I'll never know...) are an excellent online bank (far better than revolut in my opinion)

They give 3.12% for GBP and 3.85% for USD balances. It's paid monthly and they have the 100K deposit protection.

They give 1.79% on euro too but you are better off converting your savings to GBP or USD if you don't mind the currency risk.

Cetyl Palmitate

https://www.boards.ie/discussion/comment/120594647#Comment_120594647

While the interest rates are good, FX pl could outstrip any gains. There has been 20% and 10% swings from highs to lows in eurusd and eurgbp over the last 2 years for example

JTMan

https://www.boards.ie/discussion/comment/120594647#Comment_120594647

Wise.com do not offer 100k protection. Wise.com offer 20k protection.

Light-year pay 4.50% on USD which is higher than Wise.com. But as the above poster points out, the FX risk is significant with this approach and you could loose more on FX than you gain in interest.

Mr Disco

https://www.boards.ie/discussion/comment/120585296#Comment_120585296

Under what radar? Are you actively engaged in tax evasion/fraud?

Bobeagleburger

Don't fall for it 😂

Markus Antonius

https://www.boards.ie/discussion/comment/120595035#Comment_120595035

I stand corrected on the deposit protection. You could also argue that holding only euro is risky in itself.

JackieChang

If I put the full guaranteed 20k into Lightyear, what's the absolute worst that can happen?

I'm not going to invest in anything, just park the cash there to get interest.

Bobeagleburger

https://www.boards.ie/discussion/comment/120601077#Comment_120601077

You'll earn €335 after tax if my maths are correct

JackieChang

https://www.boards.ie/discussion/comment/120601462#Comment_120601462

And would you risk 20k with an unkown broker for such a small return?

Bobeagleburger

https://www.boards.ie/discussion/comment/120602582#Comment_120602582

Me personally? No, I'd be looking at shares, but that's me.

Back to the question, 20k is guaranteed though isn't it?

JackieChang

https://www.boards.ie/discussion/comment/120602665#Comment_120602665

I already have shares. This is just house deposit money I want to send to Lightyear. Currently earning 0.00000000000001% in Permanent TSB.

Yes it's guaranteed. But by the Estonian government. Who knows how long it will take me to get my money back if they go bust.

JTMan

https://www.boards.ie/discussion/comment/120602665#Comment_120602665

Yeah, the worst case scenario for anything below 20k is ... Lightyear go bankrupt AND the banks that the segregated client money is held in also go bankrupt AND the Estonian government also goes bankrupt. Unlikely to say the least.

Unlike banks, brokers are not allowed lend out your money, so it is held in segregated client money accounts.

JTMan

Light-year have passed on the ECB rate increase in full. The rate is now 2.75%.

JTMan

Light-year have passed on the ECB rate increase in full. The rate is now 3.00%.

in2dark

The problem with all those options is that you cannot have joint accounts. No broker offers it, no raisin banks offer it. The only one I have found so far is bunq which is not a great rate. Anyone seen anything better for joint accounts?