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

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.

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.

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 .

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.

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

I've already ready registered.

Got PPS added via laptop.

IBKR offer 4%

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

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!

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

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.

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

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.