Ideally I would have the option of where to put the cashback as feature, T212 could probably implement it. For example - I might want for all the cashback to be invested in one of my pies.
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Agreed. For me itās chase then Amex.
Hello all,
Please, could you help me with this, I canāt find an answer:
I am going to renew my Gym annual membership above Ā£600, and I have the option to pay it by card, so I thought to benefit from the 1.5% cashback,
The only issue is that I am not sure if the gym one-off payment is one of the Exclusions as membership or not??
Thanks
Such services are not among the excluded merchants, so youāll receive cashback.
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Thanks! I will use the T212 card then 
How is Trading 212 still offering 4.2% even though the ECB deposit facility interest rate was reduced to 3.75%?
0% of my money is currently in a QMMF, they say its all sitting in a bank account, so how can they be able to keep paying the 4.2%?
Even if it was 100% in a QMMF, I still donāt understand how it could be earning 4.2% unless there was a rotation towards riskier assets held within the money market fund.
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Banks pay interest on deposits they wish to, due to variable reasons, if the T212 banks want to pay more interest than ECB, whatās the problem?
Do you want T212 to stop paying higher interest???
Also not all banks have direct access to ECB lending facilities.
And those who have direct access to ECB, pay more to lend money, more than the 4.2%:
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Is not that I donāt want interest, but is has to be sustainable. I am not saying that T212 should stop paying interest, Iām just questioning the order of magnitude. Unfortunately, there are a lot of brokers that went under for overpromising without caring for the sustainability of their finances - there are no free lunches. In the meantime, I noticed the banks where T212 has my money deposited and I just wanna know if those banks truly have those yields. I know the QMMF T212 uses only yields ~3,5%. Iād prefer that T212 would pay less of interest and not losing money with this strategy, as I would feel safer regarding T212 finances. Unless T212 disclosures the agreements between it and JP Morgan/Barclay and Nat that show that they in fact give that yield back. I just wanna know this info in order to access my personnal risk - of course Iām not saying other people should reconsider T212. If they are ok, so be it.
When will this be available for European clients?
Itās not 212 offering the interest, but a group of partner banks. 212 will pass on whatever rate they are offering. Thatās simply it. You can see in the app where they hold your money, they are the ones offering the interest that 212 is then forwarding onto us.
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Thatās the point - I find it hard to believe that banks are offering such generous yield on Euro deposits. If we look to QMMF, the yield is already 3,5%, meaning that T212 accounts whose money is partially in QMMF, must be getting even higher yields from the banksā¦ Again, I just want to make sure that it is not T212 that is giving the remaining interest (I think is a risky bet from T212 in order to allure clients). If T212 can prove to me that banks are in fact offering such high yields, perfect! Otherwise, I respect the business decision of T212 in giving extra yield (which adds to its expenses), I am just not confortable with that, because I believe is not sustainable. Again, history is full of brokers that go under because of bets like these. (Iām from Portugal and we have some unfortunate experiences).
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If it helps, the U.K. base rate is 5%, yet the banks offer me 8% directly. Other ISA providers in the U.K. also offer the same rates as 212.
Tbh youāre worrying about nothing, and calling it a ābetā is wrong.
What you should focus on, is how your funds are held / segregated.
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How do i withdraw cashback
Banks are free to offer the interest rates they want to deposits (some Central Banks could put a cap on that, to prevent a race to the sky). Even in Portugal, an Euro Area country, has banks that have deposits with higher interest rate than 3.75%, as you can see in the image below:
Source: JRJordao 01/08/2024
The 3.75% ECB deposit facility rate isnāt the main rate for financing the banks. This rate is for money deposited by banks in ECB. When Euro Area banks want to lend money from ECB, they have to pay at least 4.25% (Main refinancing operations) or for banks in some difficulties, the 4.50% Marginal lending facility:
ECB interest rates:
Banks traditionally have a mix of funding sources:
- Retail deposits
- Corporate deposits
- High Net Worth individuals deposits
- Public institutions deposits
- Other Financial institutions deposits
- Central Bank loans and repos
- Banks loans from other banks
- Commercial Paper and Bonds (Financial Markets)
- Equity
- etc
Banks tend to diversify that founding sources, according to interest rates, maturity, type of funding instrument, type of stakeholder, etc.
Bottom-line, banks could lend money from Central Banks, other banks, corporations and natural persons with higher interest rates than the 3.75%.
European bank loans interest rates - based on average interest rates (aka Euribor):
What happens to many brokers, neobanks and EMIs, is that they use the excuse of the 3.75% ECB deposit facility rate to offer lower interest rates to their customers, and pocket the extra yield. Some neobrokers even charge a fee on the ā3.75%ā.
I will be VERY admired, to say the least, if the T212 would disclose this. If I were the T212, I wonāt disclose trade secrets, specially because they arenāt legally obliged to disclose their business agreements. And if they want to disclose that, their contracts with their counterparts have confidential covenants with penalties.
Instead of demanding sensitive and confidential information, try to focus to learn more about finance, in this case, about monetary economics and banking.
In the end, if you donāt understand some financial product or donāt feel comfort with that, you still have the final decision to not invest. In this case could use a simple button.
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Hi, thanks for the detailed response.
It is because I understand finance that I pose these questions. It seems to me that you may also underatand a little, so I would find strange you not at least question the magnitude of these rates.
Those generous portuguese rates have so many āstrings attachedā that are not exactly good comparables - and were promptly cut following recent monetary policy decisions that you must be aware of (contrary to T212 that continues with 4,2%).
If T212 invests my money, I have the righ to know where and the terms & conditions, just like doing a due diligence I would do before I invest in any financial asset. Like I mentioned, qmmf that T212 uses yields 3,5%, so to achieve 4,2%, banks would have to yield almost 5%, which in the Euro area I just find implausible.
In my view, these should not be considered trade secrets, T212 should be transparent with these kind of stuffs because they are dealing with peopleās money. And any people with knowledge of finance of course would want to know how this is possible given the current market conditions and monetary policy (, because as you might know āthere are no free lunchesā.
But as you correctly pointed out, this is personal, I am accessing my own risk, that s why I am questioning, and in no way I am trying to influence other people that are confortable without knowing the specifics.
If this helps you understand my scepticism:
The average deposit rate for Euro zone countries is 3,17% (April 2024, declining ever since).
The highest rates do not even reach 4%. And the kinds of banks T212 partners (JP Morgan, Barclays) which are among the most mainstream, that offer average yields - unlike the banks that you cited whose the great majority are small banks.
Yep just a little, besides being an Economist specialized in Financial and Monetary Economics, with professional experience in that area and in Corporate and Investment Banking.
Yes, some banks have some ālimitationsā, e.g. small size or from an African country with some bad reputation. But for example, you have BiG and Best with higher than 3.75%, to attract new customers.
But T212 already revealed that, a mixture of bank deposits and MMFs. The MMFs have KID/KIID/prospectus, but banks donāt explain here they invest the money they get from their customer deposits.
Btw, T212 as like other brokers, they donāt have a banking license, so they have bank accounts in banks, to park their customersā monies.
Interest rates for retail customers are lower than for higher amounts from institutions and deep pockets customers.
Tiago, do you think any bank is transparent on here they are investing to be able to offer (higher) interest rates? 
Try going to CGD, BCP, Deutsche Bank, Barclays, etc, and ask them to show their agreements on how they get money to pay (higher) interest rates.
If you were from one T212 bank, e.g. JPM Germany, you had 2 choices (for simplicity):
a) Go to ECB for 4.25% loan
b) Offer bank deposits with 4.20%
What option, will you choose?
The JPM Germany could pay 4.20% to T212 and then invests in other activity, mortgages, loans, carry trades, buy EUR and/or USD treasuries, reverse repos, etc. Look that I didnāt mentioned any stock, derivatives or crypto trade.
Iāve just started using this feature.
How long until cash appears usually? Unlike Chase, it doesnāt seem to show pending cashback.
Sorry for the late reply, @topher
We pay cashback as soon as the merchant settles the transaction. All earned cashback is credited daily to your Invest account automatically at the end of each business day.
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No worries @Veselin.V. Iāve worked it all out now. Itās a good product. The only downside is Iāve maxed out on cashback for the month!