📈 Now available: EVEN higher interest on uninvested cash!

📰 What's new
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Earn high interest on your uninvested cash in 2024!

The new rates apply from the 11th of January:
:eu: EUR - 4.00%
:us: USD - 5.00%
:uk: GBP - 4.50%
:poland: PLN - 3.75%
:czech_republic: CZK - 2.50%
:romania: RON - 3.00%
:hungary: HUF - 6.00%

:white_check_mark: Interest is paid daily.
:white_check_mark: No lock-in, withdraw anytime.
:white_check_mark: Enable or disable with a single tap.

Property 1=EUR
Property 1=EUR1200×1200 87.7 KB

24 Likes
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Very interesting! Congrats!! :tada: :confetti_ball:

What is the vehicle that enable these rates?

Plain-vanilla bank accounts or money market funds/ETFs or other? And where is their country of domicilie? (I’m asking these questions due to tax reasons.)

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We’re glad you like the news, @RLX :blue_heart:

The engine behind the higher interest rates is a mixture of products and vehicles such as qualifying money market funds, current accounts and time deposits.

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There will be more instructions on the specs of those interest rates (e.g. FAQ/Help page(s) and/or “terms”), explaining which type of vehicle/instrument and their domicile behind each currency?

In some countries, the tax authorities demand that we specify the type of instrument and their domicile. We can’t avoid the tax inquisition.

I prefer and imagine other investors too, to understand the tax implications before investing, to avoid potential headaches.

Btw, the T212 will continue withhold tax of 20%?

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Are the presented interest rates base or APY?

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I do understand how this information is important in the described scenario. I’ll check this further and get back to you once I have more on the topic.

No, the 20% tax on interest will no longer apply starting from January 1st, 2024.

The interest rates presented are APY. Also, welcome to the Community, @lrcf :tada:

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This IS Awesome! :rocket: :metal:

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Is the 4.5% (UK) available on the ISA Account univested cash, as well as the Invest account?

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Yes, the interest for uninvested GBP will be the same on both Invest & ISA :ok_hand:

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I’m connecting on 01/01/2024.
But the rates still seem to be the previous percentages.
Or did I miss something ?

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Yeah. They don’t change until the 11th.

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A couple of questions that I am hoping you can help with.

  1. Is this a qualified money market fund bubble wrapped product? i.e. is this an investment product rather than ‘bank interest’?

  2. What protection is offered? I know T212 offer various protections but if this money is in a money market fund - is capital at risk?

Thanks.

1 Like
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Welcome to the Community @wigguslong!

  1. This feature includes a mixture of products and vehicles such as qualifying money market funds, time deposits and current accounts.

  2. QMMFs are an investment. QMMFs are also required by regulation to maintain a low-risk strategy by investing in government bonds, for example. They meet certain regulations that allow them to be considered as cash equivalents.

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Starting from January 1st, the 20% withholding tax on interest will no longer apply. Any tax deducted in the fourth quarter of 2023 will be refunded to clients.

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Could T212 inform the withholding tax refund transaction as such in a separate transaction, for easy identification? :wink:

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Hi KrisG,

It is a wonderful move to increase the interest on cash holdings within accounts.

Can I check if the cash is still covered by the governments FSCS £85k scheme if I opt in.

Thanks!

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@RLX, the refund will appear as a deposit in the ‘Transactions’ tab. Each currency’s withholding tax is refunded as a separate transaction.

@Bullish-Bear, you can find out more in the article here.

3 Likes
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Good news! (You might even say twenty characters worth of good news)

1 Like
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Excellent news for us !