Right now the difference (3.75% versus 3.97%) is not huge but with ECB rates expected to decline, it might be worth moving money before the 30 August deadline to ensure you lock the rate until 31 December.
Advanzia Bank Lux Paying 3.40% AER Instant Access for First 3 Months
- Thread starter Lightning
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Right now the difference (3.75% versus 3.97%) is not huge but with ECB rates expected to decline, it might be worth moving money before the 30 August deadline to ensure you lock the rate until 31 December.
Would it be safe to have all €70k of my savings with Advanzia? I haven't had any issues with them thus far and I'm assuming the €100k EU Deposit Guarantee Scheme protection applies so it should be safe as long as it's less than €100k?
Advanzia seems OK but there is one bug in their system: if you change your reference account you need to manually delete the old reference account from the system, otherwise subsequent withdrawal requests automatically revert to the old reference account. That's how it was with the old website, not sure if they have fixed it with the new one.
The Lux 100k deposit protection scheme applies to Advanzia.
Thanks @Lightning I am a little bit annoyed at myself for not thinking of transferring everything across to Advanzia at 3.97% as soon as Trade Republic reduced their rates to 3.75% but as you say, the difference between 3.75% and 3.97% is minimal (only €110 on €50k) at present so I'll maybe just move €5k for the moment to lock in the interest rate until the end of the year and consider moving the remainder when the ECB rates drop further.
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With Trade Republic reducing their deposit rate to 3.5% on September 18th, would it then be a good time to move all of my savings (approx. €45k) out of it and across to Advanzia where it would continue earning 3.97% until the end of the year?
Why don't you look at the best buys threads diligently and kindly maintained by @Lightning?
Best Buy - Savings Best Buys
Savings Best Buys: There are 3 savings best buy threads on AskAboutMoney that are updated frequently. Instant Access and Notice Accounts - Lump sum variable rate savings. Fixed Term Deposits - Fixed Lump Sum Term Deposits from a few months to a few years. Regular Savings - Smaller sum...
www.askaboutmoney.com
Thanks @ClubMan I already have savings split between both Advanzia and Trade Republic so was more wondering if it is a wise idea to now shift all of my savings into Advanzia only, since there is now a more significant difference in the interest rates (3.5% vs 3.97%) from today. Or is it too risky to have my entire savings in Advanzia rather than spread across multiple savings accounts?
Check the deposit guarantees on offer from the relevant banks and regulators?
My entire savings would still be less than €100k, so I'm guessing it should still be safe enough to put everything into Advanzia, given they offer Deposit Protection up to €100,000 via Lux Deposit Guarantee. Is there likely to be any more EU deposit interest rate cuts before the end of the year?
If you stay inside the deposit guarantee you should be fine, but personally speaking I would not keep 100% of my savings in one place.
Yes, more ECB rate cuts are expected by analysts ...
ECB Cuts Rates as Expected, Trims Growth Outlook
The European Central Bank also slightly raised its guidance for core inflation in 2024 and 2025
www.morningstar.co.uk
What do you think is a good balance? 60/40 split in favour of Advanzia with the rest in Trade Republic? I thought that would be a good balance between the higher returns of Advanzia whilst still maintaining diversification so that all my savings wasn't in one place. Perhaps this is too conservative though and I should instead aim for something more like 70/30 or 80/20 for higher returns?
"From 01.01.2025, you will benefit from an attractive interest rate for a further 3 months, which is far above our standard interest rate. We guarantee you our special interest rate of 3.40% eff. p.a. (3.35% nom. p.a.) up to and including 31.03.2025.
This means that your entire balance will earn interest at the new rate from 01.01.2025."
This means that your entire balance will earn interest at the new rate from 01.01.2025."