Etoro Paying 4.5% on USD Deposits

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presidenttttt

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Etoro offer 4.5% on cash over 50k. This is APY. Is there any catches or risks I should consider? Seems one of better rates?
 
What interest rate does the first 50k attract

Is it covered under EU deposit scheme thingy ...100k?
 
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It's 4.5% on balances between $50,000 and $249,999 according to the above.
Are my funds safeguarded?

As a regulated company we are required to safeguard your funds in accordance with specific client money rules. eToro (Europe) Ltd is a member of the Investor Compensation Fund (ICF), which compensates investors only up to twenty thousand EUR. Additionally, in certain cases your funds deposited in eligible European banks are backed by the Deposit Guaranteed Scheme (DGS). The DGS has a maximum payout limit of up to EUR 100.000 / GBP 85.000 per depositor, per bank.
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Simple interest only.
How and when is the interest calculated?

Although the interest rate is annual, it is calculated daily and paid monthly. Each day, the balance entitled for interest payment is calculated (minus any interest and/or any fees due to us). This amount is multiplied by the daily interest rate. At the end of each month, the cumulative amount of interest is totalled and then paid automatically no later than the 5th business day of the following month.

– The 1st determination is according to the amount in the balance, with $10,000 earning 2% yearly, non-compounded.
– $10,000 balance over a full calendar year earning 2% = earning $200 interest per annum
– 2% yearly when divided by 365 gives the daily rate of 0.005479%.
– 0.005479% x $10,000* = the daily interest earned at $0.5479
– Cumulative Interest for 1 month (30 days) is $0.5479 x 30 days = $16.44
– Cumulative Interest for 1 Year (365 Days) is $0.5479 x 365 days = $200

* Assuming balance is kept at that same level for the full period.
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Last edited:
Lightning said:
Exactly. This is a USD product. Not EUR.
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But it's still available to Irish savers?
Although there's presumably a forex risk?
It's also not clear from what I posted above if the relevant guarantee is only €20K or €100K?
 
Yes, this USD product is available to Irish residents.

Yes, there is a significant FX risk if one moves their money from EUR to USD.

eToro Money offers 100,000 EUR (or local equivalent) protection.

eToro Securities offers 20,000 EUR (or local equivalent) protection.

eToro also offers private insurance for Platinum members up to 1 million EUR per person. (Similar to what T212 offers all their customers).

There are much simpler USD saving products available for Irish customers such as the T212 product that pays 4.6%.
 
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