Trade Republic paying 4% on deposits up to €50,000

3.10. Asset Protection Scheme
Trade Republic is affiliated with the Compensation Scheme of Securities Trading Companies (Entschädigungseinrichtung der Wertpapierhandelsunternehmen – hereinafter "EdW"). Pursuant to Sec. 6 (1) of the German Deposit Guarantee and Investor Compensation Act (Anlegerentschädigungsgesetz – hereinafter “AnlEntG”), the EdW is established as a special fund of the German Federal Government with no legal capacity at the Credit Institute for Reconstruction (“Kreditanstalt für Wiederaufbau – hereinafter “KfW”). The AnlEntG is the legal basis for the activities of EdW.
EdW provides compensation in accordance with the AnlEntG if an assigned securities trading company runs into financial difficulties and is no longer able to meet its obligations to its Customers arising from Securities Transactions. BaFin determines when this condition is met and publishes this decision in the Federal Gazette ("Bundesanzeiger"). The claim for compensation amounts to 90% of the investor's claim from Securities Transactions against Trade Republic, up to a maximum of EUR 20,000.00. There is no claim for compensation if funds are not denominated in the currency of an EU member state or in euros. Further reasons for exclusion are set out in Sec. 3 (2) AnlEntG.
If Trade Republic itself has to file for insolvency and any payments resulting from Securities Transactions have not yet been booked to the Omnibus Trust Account, the Customer is protected by the EdW - as described above - up to an amount of EUR 20,000.00...........

 

Is this the gist of it?;

-Citi go insolvent - you're covered by the DGS.

-TR go insolvent - you're covered for your full amount, as your funds are ringfenced in Citi escrow account.

-Citi go insolvent due to fraud (I know, near impossible) - Does the DGS cover fraud? Couldn't really determine that by searching online.

-TR go insolvent due to fraud - which is the biggest worry - the investor compensation scheme of 90% up to 20k has been mentioned.
Thus essentially relying on sound regulation and supervision, and to trust that the auditing practices are actually verifying that customers funds are being correctly booked into one of the Trust/escrow accounts.

If the funds are not in the Citi escrow account anymore due to embezzlement - essentially the equivalent of someone accessing your money unauthorised and withdrawing all your funds - there's surely a recourse for customers to be compensated for the full amount of their cash balance from some authority in Germany. Could the DGS still be enacted. Would Germany really allow so many retail customers be defrauded without full reimbursement.
 
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I'm already a TR customer: why am I requested to accept new conditions to upgrade from 2% interest to 4% interest? Which conditions are changing?
 
Out of interest, what information exchange does a referral entail?
As this is an anonymous forum, sometimes opinions and questions on the site are best kept that way.
What would a referral require from me on this?
 
AndroidMan said:
Out of interest, what information exchange does a referral entail?
As this is an anonymous forum, sometimes opinions and questions on the site are best kept that way.
What would a referral require from me on this?
Click to expand...

You give someone a link that looks like this https://traderepublic.com/en-ie/referral?code=
The bit after the code= is your referral id and there is nothing identifying in there, it is just a mix of letters and numbers. I don't think the person who uses your referral link sees any personal information but they may see your name at some stage, I can't remember.
 

No you don't see any personal info.

Question for TR users, is withdrawing the money held there back to either a N26 / Revolut account (capable of SEPA instant) using SEPA instant or only possible via regular bank transfer and takes a few days?
 
boomshine said:
Question for TR users, is withdrawing the money held there back to either a N26 / Revolut account (capable of SEPA instant) using SEPA instant or only possible via regular bank transfer and takes a few days?
Click to expand...
Only regular SEPA unfortunately.
But interesting enough transfer from Revolut to TR going through Instant usually.
 
Has anyone noticed delays with deposit?
I have deposit sent yesterday from EBS still not received (but Lightyear already cleared it, they were sent almost at the same time).
Revolut deposit is still not received, but usually it was about few minutes.
 
noonamer said:
Has anyone noticed delays with deposit?
I have deposit sent yesterday from EBS still not received (but Lightyear already cleared it, they were sent almost at the same time).
Revolut deposit is still not received, but usually it was about few minutes.
Click to expand...
Yes I did a transfer from Revolut yesterday morning, took over 24 hours v a couple of hours usually
 
noonamer said:
seems like their payment provider is really struggling with load they caused by increasing interest rate...
Click to expand...
It is automated. There is no load or volume as such, its not like its a manual task and some poor chap has a pile of paperwork to deal with.
 
AndroidMan said:
It is automated. There is no load or volume as such, its not like its a manual task and some poor chap has a pile of paperwork to deal with.
Click to expand...
Citi needs to reconcile it, then TR reflects in their system. Bigger volume likely to increase the processing time.
 
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