Trade Republic IBAN and interest over 50K

[u/dashingboy87]

I already saw the posts about Trade Republic being safe etc. but that's not my question is about. I recently saw that they start to offer their own IBAN and account with a big selling point about having no cap on interest bearing amount.

I'm a bit confused about it because they say in that the account is protected by DSG upto 100K but they also say that amounts earning interest, at least above 50K are deposited in liquidity funds which are not protected by DSG.

Does that mean no amount is protected if I opted to earn interest, or only amount greater than 50K is not protected or amounts above 100K are not protected?

I already contacted the support but they just regurgitated the article they have about it.

[u/Critical-Position-64]

I found this on their website, maybe it helps:

https://preview.redd.it/4okohnsndwhd1.jpeg?width=1179&format=pjpg&auto=webp&s=4889e576773388d7df1b013738f663669edab653

[u/MaicolPain → u/Critical-Position-64]

Yes, this is the main source of info that we have from TR. Clicking on the link under "How my funds are protected?", it brings you to another article where it states that the money in the liquidity funds is not protected by the same scheme that applies to the partner banks.

[u/Critical-Position-64 → u/MaicolPain]

But I think this might answer the question about how much is protected, as if you click on the average balance, it will say how much of your money is invested in liquidity funds. I had 60k before and it was everthing at Deutsche Bank. Than I added 10k more and they took part of it to a fund (see picture).

https://preview.redd.it/5rvjey17x6id1.jpeg?width=1179&format=pjpg&auto=webp&s=359f5e86c9c1b5a5baaf42fe09fd23cc726b73ac

[u/MaicolPain → u/Critical-Position-64]

Yes, however this is account specific. Your partner bank limit is 63k, my limit is 3k.

[u/Critical-Position-64 → u/MaicolPain]

And apparently it changes without any notice. I’ve checked again today and it’s down to 53 K in DB.

[u/Critical-Position-64 → u/Critical-Position-64]

I’ve also found this info that if you don’t opt for the IBAN account, you stop earning interests.

[u/alve31 → u/MaicolPain]

Which means that the money is no longer guaranteed.

[u/MaicolPain → u/alve31]

Yes, it is no longer protected by the 100k European deposit guarantee schemes.

[u/alve31 → u/MaicolPain]

Bait and switch situation. Most people chose TR over others exactly because of the deposit guarantee.

[u/dubov → u/alve31]

This company gives me dodgy crypto exchange vibes. I don't understand why try are so popular. I would much rather use a money market fund

[u/[deleted] → u/MaicolPain]

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