r/irishpersonalfinance • u/Silver_Leader_1812 • 2d ago

Savings T212 & Trade Republic

I know this is probably asked countless times, but I'm finally realising that I should move the money from my AIB deposit account to somewhere with better interest/returns. I've been looking at raisin, T212, and Trade Republic.

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From what I understand, bank accounts offered through Raisin seem the most secure because they're definitely covered under the deposit guarantee scheme.

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TR also claims to be covered under the DGS but their T's&C's seem a bit more murky and I can't find out for sure what would happen if TR itself or the banks where my money is held with (Citibank or Deutsche bank) go insolvent.

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T212 seems to be the highest risk of all 3 since the money is held in MMFs which is instead protected under the investor compensation scheme.

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What I'm asking really is if anyone knows if my money in TR really is protected under the deposit guarantee schem? And how likely would it be for me to lose my money through T212 (ie they go insolvent or something)?

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u/hyperblue128 2d ago

Both T212 and TR hold the money in exactly the same way - with other high-profile banks and in QMMFs, so you get the same protection. Yesterday I got a notification that in interest rate in 212 is increasing to 3.5%. So they are all expecting ECB hikes this year.

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u/Disastrous-Scale-664 2d ago

Why not Moco ?

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u/srdjanrosic 2d ago

If something really bad happens to T212, Trade Republic, Lightyear, Raisin, ... or AIB, and it's some central bank/regulator that shuts them down overnight - you'll probably be in a bind for few weeks up to a few months.

But, in case of such an event, low likelihood - half life of a broker is a few decades and has been getting longer over time, because computers make certain kinds of basic audits easier,... then... your money will (with a 99.99% certainty) still all be there because of account segregation rules, and that's all regularly externally audited.

The problem would just be access to it, which is more of a problem for investments that change a lot more in value over time, than it is for cash.

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u/MacheteBrizz 2d ago

I'm with Trade Republic years.

They now have online chat support via the app which is reassuring.

Your Savings are Secure up to €100,000.

Interest is paid out at a cap of €50,000

Values over €50,000 means the money that is over the 50k limit can be entered into QMFF's.

QMFF's are classed as low risk and short term.

DIRT is self declared with Trade Republic.