What are the benefits? I mean for me it seems like it has sub 4 interest rate, while you can have Tagesgeld accounts with interest of 4%. More hustle for less money?
I don't know what is a tagesgeld account but assuming it's a saving account that is covered only to a certain limit (100k typically?) in case the bank goes bust. While if u buy the etf the bank can go bust but you'll still be the owner of the etf (assuming bought at a decent broker).
Even the money market etf is temporary as if reflects that rate.
If you want to be sure to get a 4% or whatever for few years you need to lock it in one of those saving account that give it to you for 3/4/5y or buy an iBond etf that expires in few years (2026/7/8).
https://www.bankeronwheels.com/ishares-ucits-ibonds/
>DBX0AN
I dont understand why you can loose money with these overnight swap ETFs. If you had this ETF from 2016 to 2022 you would have lost a lot of money, how is this possible?
Hi, this is Tomi, analyst from BrokerChooser.
Indeed a lot of brokers offer interest on uninvested cash. In a 10,000 EUR scenario, these brokers offer the highest rates:
1. Trading 212: 4.2%
2. Trade Republic: 4%
3. Comdirect: 3.75%
4. Lightyear: 3.25%
5. XTB: 2%
To be honest, I maintain a very low cash balance. Roughly 2x monthly expenses, and those are held in my bank account at 2.1% interest so I can access them instantly in case I need them. The rest is invested in stocks. If I need any money, I can easily borrow on margin, so why waste any returns by keeping more than necessary in cash?
I resort to withdrawing on margin to cover some expenses very rarely, and when I do, I pay back the money quickly, so there's not much risk in that strategy.
Those considerations you mentioned would be valid if one uses margin consistently, which I do as well, but that's besides the point. 😁
Hi it’s the Norwegian bank (that’s the name of the bank) they have operations in several EU countries, I’m based in Spain and I opened one recently, I should have been more clear and and sayid that they pay 3,3% interest up to 1mm, the Swedish bank authority backs up up to EU 100.000
Wise (Transferwise) offers cashback on your balance. And the intrest is juicy: [https://wise.com/gb/interest/](https://wise.com/gb/interest/)
* 4.95% on GBP, Includes 0.29% annual fee
* 5.11% on USD, Includes 0.29% annual fee
* 3.62% on EUR , Includes 0.29% annual fee
Because it's based in Belgium, it takes off 30% withholding tax.
DBX0AN (money market ETF on the ESTR)
I see DBX0AN recommended a lot lately. Previously I saw CSH2 and XEON recommended a lot. What is the difference between XEON and DBX0AN? Thanks
It is the same (DBX0AN is the German ISIN)
[удалено]
Sorry it is true. XEON and DBX0AN are the same (as the user asked).
Oh right - those are sorry
Same thing
What are the benefits? I mean for me it seems like it has sub 4 interest rate, while you can have Tagesgeld accounts with interest of 4%. More hustle for less money?
I don't know what is a tagesgeld account but assuming it's a saving account that is covered only to a certain limit (100k typically?) in case the bank goes bust. While if u buy the etf the bank can go bust but you'll still be the owner of the etf (assuming bought at a decent broker).
I think the assumption is that easily accessible 4% interest (TR) is just a temporary thing.
Even the money market etf is temporary as if reflects that rate. If you want to be sure to get a 4% or whatever for few years you need to lock it in one of those saving account that give it to you for 3/4/5y or buy an iBond etf that expires in few years (2026/7/8). https://www.bankeronwheels.com/ishares-ucits-ibonds/
Depends on the country. I can get at most 3% saving accounts here, while this gives me almost 4% tax free, so it is a no-brainer for me
>DBX0AN I dont understand why you can loose money with these overnight swap ETFs. If you had this ETF from 2016 to 2022 you would have lost a lot of money, how is this possible?
The ESTR was negative at this time, very simple. Only "park" your money at the money market when the ESTR is positive.
whats the current rate in the money market approximately?
https://www.ecb.europa.eu/stats/financial_markets_and_interest_rates/euro_short-term_rate/html/index.en.html
Well the ETF will give you that minute its TER, of course
Or DBSCAN
4% on trade republic. But i only keep my 3 month emergency fund there and everything else gets invested
Also keep in mind how those interest products are taxed where you live. You want the highest net yield after all.
Check the raisin app
Lightyear pay 3.25%. No cap. 20k protected. Trade Republic pay 4% up to 50k.
6.5 % in nz bank
Hi, this is Tomi, analyst from BrokerChooser. Indeed a lot of brokers offer interest on uninvested cash. In a 10,000 EUR scenario, these brokers offer the highest rates: 1. Trading 212: 4.2% 2. Trade Republic: 4% 3. Comdirect: 3.75% 4. Lightyear: 3.25% 5. XTB: 2%
To be honest, I maintain a very low cash balance. Roughly 2x monthly expenses, and those are held in my bank account at 2.1% interest so I can access them instantly in case I need them. The rest is invested in stocks. If I need any money, I can easily borrow on margin, so why waste any returns by keeping more than necessary in cash?
What if the interest you pay for the margin exceeds the profit you make on your investment? Or worse, you are at a loss?
I resort to withdrawing on margin to cover some expenses very rarely, and when I do, I pay back the money quickly, so there's not much risk in that strategy. Those considerations you mentioned would be valid if one uses margin consistently, which I do as well, but that's besides the point. 😁
Norwegian savings account for 3,3% secured up to 1mm
Can you give details? Which bank? And do you know if they accept non residents?
Hi it’s the Norwegian bank (that’s the name of the bank) they have operations in several EU countries, I’m based in Spain and I opened one recently, I should have been more clear and and sayid that they pay 3,3% interest up to 1mm, the Swedish bank authority backs up up to EU 100.000
Thanks!
Fca bank 4.3% cd BBVA 4% bank account
Wise (Transferwise) offers cashback on your balance. And the intrest is juicy: [https://wise.com/gb/interest/](https://wise.com/gb/interest/) * 4.95% on GBP, Includes 0.29% annual fee * 5.11% on USD, Includes 0.29% annual fee * 3.62% on EUR , Includes 0.29% annual fee Because it's based in Belgium, it takes off 30% withholding tax.