Bank/EMI with 4%+ yield on savings?

[Lullaby]

Hello, I'm looking for a bank/EMI that offer at least 4% on cash for europeans, can you suggest some? Something like Xapo bank.

I'm interested also on other established financial platform (eg. P2P lending).

Thanks.

 

[bigdaddyleon]

Hello, I'm looking for a bank/EMI that offer at least 4% on cash for europeans, can you suggest some? Something like Xapo bank.

for EURO I would not think of any with 4%, there is currently at the "Renault bank direct" 3.30% with deposit protection.

I'm interested also on other established financial platform (eg. P2P lending).

There are many P2P lending platforms, but you should consider all of them with caution.
there is no deposit protection, but a few recommendations would be:
Income Marketplace
Mintos
Peerberry
Lendermarket
Monefit might also be interesting for you (subsidiary of Creditstar Group)
https://monefit.com/smartsaver/

 

[Martin Everson]

Hello, I'm looking for a bank/EMI that offer at least 4% on cash for europeans, can you suggest some?

Would be nice if you mentioned the currency?

 

[Lullaby]

Would be nice if you mentioned the currency?

Primarily euros, but i'm also open to usd if the interest rate is worth it.

 

[Martin Everson]

Primarily euros, but i'm also open to usd if the interest rate is worth it.

Don't know any and would not trust any offering 4% on Euros right now.

You can get 4.4% or so on dollar at HSBC Jersey. But if you are converting from Euros you may lose more than double that interest rate in dollar depreciation in under a year. Depends where exchange rate moves.

 

[Paul Tudor Jones]

Learn from Silicon Valley Bank (RIP) and don't risk 100% of your money just to make a an extra 1%.

 

[JustAnotherNomad]

IBKR has 4% or so on USD, not sure about EUR

 

[Radko]

I believe the Apple card with the Goldman Sachs account is offering above 4% on USD.
I don't think there's a financial institutions giving 4% in Euros, and if there is one out there I wouldn't trust it with my money.

 

[Lullaby]

@bigdaddyleon @Martin Everson What options do we have for interest rates in the 3 to 4% range?

 

[Martin Everson]

@bigdaddyleon @Martin Everson What options do we have for interest rates in the 3 to 4% range?

HSBC Jersey is offering up to 3.27% today on Euros.

https://expatexplorer.hsbc.com/interest-rates/
Their deposit rates change literally daily so could change tomorrow.

 

[bigdaddyleon]

@bigdaddyleon @Martin Everson What options do we have for interest rates in the 3 to 4% range?

Until now, I had not found a better offer than the "Renault Bank direct".
https://www.renault-bank-direkt.de/geldanlage/tagesgeld(3.30%)

Fixed deposit offers up to 4.50%
at Banca Sistema (Italy)

 

[USDT]

IBKR has 4% or so on USD, not sure about EUR

Right now, they are offering as much as 4.58%. However, if the amount is less than $100,000, a proportionally lower percentage is offered, and the first $10,000 is not taken into account. Overall, it's not bad, considering the cash insurance up to $250,000.
Interest Rates | Interactive Brokers LLC

 

[Martin Everson]

@Lullaby How much money are we talking about anyway that your looking to deposit?

 

[Lullaby]

@Lullaby How much money are we talking about anyway that your looking to deposit?

10-20k

 

[pomegranate]

Right now, they are offering as much as 4.58%. However, if the amount is less than $100,000, a proportionally lower percentage is offered, and the first $10,000 is not taken into account. Overall, it's not bad, considering the cash insurance up to $250,000.
Interest Rates | Interactive Brokers LLC

This is subject to withholding tax though

 

[Mike Forman]

This is subject to withholding tax though

This depend on your country of residence, some countries no withholding tax is deducted

 

[JustAnotherNomad]

This is subject to withholding tax though

Are you sure? Withholding tax on bank deposits was recently abolished to attract foreign investments in the US. There is still WHT on bonds etc. though.

 

[pomegranate]

Are you sure? Withholding tax on bank deposits was recently abolished to attract foreign investments in the US. There is still WHT on bonds etc. though.

I am never 100% sure about these issues but judging by my personal experience with IBKR it is the case.

This depend on your country of residence, some countries no withholding tax is deducted

I am not aware of any country that has a blanket 0% US withholding tax. EU/UK etc is usually 15%. Countries with no tax treaties (e.g. UAE) 30%. I think Mexico has 10%

 

[Radko]

I am never 100% sure about these issues but judging by my personal experience with IBKR it is the case.



I am not aware of any country that has a blanket 0% US withholding tax. EU/UK etc is usually 15%. Countries with no tax treaties (e.g. UAE) 30%. I think Mexico has 10%

That's what I thought, Mexico, Japan, Bulgaria, etc have a special tax treaty of 10% withholding, as opposed to 15% like the UK, etc, or 30% without tax treaty, like Dubai.
I don't know if there is a difference now between Dividends withholding and Interest withholding, I thought they were the same.

 

[JustAnotherNomad]

Dude, this is not about a treaty. The US has no withholding tax on interest paid on bank deposits anymore. No need to reduce anything under a treaty if the non-treaty rate is 0%.
It's because they want to attract foreign deposits.
The only question if deposits with IBKR counts as a bank deposit (like a savings account - no tax anymore), or if it's dividend income from a bond or something like that (in that case there is still US tax).

Read it here directly from the IRS:
https://www.irs.gov/individuals/int...rest-income-for-nonresident-alien-individuals