Trade Republic, a well-known European investment platform, has introduced a new debit card offering a 1% cashback feature. This innovative card allows users to save a portion of their spending automatically.
But does this card deliver on its promises? Let’s explore its features, benefits, potential drawbacks, and more!
How does the Trade Republic Saveback work?
The principle is simple: 1% of the transaction amount is credited back to your account each time you use your Trade Republic card. This cashback is automatically invested into a savings plan of your choice, seamlessly combining spending with investing.
To start earning the Trade Republic 1% Saveback, you need to activate the feature within the Trade Republic app and set up a €50 savings plan for the next month. You must invest at least €50 in savings plans per calendar month for continued benefits. It’s important to note that Saveback can only be earned up to a maximum of €15 per month, which equates to a spending limit of €1,500 per month.
Note: Saveback is not earned on transfers (e.g., to another PayPal account), ATM withdrawals, investments, top-ups, and PayPal transactions. Gambling and quasi-cash transactions (e.g., buying casino chips, cryptocurrency) are also excluded.
Key features and benefits
- 1% Saveback on your daily purchases: This card’s standout feature offers 1% cashback, which is automatically added to a savings plan of your choice, providing a consistent way to grow your investments while you make daily purchases;
- No subscription fees: The card is free, with no monthly or annual charges;
- Free >100€ ATM withdrawals: Unlimited free withdrawals worldwide, with a minimum withdrawal amount of €100 for free commission;
- Integration with Trade Republic app: Manage your spending, track your Saveback progress, and adjust your investment choices seamlessly within the app.
How to activate Trade Republic Saveback?
Activating Saveback on your Trade Republic card is a straightforward process. Here’s a step-by-step guide to help you get started:
a) Navigate to the Card tab: Go to the “Card” section within the app.
b) Access “Settings and security”: Scroll down and select “Settings & security”.
c) Select Saveback: Under the “Benefits” section, choose the “Saveback” option.
d) Choose a Savings Plan: To activate Saveback, you must have at least one savings plan set up. If you don’t have one, you will be prompted to create it on the list provided by Trade Republic’s “Top saving plans.” For demonstration purposes, we selected the “Core MSCI World ETF USD (Acc).”
e) Set up your Savings Plan: The first time you activate Saveback, set up a €50 savings plan for the next month. To keep receiving Saveback, invest at least €50 in savings plans each calendar month.
How to activate Round Up?
Trade Republic has introduced another beneficial feature for its new debit card: Round Up. This feature allows you to automatically invest your spare change every time you purchase with your card. Here’s how it works and how you can activate it:
How it works
For example, if you set your multiplier at 3x and purchase a book that costs €7.50, the app rounds up your purchase to €8.00. It takes the €0.50 difference, multiplies it by 3, and deducts €1.50 from your balance account as Round Up. The accumulated Round Up amount is then invested weekly.
Activation steps
Now that you understand what Round Up is, follow these steps to activate the feature:
a) Initial steps: The first two steps for activating Round Up are the same as those for activating Saveback, which are described earlier in the guide. To recap briefly, select the card tab and then go to settings and security.
b) Select Round Up: Under the ‘Benefits’ section, choose the ‘Round Up’ option.
c) Choose a stock or ETF: Select one stock or ETF in which you will invest your spare change. We chose Microsoft ($MSFT) for demonstration purposes, but you can search for other stocks or ETFs in the search bar based on your preference.
d) Set a multiplier (optional): You can multiply your spare change by 2x, 3x, 5x, or 10x.
e) Activate Round Up: Finalize your choices and tap “Activate” to confirm.
Types of cards available
Trade Republic offers three types of cards:
- Virtual card: Free;
- Classic card: €5 one-time payment;
- Mirror card: €50 one-time payment.
The initial cost of the physical cards is a one-time payment deducted when you place your card order. This fee might need to be paid again when you request a renewal or replacement of your card. Shipping is free for both physical cards.
Are there any drawbacks?
While the Saveback is undoubtedly attractive, there are a few considerations for you to keep in mind:
- Maximum Saveback: The maximum Saveback you can earn monthly is capped at €15. This means that once you’ve spent €1,500 a month, you won’t earn any additional Saveback;
- Minimum Savings Plan requirement: Saveback only works if you have at least €50 per month in combined savings plans, which must be activated at least once. This condition is clearly outlined in their Saveback rules;
- Limited investment options: The Saveback can only be invested in Trade Republic’s savings plans, which may not offer the same breadth of options as other investment platforms;
- <100€ ATM withdrawals: For ATM withdrawals worldwide that are less than €100, a fee of €1 applies.
Where can I use the card?
The Trade Republic card offers flexibility and works wherever Visa cards are accepted. You can use it to browse online shops, make purchases in-store, or access cash from ATMs worldwide.
With every transaction or withdrawal, you’ll receive immediate confirmation via push notification, keeping you informed and in control. In the unlikely event of a declined transaction or withdrawal, the app provides clear explanations, eliminating confusion. The app conveniently displays the applicable exchange rate upfront for international transactions, promoting transparency and informed financial decisions.
How is my money protected?
Your money is protected in several ways with the Trade Republic:
- Distribution among partner banks: Your cash deposits are distributed among partner banks such as Deutsche Bank, HSBC, and J.P. Morgan, each providing protection for your deposits up to €100,000 per account;
- Diversification into liquidity funds: For balances above €100,000, excess funds are diversified into liquidity funds, provided you have activated your Trade Republic IBAN. These funds are held in segregated custody accounts, keeping them separate from Trade Republic’s corporate assets;
- Segregation of assets: Trade Republic segregates your assets from its own, ensuring that your money remains secure even if the Trade Republic faces bankruptcy.
For more information on how your money is protected, check the Depositor Information Sheets on Trade Republic’s website.
Is Trade Republic Cashback available in my country?
Trade Republic’s debit card is currently available for customers in all 17 European countries where Trade Republic operates. These include Austria, Belgium, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Portugal, Slovakia, Slovenia, and Spain.
As outlined in its press release, the company officially opened access to the card to all customers in May 2024.
Trade Republic Interest on Uninvested Cash
To learn more about Trade Republic’s interest offering on uninvested cash, including rates, how it works, and how to activate it, check out our article, where we break down everything you need to know!
Bottom line
In summary, while the Trade Republic Saveback card isn’t designed for high spenders due to its €15 cashback cap, it offers a straightforward and low-cost way to merge your spending and investing habits. This card represents a novel approach to combining everyday spending with automated investing, but it’s essential to understand its limitations and requirements.
The maximum Saveback benefit is capped at €15 per month, which may not appeal to high-spenders seeking greater rewards. Additionally, Saveback funds are funnelled exclusively into Trade Republic’s savings plans, potentially limiting investment flexibility. A €1 fee applies for ATM withdrawals under €100 worldwide.
On the positive side, the card has no subscription fees, offers free ATM withdrawals for larger amounts, and integrates seamlessly with the Trade Republic app. The 1% cashback and the added Round Up feature make it an excellent option for passive savings growth.
The card’s suitability depends on your financial goals and preferences. If you value convenience and passive savings growth, the Trade Republic card could be a valuable addition to your financial toolkit. However, it’s crucial to weigh the benefits against the limitations and explore alternative options if they better align with your needs.
We hope this article has clarified the benefits and features of Trade Republic’s new debit card and Saveback feature.
Best of luck with your investments!
