The New Trading 212 Debit Card - Should I Get it?

Summary

The video discusses the launch of a new debit card by the investment app Trading 212, which offers a high-interest rate on cash balances, 0.5% cash back on spending up to £20 a month, and a competitive 0.15% fee on foreign currency transactions in 13 currencies. The card has no monthly charges, making it an attractive option for everyday spending and travel. However, there are minor fees for excessive cash withdrawals and for a physical card replacement. The presenter, who is on the waitlist, plans to use the card for its cash benefits and low FX fees during international travel, and suggests viewers consider the card based on their spending habits and travel needs.

Takeaways

• 📈 The trading 212 app has announced the launch of a debit card offering a high level of interest on cash in the account, making it competitive with easy access current accounts.
• 💳 The debit card provides 0.5% cash back on spending, up to a total of £20 a month, which requires a monthly spending of £4,000 to reach the limit.
• 🌐 There's a 0.15% fee on the true interbank rate for foreign currency transactions, which is very competitive and applies to 13 currencies, including Canadian dollars.
• 🆓 No monthly charges for owning the card, which is a significant advantage over cards with monthly fees.
• 👍 Positive community response to the card, with some considering it as a potential replacement for their current cards, like the Revolut card.
• 🚫 Potential downsides include a 1% fee for cash withdrawals over £100 per month and a £5.85 fee for a physical card, although these are not common occurrences for most users.
• 💰 A daily spending limit of £99,000 may not impact most users, but could be a consideration for high-volume spenders.
• 🛍️ The card is suitable for everyday spending, offering cash back rewards and savings on a variety of expenses.
• ✈️ Ideal for travelers with its low FX fee, making it a cost-effective choice for spending abroad without rate markups or weekend fees.
• 💭 The speaker is on the waitlist for the card and plans to use it for its cash interest rate and for spending abroad, but it won't replace their preferred credit card for everyday use.
• 🤔 Whether one should get the card depends on personal circumstances, but the card offers a compelling set of features for those looking to maximize rewards and savings.

Q & A

What is the main topic discussed in the video?

The video discusses the launch of a new debit card by the investment app Trading 212, including its features, benefits, and potential use cases.

When did Trading 212 announce the launch of their debit card?

Trading 212 announced the launch of their debit card in February, with plans to launch it by the end of March.

What is the promotional code provided for new account holders?

The promotional code provided for new account holders is 'div XP' or 'divv exp', which stands for the dividend experiment.

What is the benefit of using the promotional code?

Using the promotional code 'div XP' or 'divv exp' allows new account holders to receive shares worth up to £100 within 10 days of opening their account.

What is the interest rate paid on cash in the Trading 212 debit card account?

The debit card offers a high level of interest on cash in the account, which is currently 0.5%, but this rate is subject to change depending on the Bank of England rate.

What is the cash back reward offered on spending with the Trading 212 debit card?

The card offers 0.5% cash back on spending, up to a total of £20 per month, which requires a monthly spending of £4,000.

What is the foreign exchange fee for transactions in 13 currencies using the Trading 212 debit card?

The debit card has a very competitive foreign exchange fee of 0.15% for transactions in 13 currencies.

Are there any monthly charges for owning the Trading 212 debit card?

No, there are no monthly charges for owning the Trading 212 debit card, which is a relief for many potential users.

What is the daily limit for transactions using the Trading 212 debit card?

The daily limit for transactions using the Trading 212 debit card is £99,000, which is unlikely to negatively impact most users.

What are the two main use cases for the Trading 212 debit card as discussed in the video?

The two main use cases for the Trading 212 debit card are for everyday spending and travel, offering cash back rewards and low foreign exchange fees respectively.

What is the narrator's personal stance on getting the Trading 212 debit card?

The narrator is planning to get the Trading 212 debit card, finding it useful for travel and taking advantage of the 5.2% rate on cash, despite not expecting it to replace their current credit card for everyday spending.

What additional offer is the narrator providing to viewers of the video?

The narrator is offering a free PDF Guide to the 10 Dividend Investing Commandments to viewers who submit their email through the provided link.