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.

Outlines

00:00

💳 Introduction to Trading 212 Debit Card

The video introduces a new debit card launched by the investment app Trading 212, set to be released at the end of March. Viewers on the waitlist might receive an invitation to get the card as the video is released. The card offers a high level of interest on cash in the account, competitive cash back on spending, and low fees on foreign currency transactions. There are no monthly charges, making it an attractive option. The video also mentions a promo code 'divXP' or 'divvExp' for new account holders, which can be used to receive shares worth up to £100. The content is for informational and educational purposes and should not be considered as investment advice.

05:01

🌐 Trading 212 Debit Card Features and Use Cases

The second paragraph delves into the features of the Trading 212 debit card, highlighting its appeal for both everyday spending and travel. The card offers 0.5% cash back on transactions, up to a £20 monthly limit, and a 0.15% fee on foreign currency transactions across 13 currencies. There are no hidden monthly charges, but there are minor fees for cash withdrawals over a certain amount and for obtaining a physical card. The daily spending limit is set at £99,000. The use cases discussed include using the card for daily expenses to earn cash back and for travel to save on currency exchange fees. The host of the video is considering getting the card for its benefits, particularly for travel, and is open to audience opinions on whether they should get the card. The video concludes with a free offer of a PDF guide on dividend investing for viewers who join the email list.

Keywords

💡Investment app

An investment app is a software application that allows users to manage their investments, typically in stocks, bonds, or other financial instruments, through a user-friendly interface. In the video, the investment app 'trading 212' is mentioned as undergoing significant changes with the launch of a new debit card feature, which is a key focus of the discussion.

💡Debit card

A debit card is a type of plastic payment card that allows users to make electronic payments directly from their bank account. The video discusses the introduction of a debit card by the trading 212 app, which offers various benefits such as cash back, low foreign exchange fees, and no monthly charges.

💡Interest rate

The interest rate is a percentage of an amount paid for the use of money. In the context of the video, the trading 212 debit card offers a high level of interest on cash in the account, which is competitive compared to easy access current accounts. The rate is subject to change based on the Bank of England rate.

💡Cash back

Cash back refers to a type of reward where a portion of the money spent on a purchase is returned to the buyer, typically by a credit or debit card provider. The video highlights that the trading 212 debit card offers 0.5% cash back on spending, up to a monthly limit, which is an appealing feature for users.

💡Foreign exchange (FX) fee

The FX fee is a charge applied by financial institutions for exchanging one currency for another, often when using a payment card abroad. The video emphasizes the trading 212 debit card's low FX fee of 0.15% on 13 currencies, making it a competitive option for foreign transactions.

💡Monthly charges

Monthly charges are recurring fees that a customer must pay to maintain a service, such as a bank account or a credit card. The video mentions that there are no monthly charges for owning the trading 212 debit card, which is seen as a positive aspect of the card's offering.

💡Wait list

A wait list is a queue of people waiting for an opportunity or a product, such as an invitation to obtain a new debit card. In the script, it's mentioned that some users are on the wait list for the trading 212 debit card, indicating high demand and anticipation.

💡Promo code

A promo code is a sequence of characters that, when entered during a transaction, grants the user a discount or other benefits. The video includes a unique promo code 'div XP' or 'divv exp' provided by trading 212, which users can input to receive shares worth up to £100 when opening a new account.

💡Sponsor

To sponsor means to support or finance an event, activity, or individual, often in exchange for advertising or promotional benefits. In the video, trading 212 is mentioned as the sponsor of the channel, which implies that they have provided financial support in some capacity.

💡Daily limit

A daily limit is the maximum amount of money that can be spent or withdrawn within a single day. The video states that the trading 212 debit card has a daily limit of £99,000, which is unlikely to be a constraint for most users but could be a consideration for high-volume spenders.

💡Travel

Travel refers to the act of moving from one place to another, typically for leisure, business, or migration. The video discusses the benefits of the trading 212 debit card for travelers, including low FX fees and no additional charges, making it an ideal choice for international adventures.

💡Dividend experiment

The dividend experiment appears to be the name of the channel or a specific investment strategy discussed in the video. It is mentioned in the context of providing a unique promo code and offering a PDF guide on dividend investing principles, suggesting a focus on dividend-paying stocks as part of the channel's content.

Highlights

Investment app Trading 212 announced the launch of a debit card in February.

The debit card offers a high level of interest on cash in the account.

The interest rate is subject to change based on the Bank of England rate.

Provides 0.5% cash back on spending, up to £20 a month.

There is a 0.15% fee on the true interbank rate for 13 currencies.

No monthly charges for owning the card.

The card is being marketed as a potential 'Revolut killer'.

There are fees for withdrawing large amounts of cash monthly.

A physical card costs £5.85, covering manufacturing and shipping.

There is a £99,000 daily limit on the card.

The card is suitable for everyday spending with cash back rewards.

The card is ideal for travelers with a low FX fee of 0.15%.

The speaker plans to get the card for its cash interest and travel benefits.

The card may not replace the speaker's current credit card for everyday spending.

The speaker will use the card for its high cash interest rate and foreign travel.

The speaker is giving away a PDF guide on dividend investing.

Transcripts

in one of the biggest shakeups to the

Investment app trading 212 in recent

times they've announced in February that

they'll be launching a debit card at the

end of March if you were on the wait

list you could even be receiving your

invite to get your card as this video

comes out so what's the deal with this

card and should I get one in this video

we'll cover what we know so far about

the card The Good the Bad and the Ugly

and finally I will give some use cases

and let you know whether I'll will be

getting the trading 22 debit card hello

and welcome back to the dividend

experiment the channel that helps you a

portfolio that pays your bills the

content that we discussed is intended

for information and educational purposes

only and should not be considered

investment advice or investment

recommendation so what do we know about

the card so far if you have the app

already you should see a new cool little

tab at the bottom menu that looks like a

little minimalist card if you don't have

the app already then I asked trading 2

on2 if they could give me a unique code

that you guys can simply type into the

promo code section Capital At Risk so if

you've opened a new account recently or

planning to open an account then here it

is div XP or divv exp short for the

dividend experiment so you have 10 days

from opening your account to type this

in and receive shares worth up to £100 I

also get something as this is my custom

code so this helps you support the

channel too so thanks to you if you do

use this code and thanks to training 22

for sponsoring the channel but anyway

back on that little card tap on that and

it should bring up the details that

currently look like this so the features

we can see here are that this debit card

has a very high level level of interest

paid on cash on your account comparing

this to an easy access current account

and it might well be one of the most

competitive out there of course the

interest rate is subject to change

depending on the bank of England rate

but it is quite an appealing amount of

Interest 0.5% cash back on your spending

so for example if you buy your groceries

and spend 00 you get 50 P back the total

is limited to20 a month but that would

require a monthly spending of £4,000 a

month anyway I don't know how much you

spend per month but for me I won't be

reaching that 20 for sure the 0.15% f

fee on the true interbank rate and this

is on 13 currencies this is again very

competitive for foreign currency

transactions much better rate than any

cards I own currently if you're

wondering what the currencies are you

can see them on this graphic here and on

top of that Canadian dollars finally the

last box as you can see is that there

are no monthly charges for owning the

card which is a bit of a relief as the

monthly charge could be a deal breaker

for a lot of us so this all looks pretty

compelling as a card option I asked on

the social Community if anyone was

thinking of getting the card some

responses were that they never even

heard of this card yet and that my post

was the first time that they had heard

of it some responses were they're

already happy with the card they

currently using typically this was the

case if they're using a credit card with

rewards other responses were saying that

they're on the wait list and patiently

waiting for the invites to be sent out

overall the response seems to be

positive and thus understandable is the

offering here on the card no monthly

fees low transaction fees on Foreign

Exchange transactions and high levels of

interest when you don't spend some

comments were saying saying that they

might replace their revolute card and

others I saw online tting as a revolute

killer not my own words revolute don't

close my bank account but are there any

downsides to the card so there are no

fees for monthly holding but there are

fees that you might not realize but

you'd have to be using the card in a

very unusual way to experience it at the

bottom of the card landing page it says

this and we see here that if you're

withdrawing hundreds of pounds a month

as cash then you can run into a bit of a

difficulty with the 1% fee but as I said

I think you wouldn't be likely to

encounter this kind of issue on a

regular basis or maybe I just withdraw

cash at a much lower rate than the

average person and the only other cost I

could see listed was that it'll cost

£585 if you want a physical card which

ostensibly covers the manufacturing in

shipping which seems quite reasonable as

you can still use the virtual card on

your phone or however you prefer to pay

this will obviously run up quite a

significant Bill if you continually lose

your card and require a physical one but

again quite unusual behavior that

probably doesn't apply to most of us

finally the only other real restriction

that I can see is the £99,000 daily

limit which again I don't think will

negatively impact us too much I

personally haven't ever spent £99,000 in

a single day or 54,000 in a month on a

card but who knows maybe this is a deal

breaker for

you what are the use cases the two main

use cases I can think of for this card

and its Market proposition for everyday

spending and travel so everyday spending

the trading to 212 debit card offers a

convenient solution for everyday

spending allowing users to earn cash

back reward and save money on a variety

of expenses whether it's purchasing

groceries dining out commuting shopping

for Essentials or enjoying entertainment

users can earn 0.5% cash back on their

transactions which is effectively saving

on their purchases additionally the card

provides the opportunity to earn over 5%

on pounds further enhancing the benefits

of using it for daily expenses with its

versatile use across multiple categories

of spending the train 212 debit card

offers a simple yet effective way for

users to manage their finances while

maximizing rewards and savings travel

the trading212 debit card is an ideal

companion for travelers offering a low

FX fee of just

0.15% this feature allows users to save

significantly on currency exchange fees

when using the card abroad ensuring

costeffective spending during their

travels with no rate markup or weekend

fees users can enjoy hassle-free

transactions while exploring new

destinations whether it's booking accom

dining at local restaurants or indulging

in shopping sprs abroad the card

provides a seamless and cost-efficient

payment solution for travelers making it

valuable asset for international

Adventures should I get the trading 2

on2 card at the time of making this

video I'm still on the wait list and

definitely planning to get the card I

think with no monthly fee there's no

real downside to getting it unless you

truly don't think it'll be useful at all

for you it probably won't replace my

current credit card for everyday

spending for me I prefer spending on a

credit card for multiple reasons and the

car doesn't have quite enough to replace

that currently even with a 0.5% cash

back when traveling abroad to any of the

countries or using the supported

currencies I think this card will become

very useful and this is an easy win for

me over the credit card which charges

much more for me I will be getting this

card taking advantage of the 5.2% rate

on cash currently and then do some

spending abroad if and when I travel

should you get the card no idea that

depends on your own situation I've given

you the breakdown now but i' would love

to hear your thoughts in the comments if

you like this video and if you made it

this far I'm guessing you probably did

then I have some good news for you I'm

giving away my PDF Guide to the 10

dividend investing Commandments or the

criteria that I use to pick dividend

paying stocks and I'm giving it away to

you for free all you need to do is

submit your email in the link below and

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straight away again that's for free but

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share with you thanks for watching and I

hope to see you on the next video see

you