DEGIRO Updated its Cash Funds Structure

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DEGIRO updated its cash funds Structure Logo

DEGIRO just updated a few things about the cash you hold in your account.

Since Netherlands investment firms are not permitted to hold cash, Degiro invest the cash from your account in a money market fund. There is a separate money market fund for each currency that you can hold with Degiro. Money market funds are principally investing in government bonds, with very high quality. However, the interest rates are very low and even negative for many European countries. Therefore, some money market funds, such as the EUR or CHF cash funds, have a negative interest rate.

Until now, DEGIRO was compensating for the negative interest rate, as well as the fund management fee (0.09%), directly into the fund. Due to a new legislation in 2018, this is not possible anymore. However, it will still compensate you by reimbursing you this money. So you’ll see this compensation has a credit on your account. In the case of positive interest rate, nothing will change, your cash fund will show this. In the end, there won’t be any change in returns. It is only a change on how the compensation is made to your account.

Linked to this, you’ll also positions for your foreign currencies in the portfolio instead of seeing them only in your Cash Fund Overview. And they will improve these views to show more information related to currency exchange.

For me, this won’t change a lot since I don’t hold foreign currencies in DEGIRO. Moreover, until now I only held CHF for a very short time (less than a day) before I used it. Maybe this will change in the future. But I don’t think I will store money in my broker account any time soon.

I’m glad they are very transparent about this new information. I’m also glad they are compensating for the negative interest rates. Even if they may not do it forever.

What do you think about this update ?

If you want some information about DEGIRO, you can read my extensive review of DEGIRO. If you want more information, you can also consult the official Cash fund information from DEGIRO.

Author: Mr. The Poor Swiss

Mr. The Poor Swiss is the main author behind In 2017, he realized that he was spending more and more every year, falling into the trap of lifestyle inflation. He decided to cut on his expenses and increase his income. This blog is relating his story and findings. In 2018, he saved more than 40% of his income. He made it a goal to reach Financial Independence. You can send Mr. The Poor Swiss a message here.

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