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Bitpanda offers to shift customer deposits to money market funds

Source: Bitpanda

Austrian fintech unicorn Bitpanda has launched Bitpanda Cash Plus, a new feature that offers investors industry leading yields on their cash deposits.

From today, users can choose to have their EUR, USD, or GBP deposits automatically invested into money market funds. The product has been launched to give people an alternative to the low interest rates available on traditional savings accounts, and a simple way to generate returns.

Eric Demuth, CEO of Bitpanda, commented: “We have been frustrated by the low interest offerings in Europe for several months. With central bank rates rising and barely any of that increase being passed on to investors, we decided to find a way to make money market funds available to everyone. We believe we have built the best product available on the market, because it combines market leading returns with low volatility, 24/7 availability, no minimum deposit, no lock ins, and no hidden fees. Ultimately we’ve built a product that we want to use ourselves and which is superior to all offerings out there.”

Money Market Funds, traditionally gated behind high deposit requirements, are trusted by banks and large corporations to keep their money safe and accessible, and balance high returns on cash with low risk. Until recently these funds have only been available to large institutional investors but, by making them available with no lock in period and no minimum deposit, Bitpanda will give retail investors a new way to generate high returns on their cash.

Yields will track the current central bank interest rate and vary based on currency. Changes in central bank interest rates lead to an adjustment of the return (European Central Bank interest rate for EUR money market fund, the Federal Reserve interest rate for USD money market fund, Bank of England interest rate for GBP money market fund). Net annual returns - after all fees - will start from 2.5 % for EUR, 4.1% for USD, and 3.5% for GBP for all Bitpanda users. Depending on their VIP level Bitpanda’s BEST community members can benefit from even higher net yields of up to 2.82% for EUR, 4.64% for USD and 4.0% for GBP. The offering is built on BlackRock’s ICS Euro, US Dollar and Sterling Liquidity Funds.

Bitpanda users will be able to toggle Bitpanda Cash Plus on or off via the Bitpanda app to start earning returns. When toggled, users will earn yield on a daily basis offering maximum flexibility. This will be paid out in the form of a monthly fund distribution for any yield earned. Funds will remain available 24/7 and be instantly available to invest in any of Bitpanda’s extensive range of digital assets and products in just a few clicks.

A complete range of investment features to suit different strategies

With this most recent launch Bitpanda has extended its offering to provide the full range of investment opportunities to support all trading strategies. While Bitpanda Cash Plus offers returns suited to long-term investors, Bitpanda Leverage specifically addresses short-term trading strategies. Our extensive crypto coin offering and our superior staking further allow our users to customise their investment strategies.

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