Bitpanda Cash Plus

Bitpanda Cash Plus puts your money to work, offering market-leading returns on your cash. It’s just one more way we’re simplifying wealth creation for our community, along with recently added products, including Bitpanda Staking, Bitpanda Spotlight and Bitpanda Leverage.

How does it work?

Simply activate the Cash Plus Program in your EUR, GBP or USD wallet on Bitpanda and your cash balance will automatically be moved to your Cash Plus balance on a daily basis.

Turn on the Bitpanda Cash Plus Program by simply following these steps:

  1. Open the Bitpanda App
  2. Click the toggle next to Join Cash Plus in your EUR, GBP or USD wallet

    bitpanda_cash_plus_en.png

  3. Complete our quick appropriateness test
  4. Accept the derivative contract by switching the toggle on and clicking on Turn on
  5. You can now deposit EUR, USD or GBP or use your cash balance to start earning a yield

If you deposit new cash to Bitpanda or sell any asset to your fiat wallet, that cash will also be added to your existing Cash Plus balance. This will happen every working day at the following times:

  • EUR: 10:00 CET
  • GBP: 10:00 CET
  • USD: 14:00 CET

How can I turn off Cash Plus?

Should you need some cash for trading again, simply move it out of your Cash Plus balance in your fiat wallet or directly during a trade at any time.  

The remaining cash will be automatically returned to your Cash Plus balance the next working day. To entirely opt out of the Cash Plus program, switch off the toggle in your fiat wallet: 

bitpanda_cash_plus_toggle.png

It won’t affect what you’ve already earned.

How the payout works/When will I receive my yield?

The payout is distributed monthly and based on the amount of money you had invested and the duration of investing.

Example:

  • The yield is changing and calculated every day. Let’s assume for simplification that the yield remains every day at 2,24%
  • You move €1000 into your Cash Plus balance on the 15th of April before the cut-off time until the 30th of April after the cut-off time. 
    • You are eligible to receive the total dividend for 15 days
  • Your dividend gets paid out on 4th working day of the following month 
  • Calculation: 
    • The dividend yield was for every day 2,24%
    • You were invested for 15 days
    • You receive 1000€ * ((0,0224 *15days) /365days) = 92 Cent

Your total earnings rewards and the next payout date are visible in your Cash balance overview in your Bitpanda wallet at all times. All past payouts can be found in your transaction history.

With Bitpanda Cash Plus, where is my money going exactly?

The return is generated by investing in a derivative contract in which the underlying asset is a money market fund. This type of fund is trusted by banks and large corporations to keep their money safe and accessible while giving them a return. Each month your return is calculated and paid out as a dividend, similar to a corporate action.

Bitpanda offers derivative contracts for EUR, GBP and USD in which a Money Market Fund is always the underlying.

The respective Money Market Funds we are utilising as underlyings for Bitpanda Cash Plus are listed below:

Name of fund Fund Mngmt. company Currency ISIN Rating
(S&P/Moody’s/Fitch)
BlackRock ICS Euro Liquidity Fund

BlackRock Asset Manage-
ment Ireland Limited
EUR IE000GWTNRJ7 AAAm/Aaa-mf/AAAmmf
BlackRock ICS US Dollar Liquidity Fund USD IE00B44BQ083 AAAm/Aaa-mf/AAAmmf
BlackRock ICS Sterling Liquidity Fund GBP IE00B3L10356 AAAm/Aaa-mf/AAAmmf

 

Understanding the risks 

Short-term money market funds - such as those used for Bitpanda Cash Plus -  have low volatility and the main driver for adjustments of the yield are changes in interest rates:

  • The European Central Bank interest rate for EUR money market fund
  • The Federal Reserve interest rate for USD money market fund
  • The Bank of England interest rate for GBP money market fund

It's important to understand that although Bitpanda Cash Plus money market funds are generally considered low-risk and have the highest possible ratings, returns from Bitpanda Cash Plus can still rise or fall and are subject to change. Further details about this product, the issuer and the relevant risks are available in the prospectus and in the investor information document.

FAQ

How is the yield generated?

The return is generated by investing in a derivative contract in which the underlying asset is a Money Market Fund. Each month your return is calculated and paid out as a dividend, similar to a corporate action.

What is a Money Market Fund?

A money market fund is a mutual fund that focuses on investing in low-risk securities with short-term maturities, including cash and cash equivalent securities. This type of fund is trusted by banks and large corporations to keep their money safe and accessible while giving them a return.

Bitpanda Cash Plus invests in these money market funds on your behalf, allowing you to invest your cash and generate returns higher than many traditional savings accounts, all while maintaining liquidity and safeguarding your capital.

What are the expected yields on each supported currency?

BEST VIP Level BEST VIP Bonus EUR yield USD yield GBP yield
5 +12.5% 3.33% 4.85% 4.63%
4 +10.0% 3.25% 4.74% 4.53%
3 +7.5% 3.18% 4.63% 4.42%
2 +5.0% 3.10% 4.52% 4.32%
1 +2.5% 3.03% 4.41% 4.22%
0   2.96% 4.31% 4.12%

*Variable yields as of July 12, 2024

 

Are there fees involved?
While there are no buy and sell fees, it's important to mention that we deduct a small fee from the yield earned before paying it out to customers. However, as a BEST VIP member, you enjoy reduced fees, further maximising your earning.

Please note that fees for depositing EUR, USD or GBP may be applied depending on the currency or payment method selected. For more information, please have a look here. Also, be aware that your bank may charge additional fees for foreign currency transfers.

Are received yields taxable events?

Yes. The regulatory framework for taxation differs from country to country. Please contact your personal tax advisor for further information about your individual situation.