Asalam Alaikum,
DEGIRO states that currently, all uninvested funds in a clients’ account balance are automatically invested into Money Market Funds (MMF). In a previous post on this forum, it was mentioned that MMFs are not permissible, however DEGIRO states that the MMFs currently have a negative interest rate and that they will compensate any loss up to 2500 EUR. Is it okay to invest with DEGIRO in that case?
DEGIRO also say that they are currently moving all clients over to a bank based in Germany that will hold your DEGIRO cash balance in a cash account with them in your name (with its own IBAN). That cash balance is also subject to interest (also negative at the moment) and DEGIRO also compensates for that from what I see. Is this scenario permissible?
Unfortunately, where I live, there are no ISA accounts and Trading 212 lends out my securities, so I can’t go with them. Degiro has a ‘custody’ account option.