In the inbestMe Savings Portfolio, returns are accumulated.
The money market funds (or money ETFs, depending on the type of account) that we use in savings accounts accumulate the performance in the daily net asset value*. No interest is paid.
As long as ECB or FED interest rates remain above 0.5%, the variable IRR we report for the accounts would be positive. Should interest rates fall below 0.5%, the variable IRR could be zero or become negative.
The inbestMe Investment Committee monitors the performance of the assets used in the accounts on a weekly basis. In addition, it monitors the monetary policy of the ECB and the Fed. In a scenario of a return to near-zero (or negative) rates, we would keep our Clients informed of the possibility that they may no longer be interested in holding this type of account.
Individuals resident in Spain who have an inbestMe Savings Account in € with money market funds can, for example, transfer their positions to another type of portfolio. In this way, they benefit from the existing tax deferral on transfers between funds.
In the case of a Savings Portfolio with ETFs, the Client should order a full withdrawal if he/she is no longer interested in maintaining the account.
* Screenshot of an inbestMe Savings Portfolio. The line indicates the accumulating profitability (the small drops that can be seen correspond to the moments when commissions are deducted). The reported variable IRR already takes into account all the associated costs:
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Note: ECB stands for the European Central Bank. FED is the Federal Reserve in the USA. Both institutions, which determine the different official rates, in turn determine the interest rates in their respective currencies: Euro for the ECB, dollar for the FED.
The Investment Committee has designed a portfolio of money market funds (or ETFs) to optimize the return obtained on the account, assuming minimal volatility. This portfolio is monitored to automatically translate the evolution of the official rates (ECB and FED) into the reported variable APR. We will permanently notify you of any changes.