Hey bunqers! 🌈
With the release of bunq Update 19 we launched Easy Investments - investing your savings in socially responsible assets made easy 🙌
In this FAQ you’ll be able to find all the information needed to navigate through the feature and learn more about how it all works. Let’s dive into it!
Who can use Easy investments?
Currently the feature is available for residents in the Netherlands, Germany, Belgium, France and Luxembourg,. Also due to Birdee’s acceptance policy, you won't be able to open an Easy Investment account if you're a minor, US taxpayer or if your nationality is mentioned below:
Bahamas, Belarus, Botswana, Cambodia, Crimea, Cuba, Ghana, Iran, North Korea, Pakistan, Panama, Sevastopol, South Sudan, Sudan, Syria, Trinidad, Tobago, Ukraine, Venezuela and Yemen
How are the portfolios constructed
Birdee’s experts have put those together with the help of specialists in this professional sphere. When you create your Easy Investment account, you’ll be asked several questions which will help you find which portfolio suits your investment objective and your risk profile the best.
What are the risks?
Like any financial investment, Birdee portfolios carry risks. The absolute preservation of your starting capital can’t be guaranteed.
Birdee monitors the performance of their portfolios on a daily basis and adjusts their composition to keep them in line with the objectives and risk profile you’ve chosen and to ensure the best return. 👀
What’s an investment objective?
Different objectives imply different risk tolerances and durations and the portfolio we recommend will take those into account. This way you’ll be able to invest with the most suitable portfolio for you.
How's the performance of my portfolios calculated?
Under your portfolios, you’ll see two key values : Earnings (€) and The yield (%)
To define the performance of its portfolios, Birdee uses the Time-Weighted Return method, which defines the relative performance of a portfolio. It means that the performance is net of the contributions and withdrawals that a user could make. Gains are the amounts of money earned compared to a starting bet.
How are Value and Performance calculated exactly?
The Value tab on the Investments account shows the current value of the portfolio including deposits, withdrawals and movements in the market.
The Performance tab shows the movements in the market.
- Example: On Monday you invest 1000€ (Value). On Tuesday, the markets have risen by 10% (Performance), so you have gained 100€ (profit) and your portfolio is now worth 1100€ (Value). You then add 2000€ in the evening and your portfolio is now worth 3100€. On Wednesday, the markets are down by 5%. Your portfolio is now worth 2945€. This translates into a net loss of 55€ on the 3000€ invested in total. However, the performance in % will be 4.5%, i.e. positive: (1+10%)*(1-5%)-1 = 4,5%
How long does it take for my money to be invested and visible in my Easy Investment account?
Once Sutor Bank (Birdee's partner) receives the funds, it places them in the corresponding ETFs and sends Birdee the information and we apply it in the app right away. This means it may take up to 4 business days before the payment appears in your account 💸
My Easy Investments account wasn’t approved. Why?
There are two main reasons why your investments account can be not approved by Birdee:
a) Your ID has expired:
When you create your bunq account, the ID must have been valid, but over time this document may have expired. In this case, you need to provide an updated ID so that you can get approved by Birdee. To do this, reach out to support. They can assist you further by activating an event for you to provide an updated ID in the app.
b) You’re a politically exposed person:
If you’re considered a politically exposed person, Birdee will request Income information so they can verify your account. You’ll be able to provide this information through the app by contacting the support team - from there, our team will forward your documents to Birdee and finish the verification.
A politically exposed person is someone who was entrusted with an important public function during the last year and has significant decision-making power.
This could be a chairman of a political party, or the chairman of a state owned corporation. Close family members of such a person are also considered politically exposed.
Do I need to provide a TIN?
If you’re from Estonia, Spain, Italy, Iceland, Malta or Poland - you need to provide an additional TIN as per Birdee’s requirement. If it’s needed, you’ll receive an error message and you’ll be able to contact our support to provide this info.
What if my returns drop?
No need to worry or panic! Financial markets are always rising or falling. Just like interest rates and prices for everything!
The important thing to know is that Birdee as our partner makes every effort to rebalance the composition of your portfolio whenever the market requires it 💪
Does money invested with Easy Investments count towards the Safekeeping fee?
No, all of your invested funds with this feature aren't counted towards your Safekeeping fee.
Can I close my account whenever I want?
Yes, you can, just follow these easy steps:
- Go to Easy Investments account
- Tap on ⚙️
- Tap Close Easy Investments Account
- Tap Proceed
In order to close the account the balance must be €0.00, meaning that no funds should be left in the account.
Can I cancel a deposit?
Indeed, you can cancel a pending deposit to Birdee - these are Auto Save deposits which haven't not reached the €10.00 minimum yet. All you need to do is to follow these steps:
- Go to Easy Investments account
- Tap the Pending Investments circle
- Tap the Deposit you want to cancel
- Tap Cancel Deposit
How long does it take to withdraw my funds?
When you make a withdrawal, you're selling part of your investments. To complete the sell order and get your money from the market, it may take up to 6 to 7 business days of processing time. Keep in mind that during the withdrawal, the value of your investment may change.
What are the tax implications for my portfolios?
Owning a securities account always has tax implications and the fiscal responsibility remains in your hands - it’s up to you to declare to the fiscal authorities all the elements related to the securities you hold.
However, in order to make it easier for you, we’ll send you a yearly summary of your earnings so that you can share them with your tax department right away 🚀
How long do investment deposits take to be processed?
The Easy Investments Beta has been incredibly successful!! Your support, feedback and enthusiasm have been overwhelming 👏
Due to this enormous success, it may take a bit longer than usual for your money to become visible in your Easy Investments account. Of course we’re working round the clock to solve this issue and we’ll update you the moment we fixed it!
Can I use Easy Investments with a business account?
No. Easy Investments is currently only possible for personal accounts.
Ready to invest?
Check how the Easy Investment feature works here 💸
More questions on how to invest?
Check out Birdee’s FAQ for more info.
Want to learn more?
Explore more bunq knowledge here 🌈