As we move ahead with Vivid Money S.A. we're implementing some changes for your Invest and/or Interest Rate pockets. To continue using these services, you’ll have to agree to the updated Client Agreement, which includes the following:
Your Invest and Interest Rate pockets will have a new cash section, where you can store the funds you wish to invest with.
Instead of investing from your Money Pockets directly, you’ll need to add the desired funds to the Invest and/or Interest Rate pockets first. You can then invest such funds right away or hold them in your pockets for future investments.
These cash sections within the pockets are called “Available cash” in Invest, and “Cash with fixed interest” in Interest Rate.
When selling your assets, whether these be stocks or Money Market Funds (MMFs), the proceeds received from the sale will be credited to the cash section of the respective pocket. You can use the funds in the cash sections to buy assets again at any time.
It is also important to highlight that you’ll be able to transfer the funds from the cash pocket to any preferred Money Pocket, at any given time.
That said, holding funds in your Interest Rate Pocket provides you with an annual fixed interest rate, accruing daily, of 4% if you’re a Prime customer and of 2% if you’re a Standard customer. Interest rates are subject to prevailing market circumstances. Regardless of whether you’re a Standard or Prime customer, sometimes, the fixed rate is increased to 5% per annum for promotional offers during limited periods of time. Take a look at our promo rates article to learn more!
Instant settlement facilitation for buy orders and immediate cash settlement for sell orders, whenever possible. While Vivid can act as a bridge to facilitate instant settlements and will try on a best efforts basis to do so, it may take up to two business days for buy orders to reflect the receipt of your financial instrument, and for sell orders to reflect the proceeds in your pockets’ cash sections.
Funds held unused in your Invest and Interest Rate pockets might be invested in qualifying money market funds (QMMFs), to adhere to Dutch asset segregation regulations. Rest assured, you’re not affected by this in any way: your funds held in these pockets remain always available for you to invest or cash out.
Annual service fees for Interest Rate Pocket. When you migrate to Vivid 2.0, your first month will be fee-free. After the first month, commissions will follow a simple structure: we apply a 0.3% annual service fee for Prime customers, and 1% for Standard customers. Such a fee is calculated daily on the balance invested in MMFs in the Interest Rate Pocket, and it's only deducted when you sell the funds.
What happens if I do not migrate to Vivid 2.0?
Migrating to Vivid 2.0 won’t cause any harm, as all of the services and your funds will be immediately available for you in your pockets. However, if you don’t complete the migration before the 14th June 2024, you won’t be able to place buy orders in Invest or add funds in Interest Rate.
If you don’t intend to migrate to Vivid 2.0, you’ll have until 20th June 2024 to sell your assets in Invest and withdraw your funds from the Interest Rate pocket. When the stock exchange market closes on this date, you won’t be able to close your positions anymore and, therefore, we’ll liquidate the remaining assets manually by the end of 21th June 2024. The proceeds of such liquidation will be transferred to your Money Pocket once they have been received by Vivid Money BV. Please note that the liquidation process will incur the regular fees set by your plan.
For more information, check out this article for Invest, and this one for Interest Rate.