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Trading212 Cash ISA at 5.2%
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Isaac J
Posted: 31 May 2024 16:30:14(UTC)
#1

Joined: 25/05/2022(UTC)
Posts: 299
In case anyone is interested, it seems Trading212 have launched a Cash ISA with 5.2% AER. Interest is paid daily for some reason - not sure what difference it makes to have it paid daily so maybe a bit gimmicky, but nevertheless at 5.2% might be the best it's gonna get for now if the BoE start cutting rates this year.

Could be useful if you don't want to lose your ISA allowance but don't want to invest it yet; and can still transfer to an S&S ISA later if need be.

https://www.trading212.com/isa?cash-isa

I'm personally sticking with my building society Cash ISA at 5.1% so I can't offer any info on what the Trading212 account is like.
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MBA MBA
Posted: 31 May 2024 20:34:31(UTC)
#2

Joined: 16/12/2012(UTC)
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I think this is a MMF
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Thrugelmir on 31/05/2024(UTC)
Thrugelmir
Posted: 31 May 2024 21:32:42(UTC)
#3

Joined: 01/06/2012(UTC)
Posts: 5,331
A way of meeting FCA requirements on customer cash deposits. What is T212’s fee structure now?
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Nigel G
Posted: 31 May 2024 23:00:04(UTC)
#4

Joined: 03/07/2014(UTC)
Posts: 442
Trading 212 wrote:
How does Trading 212 hold my cash to earn this interest?

As we’re not a bank, we use a mixture of products and vehicles such as qualifying money market funds, time deposits, and current accounts. This is why it’s mandatory to accept QMMFs to receive interest.

You can see how your cash is held at any time from your interest on cash dashboard. This data’s updated once per day at midnight and is based on your settled cash balance.
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Isaac J
Posted: 01 June 2024 07:30:44(UTC)
#5

Joined: 25/05/2022(UTC)
Posts: 299
The QMMFs refer to cash in their other accounts.

This new Cash ISA has to be held in cash for the FSCS protection. Barclays, NatWest and JPMorgan are the depository banks (the way HL use Coventry). If you have a high amount of cash with any of those banks, then it might be problematic re: exceeding the £85,000 FSCS protection.

This is Money article
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Raj K on 01/06/2024(UTC), Guest on 01/06/2024(UTC), Nigel G on 01/06/2024(UTC)
Raj K
Posted: 01 June 2024 07:46:15(UTC)
#6

Joined: 22/04/2016(UTC)
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I believe the T212 Cash ISA is also flexible - can withdraw and reinvest without affecting your allowance

Aslo if one holds their T212 Stocks and Shares ISA you can transfer quickly.
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Isaac J on 01/06/2024(UTC)
Busy doing nothing
Posted: 01 June 2024 07:55:24(UTC)
#7

Joined: 01/03/2021(UTC)
Posts: 376
Do they mean interest is accrued daily?
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