The Best Cash ISA...What's The Catch?

Trading 212 appears to have released the best cash ISA on the market - but what makes it look so good on the surface? And is there a catch? Is your money safe? We explored everything you need to know
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🕧 Timestamps:
0:00 The best cash ISA?
0:22 Pros, cons and comparisons
4:47 How to open a Trading 212 cash ISA
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[@gothenburg83]

Chip CashISA seemed game changing but this is next level.

[@NightElff88]

Exactly what I was thinking! They are smashing it

[@Jcshh]

This is an absolute no brainer, the fact I can manage my portfolio whilst also having such a good interest rate in the same place is a win win

[@LawrenceTimme]

I think the main problem is having your cash is a and stocks and shares is a with the same provider. Its going to be pretty easy to go over the £85,000 compensation limit if youve been saving and investing for 5-10 years already. Great for new people though.

[@user-si7fj5rh5u]

They likely don’t count as ‘212’ - you’d have to check who 212 bank with, you might already be over the limit.

[@JS-cu8bz]

Can you move investments from the stocks and shares isa to the cash isa without penalties?

[@FinancialInterestcom]

Yes, it’s flexible

[@ridewithjamie]

Yeah I have also been trying to find the catch… and I can’t!

[@FinancialInterestcom]

my only real "drawback" thought is: how are they giving such a good rate when the existing option at the same rate required opting in to QMMFs 🤔

[@ridewithjamie]

@@FinancialInterestcom I haven’t got a clue! 😂

[@davidseymour6246]

@FI The best explanation I have seen is that they are drawing people in with the hope that they will then be tempted over to the trading CFD side of things which is very profitable. So the Cash ISA is effectively being underwritten by the marketing budget. It does seem a safe account at first look, but once they have sucked everyone in and then slashed the rate (as it is variable), you then have the hassle of transferring your ISA to a different provider within its first year…and of course by then ISA rates elsewhere will have fallen. Difficult decisions!

[@FinancialInterestcom]

@@davidseymour6246 sucking people in and slashing the rate is the strategy every bank uses though right 😅