Trading 212 Cash ISA is here - earn 5.2%

Trading 212 has released it's Cash ISA, paying a very decent 5.2%. Here's what you need to know, and how it compares to its closest competitors
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W A T C H N E X T
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Trading 212 pays 5.2% interest - what's the catch?
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#Savings #ISAs #BestSavingsAccounts
TIMESTAMPS
00:00 Trading 212's Cash ISA - how it works
05:10 How it compares to Chip, Plum and others
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S U B S C R I B E / @becleverwithyourcash
N E W S L E T T E R - becleverwithyourcash.com/news...
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T W I T T E R - / andyclevercash
I N S T A G R A M - / andyclevercash
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B L O G - becleverwithyourcash.com
A B O U T A N D Y
Andy Webb is a money blogger and journalist. He runs the award-winning website Be Clever With Your Cash, hosts the Cash Chats podcast, presented Channel 5’s Shop Smart Save Money and writes every month for Reader's Digest. Andy also founded the community ukmoneybloggers.com.
DISCLAIMER
Content in these videos does not constitute regulated financial advice. Any offers mentioned were correct at the time of filming.

[@Zero-Investing]

5.2% interest and it's felxible, it's the best in the UK 💯 No competition.

[@belindalarmour5457]

If you update your Trading 212 app the cash ISA appears

[@Raven-Falco]

This isa is a no brainer right now. The interest is paid daily so every day with a 15k emergency fund in cash i am getting £2 paid daily to it. I have just reached 15k so i will start a stocks and shares isa now and use the £60 a month interest from my cash isa to drip feed into it as well as regular monthly payments

[@leah902]

Which ISA do you use? I'm confused as to chip or plum. Kindly assist me with some information

[@Raven-Falco]

Hi leah. I use this one that andy is talking about. I just opened it yesterday. Trading212 isa

[@MrsSun888]

Remember you can only open one type of ISA per financial year, if you just opened a cash ISA on trading 212 you can't open a stocks and shares ISA until after April next year

[@Raven-Falco]

@@leah902hi. the trading 212 cash isa which andy is talking about paying 5.2%

[@Raven-Falco]

@@MrsSun888hi. cash isa and stocks and shares isa can be opened in same year bit the 20k allowance has to be split between them

[@billB101]

212 runs on a browser too, it's not just mobile only.

[@robhingston]

correct

[@rmas66]

Really impressive app too!

[@sarankumar1816]

Thank you bro, please talk about Scottish friendly Cash ISA & Shepherds friendly ISA

[@user-hh6et4vn4k]

Thank you for this video, could you compare trading 212 to Chip ?

[@jackparkinson3029]

Nice one!

[@nibblesful]

can i use the cash isa as a higher interest general savings account - ps i cant put 20k in anyways does withdrawal only really effect my deposit cap?

[@aungphyonaing]

Does it mean if you want to play safer, put all uninvested cash in cash isa (you have FSCS protection) then take money out from there to stock and share isa to invest. (Bear in mind that it offers 1% cash back for stock and share isa currently, so you want to put 20 k to stock and share isa and take 200 bucks first. Then transfer to cash isa. Then to stock and share to invest in stock). 😅

[@user-si7fj5rh5u]

I have the button on the website, clicking it asks if I want to start, maybe it redirects tot he app but it seems online also? I didn't go through with it yet.

[@TheGrimDark]

Update the app and it will now show, just signed up 👌

[@vincentmcgarry3598]

How much money cash or cheque can i deposit into a Barclays current account per day please?

[@patelparth]

How to file tax return for cfd trading earnings ? Please suggest online platform

[@seantuaima]

What about the Investec 90 Day notice account paying 5.13% interest monthly and is paying 5.25% Annually.

[@esmeecampbell7396]

Slight misinformation there regarding FSCS. You ARE still covered if Trading 212 goes bust and you have money in as a QMMF as cash in the S&S ISA or if you hold shares because you aren't keeping that money in their bank account. FSCS doesn't cover you if the value of investments goes down but if you hold cash as QMMF in there, or shares, you'll still be entitled to ownership of the underlying asset, which would be either the shares or your cash returned from the QMMF at the value it was when T212 theoretically goes bust. Currently mine is allowing me access to the Cash ISA however I'm not using it because I use the S&S ISA.

[@deltaechomusicnh555]

Andy doesn't understand this, as he lacks knowledge when it comes to investing and how it works.

[@Raven-Falco]

@@deltaechomusicnh555 Agreed. Everyone has there specialitys. When it comes to cash i tend to follow andy webb and martin lewis. Anything to do with investing i ussually go to damien talks money and toby newbatt. And anything to do with pensions i use james shack and pete from meaningful money

[@Kellestial]

If it goes bust, when people gain access to their qmmfs and they sell them rapidly, wouldn’t that make the value of the qmmf go down dramatically causing you to lose money when u sell? (I’m new)

[@esmeecampbell7396]

@@Kellestial it's already highly unlikely to go bust because T212 actually makes a profit, unlike Freetrade or Chip or Plum, because it siphons money off people doing the crazy gambling on CFDs (which people should definitely avoid) that's how they stay profitable and offer the best accounts for people at the moment. They operate that more like Robinhood in America and it is people gambling on meme stocks and shitcoins and losing more than they put in that gives T212 some profit. Add to this that a QMMF is packaged with literally tens of thousands of different institutions all contributing including the national banks of countries and people like Goldman Sachs and J P Morgan. T212 collapsing would have a negligible impact on the value, and they even spread the money across multiple QMMF apparently so that would be further mitigated. Unless you get the entire currency majorly under performing due to a giant global economic crisis like 2007/2008 then you're pretty much fine. And if that happens then we're all buggered anyway and this would be the least bad bit 🤣

[@sang3Eta]

I'm pretty sure I read somewhere that Money Market Funds are not covered.

[@leonf1440]

Hi ive opened this ISA but im not earning any daily interest on it? Do i need to do something to change this?

[@grumblewoof4721]

5.2% is not bad but consider this first. I have a Vanguard Stocks and shares ISA that seems to have returned 15% this year (to date). Over several years this could be a lot less of course. It's all about risk. The normal 5.2% for cash that Trading 212 have would give you about £1000 per year interest for £20,000 but over that you will have to declare it and pay tax. The Trading 212 cash ISA looks much better for all reasons.

[@esmeecampbell7396]

You'd only pay tax for the GIA holdings of 5.2% once you go over the CGT allowance. Cash and S&S ISA seem to be functionally identical in reality.

[@Zero-Investing]

Cash ISA is tax-free

[@grumblewoof4721]

@@Zero-Investing Yes, trading 212 has both and ISA and a kind of deposit account both offering 5.2%. The difference is as you say the Cash ISA is tax free. But for some who already have used up the years £20,000 allowance might still want to get another £1000 by putting in £20,000 in the deposit account. This would be tax free until the interest exceeded £1000 (from all sources) as I understand it.

[@Spencer786]

In your vanguard Stocks and shares ISA, what did you invest in for you to get a 15% return? S&P 500?

[@grumblewoof4721]

@Spencer786 it's their UK version of the LifeStrategy 80/20. The previous year, it fell about 8%, recovered, and then went up about 8% in a year. So it looks like 16% 😀 at least their website says that.

[@Car-guy307]

Can you transfer between the cash isa and stocks isa ?

[@dharm9902]

I’d love to know how you do this as I can’t find an option to do so from the cash isa to shares isa

[@nburaq]

Go buy gold.Keep in safe.A year later it will be much more what they offer as interest.

[@lj6079]

Never heard of trading 212

[@sang3Eta]

Can you move money between the Stocks and Shares ISA and Cash ISA? This is what I really want to be able to do, move to cash in a down market, move back to stocks in an up martket.

[@NightElff88]

Yes, you can and it happens instantly

[@redmond4431]

Can you transfer cash from the T212 Stocks and Shares ISA over to the T212 Cash ISA (as a transfer, not taking up the ISA allowance?)

[@Cryvan]

Yes! I ve just transferred my uninvested cash from a T212 stock and shares to my T212 cash isa. Didn't use my allowance up.

[@NightElff88]

Yes! I just did that too.

[@devmehta10]

​​@@Cryvan did you do this via the app. Manage funds > move funds? I've just moved my uninvested cash from my T212 S&S ISA to my T212 Cash ISA and my allowance has been effected. Or was this transfer done in some other way?

[@Danny-npgbp]

It takes 3 business days to withdrawal. So not easy if you need funds fast

[@alexuglee9970]

Hi, I have 20 thousand I’m not allowed to withdraw from however I am allowed to pick where it goes is this the best isa currently. Or would you recommend going for a fixed rate

[@neiledwards4612]

Thanks ❤

[@reginamccarthy1372]

Thank you for the info! So if i deposited £500 in a lump sum, would that mean i would have £526 after 1 year?

[@stevenjackson9721]

No sadly not.. that be awsome i was. Remember intrest rate are based yearly, so take the amount and 5% would be the ammount for the full year.. so ÷ by 12 and that get you your monthly ammount hope that makes sense

[@j-phaines2412]

You'd earn £26 over 12 months. Or roughly £2.16 each month. It's best to divide 2.16 by 30 days to get a rough average of the daily interest payout

[@reginamccarthy1372]

Thank you! I edited the comment because I just figured that out as it seemed too good to be true! Lol thanks for replying 😊

[@OptimusToaster]

You'd get 7p a day (ish)

[@MDRashid0509]

Is it worth it for me of transferring my money from my chip 5.10% ISA to Trading 212 ISA

[@OptimusToaster]

Only you can answer that

[@thekesslerboy9337]

£1.67 extra interest per month for every £20k you have. Not much. Does this one pay out monthly? Worth another £9 a month to me so I might.

[@fireat40]

why not? every extra penny counts

[@NightElff88]

Yes it is...

[@MDRashid0509]

Any chance chip might increase its isa rate now?

[@Horia2911]

Can you have both and put 20k in each per year?

[@NightElff88]

You can have both, but you can put 20k total, not 20k in each.

[@vineethkumar6169]

Im very new to uk investments...lets say i investerd 1000£ in a year , can i withdraw 1052£ from cash isa including the interest earned after 1 year or just the 1000£ that i invested ?

[@GBennie]

All 1052

[@DreemDeep]

Does it pay monthly?

[@fireat40]

daily

[@markfoxwell2411]

It pays out daily, but remember the 5.2 % assumes the interest is reinvested and compounds.

[@davidthomas3146]

Currently have a cash ISA with Skipton which I pay into via debit card from my halifax rewards accounts for the 3 x £5 a month. Anybody know if the Trading 212 ISA will also allow deposits via debit card?

[@OptimusToaster]

It does up to £2000 per account

[@TheRealBards]

Does moving funds between the T212 cash ISA to the T212 stocks ISA affect the annual ISA limit?

[@NightElff88]

It doesn't, they are both flexible.

[@lrac111]

Money market funds are covered by the fscs, i asked vanguard via secure message which they confirmed its covered if the mmf goes bust . Why have you given doubt on this? You got any information from fscs stating different?

[@BeCleverWithYourCash]

helpcentre.trading212.com/hc/en-us/articles/15475153380637-Higher-interest-rates-on-cash#:~:text=is%20my%20money%20still%20protected%3F

[@lrac111]

Money market funds are OEIC which are to my understanding are covered The FSCS will not pay compensation if your investment performs poorly as a result of market conditions. But if a fund provider is in default, the limit is £85,000 per provider for UK domiciled mutual funds (OEICs and Unit Trusts).

[@YasinFikriYildirim]

How do I invest in SMP 500

[@sang3Eta]

VUSA = Vanguard S&P 500 Fund.

[@pjerinnoli4649]

Happy to send anyone a referral so we both get some free shares 🎉

[@hsk-jm6kh]

I would like a referral code please

[@pjerinnoli4649]

Sorry they stop them now

[@norbertkorcyl3244]

hi Andy, what kind of protection is used in Trading 212 against hacker, in most banks if i want to log on i have to do; account or customer number, passward, one time passcode received on my mobile, cheers

[@NightElff88]

Make sure to enable two-factor authentication after you create your account.

[@justdoit2717]

How are they able to offer 5.2 %? what is the catch? does anybody know? how are they making money of it?

[@justdoit2717]

Also, Can FSCS be trusted if trading 212 goes bust?

[@OptimusToaster]

Trading 212 are selling shovels during a gold rush atm

[@NightElff88]

@@justdoit2717 Yes it can. If FSCS can't be trusted, why do we care of keeping cash at banks at all?

[@sang3Eta]

It will be invested in bonds and treasuries usually (government debt).

[@deepakr8261]

Anyone have T212 referrals?

[@OptimusToaster]

I think the last campaign for regular folk ended in April but it's possible the MSE referal works all year

[@NightElff88]

Nope, the referral promo ended in April.

[@_Postman_Pat_]

@BeCleverWithYourCash Could we theoretically contribute the full £20k annual allowance to this T212 flexible cash isa, but then withdraw £4k given that it’s flexible and deposit these funds into a lifetime isa held elsewhere towards the end of the tax year now that you can contribute to multiple isas each tax year (provided that you don’t exceed the £20k annual allowance) or must any removed funds be returned to this account only? (In order to benefit from this highly competitive rate in the interim or would any funds then contributed to an existing lifetime isa held elsewhere be considered an over subscription of £4k given that you have deposited £24k 🤔🤷🏻‍♂️)

[@OptimusToaster]

Normally, funds withdrawn from a flexible isa need to be returned to the same isa. I doubt you can withdraw from this and deposit into a LISA without increasing your use of your isa allowance. Plus the Tembo ISA's rate is higher than this once you factor in the 25% bonus

[@mattlongman]

Your 212 ISAs are flexible. This means you can withdraw any amount and deposit it back without impacting your allowance, as long as you do it within the same tax year. The UK tax year runs from 6 April to 5 April. For example, if you deposit £20,000 on the 6th of April 2024, you can withdraw it on the same day and deposit it back anytime you want until the 5th of April 2025. Any amount you withdraw, including previous years contributions, you can deposit back within the same tax year.

[@BeCleverWithYourCash]

It has to come back into the same ISA BUT you could transfer £4,000 to a LISA if they allow partial transfers in