Trading 212 offers 5.2% interest: what's the catch?

Trading212 has just increased the savings rate to a table topping 5.2%. So should you be moving your money? Well, it's not a true savings account so you need to know the risks first.

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W A T C H N E X T

#Savings #Trading212 #bestsavingsaccounts

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A B O U T A N D Y

DISCLAIMER
Content in these videos does not constitute regulated financial advice. Any offers mentioned were correct at the time of filming.

[BNES]

This week Plum and Moneybox increased their rates to 5.17% AER and 5.16% AER respectively.

[maugre]

Using T212, getting the 5.2% and 1% cashback for deposits. I'm not getting that much return anywhere else at the moment.

[davidg]

I think the main benefit is that its 5.2% interest on unlimited balance and it does NOT count toward your interest allowance if held in their ISA account... I dont think anything else can beat that at the moment?

[dantae]

5.2% isa. 20% s&p500 over the last year. not investing is stupidity. this also bad info 212 cash isa is a ISA protected bu fca up to 85k

[shanecantwell]

I make use of this as it’s a great place to put the money before I move it into my S&S ISA on the 6th April 😊

[okunrin]

Thank you so much.
I too wondered why they want me to press the “I want interest” button.
I just thought so far I keep the total amount (investment and cash) below £85k my money is covered if they go bust.
It’s concerning to know that it’s at risk.
I’ll keep to normal savings.

[adrianl]

Tip: it's possible to max the Santander Edge Saver (£4k @ 7%) and not pay any fee. This is achieved by simply not setting up any direct debit on the associated Edge current account.

[Dr.JubairsFinance]

Really hard to beat, but ofc MMFs are outside the comfort zone of most people

[thomaseast]

Excellent info. Probably going to 212 in April, really good to know.

[jennyverano]

Ulster bank also offers 5.2% on balances over 5k

[paulf]

Keep in mind that they also offer that in ISA account so you DON"T pay any tax on this interest! If you do with bank, with normal savings account, you'll be paying it

[fraggr]

Trading 212 shows you what % is in a bank account and % in QMMF. Currently mine is 100% bank accounts, and so is FSCS protected.

[petehiggins]

Most if not all of the execution-only stockbrokers have resumed paying interest on uninvested cash but their rates are much lower than this, typically 2-3%.

[leona_devon]

now that's interesting, that's now how I understand it, you have 2 options with T212, CFD's (avoid like the plague) and Stock and shares ISA, once you open the ISA and put your money into that, then you should be protected.

[simonpackham]

Is the Cash ISA FSCS protected (as opposed to the uninvested funds in the S&S ISA pot)?

[gabrielalejandroferrucci]

Do we lose FSCS protection if we invest in a Cash ISA with Trading 212?

[popinjay]

for cash isa purposes please note trading 212 does not allow transfer ins any more even though the option is there and it still advertises as such, presumable until they lower the interest paid out and a false means of drawing people in. thats the catch

[CreuzaSantoscomamorcomunidade]

Trading 212 allow traders to hold stocks permannently in a portfolio?

[ryanmilner]

So it wouldn't be covered by the fscs ?

[anantg]

If i put 10K as uninvested cash in ISA account in trading 212, will the interest earned be tax free (as its a ISA account)?