Trading 212 - 1% Cashback on Deposits for New ISA Customers

chels

I did search but didn't find any thread for this offer.

Trading 212 are offering 1% cashback on deposits for new ISA customers who sign up by the end of April 2023.  I was planning on sticking my £20,000 for 2023/24 into my iWeb account but I'm thinking of going for this offer instead for this coming tax year.  Any particular downsides to Trading 212 that I need to be concerned with?  I would be putting the money into a global index fund and I haven't fully checked out what funds they offer so that may or may not be an issue.

The cashback goes into the 'Invest' account so if you don't already have this you would need to open this too in order to receive the cashback and the cashback is not withdrawable for 12 months.  Someone on a YouTube mentioned if you withdraw the cashback this is treated as a capital gain, can anyone confirm if this point is correct or not?  

masonic

chels said:

I did search but didn't find any thread for this offer.

Trading 212 are offering 1% cashback on deposits for new ISA customers who sign up by the end of April 2023.  I was planning on sticking my £20,000 for 2023/24 into my iWeb account but I'm thinking of going for this offer instead for this coming tax year.  Any particular downsides to Trading 212 that I need to be concerned with?  I would be putting the money into a global index fund and I haven't fully checked out what funds they offer so that may or may not be an issue.

They don't offer open ended funds, so you'd need to choose an ETF if you want to track a global index. They have a fairly good selection, so this should not be an issue. Presumably they have a minimum holding period after which you could transfer out if you wished without penalty.

chels said:

The cashback goes into the 'Invest' account so if you don't already have this you would need to open this too in order to receive the cashback and the cashback is not withdrawable for 12 months.  Someone on a YouTube mentioned if you withdraw the cashback this is treated as a capital gain, can anyone confirm if this point is correct or not?  

I can confirm that is nonsense.

chels

Thanks for the information @masonic, will have a more in depth look at their offerings.  I'm not sure if there is a minimum holding period for the ISA itself but will dig into the details a bit more before going ahead although I don't think that would be an issue for me personally.

masonic

Having perused the terms, there does seem to be a gaping hole around them not requiring you to keep the ISA with them for any minimum period, so as written, you could transfer out as soon as the £100 landed in your Invest account and just keep the £100 with them for a year. If their previous offers are anything to go by, the terms may be updated, so do save a copy of the ones in force when you sign up.

chels

That does seem an oversight on their part but for me as long as the money is in a suitable fund then it doesn't really matter if it's with them or iWeb.  It will be £200 cashback in my case (on £20,000 deposit) but yeah by the sounds of it I could just leave that money there and transfer the ISA if I really wanted to.

gizz_10

Also make sure if you are a new customer you sign up with a referral link because then you also get a free share worth upto £100.  I signed up yesterday and immediately got a free Alphabet share. I am sure there will be some referral links on the referral board.