Iweb interest on cash

barbuda

Hi all,
I have an ISA with Iweb and any dividends that build up do not receive any interest at all, they never have....
I also have an ISA with AJBell and they do pay interest ~3%.
It bugs me that Iweb will be earning interest on my money but they won't let me see any of it.

So, I have come across an overnight banking etf, the code is CSH2 and is run by Lxyor, it appears secure with little risk, I am making around 4% and have had no issues, I just buy the etf with the accumulated dividends (no stamp duty, £5 fee). It may not suit everyone but it is worth looking at.
Cheers 

Doctor_Who

barbuda said:

Hi all,
I have an ISA with Iweb and any dividends that build up do not receive any interest at all, they never have....
I also have an ISA with AJBell and they do pay interest ~3%.
It bugs me that Iweb will be earning interest on my money but they won't let me see any of it.

So, I have come across an overnight banking etf, the code is CSH2 and is run by Lxyor, it appears secure with little risk, I am making around 4% and have had no issues, I just buy the etf with the accumulated dividends (no stamp duty, £5 fee). It may not suit everyone but it is worth looking at.
Cheers 

Yes, this has been discussed quite a few times on the Savings and Investments board and the Pensions board. Most platforms will pay some interest on the cash held, but this can often be beaten by a short term money market fund tracking SONIA. A recent thread is here:

https://forums.moneysavingexpert.com/discussion/6463278/thinking-about-investing-in-a-money-market-fund/p1

barbuda

Hi Doc, 
I had searched the forum for Iweb Cash but found no threads...thanks for the link

Cheers

Doctor_Who

There's also this thread on the Pensions board about money market funds:

https://forums.moneysavingexpert.com/discussion/6456509/choosing-a-money-market-fund/p1

Albermarle

It bugs me that Iweb will be earning interest on my money but they won't let me see any of it.

I assume with their very low fee structure, they have to try and make money in other ways.

eskbanker

barbuda said:

I have an ISA with Iweb and any dividends that build up do not receive any interest at all, they never have....
I also have an ISA with AJBell and they do pay interest ~3%.

It bugs me that Iweb will be earning interest on my money but they won't let me see any of it.

If you're bothered about interest on dividends, are you able to arrange your holdings so that the ones paying dividends are held at AJ Bell, or get them reinvested automatically?

jimjames

barbuda said:

It bugs me that Iweb will be earning interest on my money but they won't let me see any of it.

So, I have come across an overnight banking etf, the code is CSH2 and is run by Lxyor, it appears secure with little risk, I am making around 4% and have had no issues, I just buy the etf with the accumulated dividends (no stamp duty, £5 fee). 

You must be holding a decent amount of cash to make it worthwhile paying £10 dealing fee (£5 in, £5 out) every time you want to buy that ETF with dividends just to earn interest. Would it be better to transfer to a cash ISA or move the dividends out the ISA to earn if you're not reinvesting the money. My dividend balance is under £20 after reinvestment so definitely not worth spending £10 to get some interest.

barbuda

You must be holding a decent amount of cash to make it worthwhile paying £10 dealing fee (£5 in, £5 out) every time you want to buy that ETF with dividends just to earn interest. Would it be better to transfer to a cash ISA or move the dividends out the ISA to earn if you're not reinvesting the money. My dividend balance is under £20 after reinvestment so definitely not worth spending £10 to get some interest.

Hi, I let the dividends accumulate, together with any sales I have made, then make one purchase of Lxyor for £5, it just stays there with the money that is already in Lxyor.
When I want to withdraw its just one payment of £5 to withdraw all of it. So there aren't a lot of fees payable over a year, perhaps £15 which is well covered by the income.
Tax problems if I withdraw from ISA....Too much hassle transferring to cash ISA....so quite happy as I am.
Thanks for all replies;-)
Cheers 

savit4l8er

Thanks for posting this. It's given me something to look into on the links above as well.