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Trading 212 easy access ISA 5.2% APY and 1% cashback. Too good to be true?
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Sea_Shell said:Does it have to be a transfer in to get the 5.2% rate, or can it be new money, new account? Not interested in investing it.
I've just come across this offering, so am researching. But that point wasn't clear.It doesnt have to be a transfer, it can be new money providing you havent used up 24/25 ISA allowance.You have to accept terms of the interest consenting to your cash being invested in QMMF's before the 5.2% is applied.Interest paid daily.Also available on Trading 212 Invest accountNot necessary to buy any shares or etf if dont want too.Use a referral code when you first join 212 and get a free share!1 -
I understand about the QMMF bit. That it isn't a true "cash" account, and is invested in cash funds. But not equities.
So it has a bit more risk than true cash, but less than my Loanpad P2P cash.
If access is easy and has no penalties, how does that risk manifest itself? eg if the QMMF "lost" 2%. Does that in effect mean you only make a nett interest rate of 3.2%? Or would your capital reduce?
All very interesting. I might have a dabble with a small amount of money and then take it from there.
One other thing...How does the platform make their money, if everything is "free" to use? Is it just the 0.7% on card payments over £2000?How's it going, AKA, Nutwatch? - 12 month spends to date = 2.60% of current retirement "pot" (as at end May 2025)0 -
Sea_Shell said:I understand about the QMMF bit. That it isn't a true "cash" account, and is invested in cash funds. But not equities.
So it has a bit more risk than true cash, but less than my Loanpad P2P cash.
If access is easy and has no penalties, how does that risk manifest itself? eg if the QMMF "lost" 2%. Does that in effect mean you only make a nett interest rate of 3.2%? Or would your capital reduce?
All very interesting. I might have a dabble with a small amount of money and then take it from there.
One other thing...How does the platform make their money, if everything is "free" to use? Is it just the 0.7% on card payments over £2000?As far as i understand it the cash is not FSCS protected when in QMMF's.There is a normal Cash Isa coming onboard in June, paying 5.2% interest variable, this will be FSCS protected.Its said it will be flexible, and can transfer between S&S ISA and new cash ISAThe platform probably makes their profit on the spreads buying and selling shares, and i think on the CFD side of business.2 -
Ok, thanks. Might as well wait for the proper cash ISA 😉How's it going, AKA, Nutwatch? - 12 month spends to date = 2.60% of current retirement "pot" (as at end May 2025)0
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Sea_Shell said:Ok, thanks. Might as well wait for the proper cash ISA 😉Here is some info on upcoming cash ISAOnly issue i see with the 212 cash ISA is according to the terms they only have to give one day notice if changing the interest rate.
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Sea_Shell said:If access is easy and has no penalties, how does that risk manifest itself? eg if the QMMF "lost" 2%. Does that in effect mean you only make a nett interest rate of 3.2%? Or would your capital reduce?
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How long does it usually take for them to verify identity and open the ISA account?How's it going, AKA, Nutwatch? - 12 month spends to date = 2.60% of current retirement "pot" (as at end May 2025)0
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Sea_Shell said:How long does it usually take for them to verify identity and open the ISA account?Its all very quick from what i remember.ID verify is to upload copy of ID and take photo.I opened the 'Invest' account first and got the free share credited to that, opening the ISA after that was simple and instant.If you intend to get the free share, maybe better to open 'Invest account first, make small deposit there, to qualify for the free share.Any deposit you make to the Invest account can be simply transferred to ISA afterwards or withdrawn.If you sell the free share, i think there is a waiting period before you can withdraw the proceeds.1
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Didn't know what to tick in respect of the US w8-ben form???
Am I eligible as a UK citizen, but non-taxpayer?
I have no intention of buying US priced/domiciled stocks.How's it going, AKA, Nutwatch? - 12 month spends to date = 2.60% of current retirement "pot" (as at end May 2025)0 -
Sea_Shell said:Didn't know what to tick in respect of the US w8-ben form???
Am I eligible as a UK citizen, but non-taxpayer?
I have no intention of buying US priced/domiciled stocks.I dont recall that question. What way is it worded i might remember.Eligible for ISA or? You have NI number?I think if you are not intending to buy any US shares, its not going to really matter which selection you tick.0
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