Trading 212 easy access ISA 5.2% APY and 1% cashback. Too good to be true?

Homer51

Newbie here, so apologies for a basic question. I like the look of the Trading 212 ISA. I have a fixed bond 1 year Cash ISA maturing in August 2024 Can I transfer this into the 212 easy access ISA  in August and still add another £20,000 before the end of March 2025 please? 

lohr500

Your 1 year fixed bond ISA which matures in August 2024 would be part of your 23/24 ISA allowance. So unless you have already placed any cash into a new ISA for the 24/25 tax year, you would be able to add £20k this year.

Assuming you are looking at the Trading 212 Cash ISA, the big unknown is what the interest rate on that product will be in August when your 23/24 ISA matures. 

gravel_2

Homer51 said:

Newbie here, so apologies for a basic question. I like the look of the Trading 212 ISA. I have a fixed bond 1 year Cash ISA maturing in August 2024 Can I transfer this into the 212 easy access ISA  in August and still add another £20,000 before the end of March 2025 please? 

Alternatively, you could open the T212 ISA now and pay £20k in, with the transfer to follow later.

slinger2

Re: Daily interest rate

See https://helpcentre.trading212.com/hc/en-us/articles/15475153380637-Interest-on-cash "How is the daily interest payment calculated?"

In this case we have 5.2% AER. This gives us a daily rate of (1.052^(1/365.25)-1) = 0.01388%. Multiplying this by 365.25 we get 5.07% (Gross annually)

Relates to S&S but presumably the Cash ISA works the same way.

masonic

Or alternatively, take the actual interest credited per £100 x 365 to get that day's gross rate. 

For AER, just use the formula e^i - 1 where i is the gross rate as a decimal. This is for continuous compounding, but is a close approximation to daily. To get an expected gross rate from AER, it's ln(AER+1).

Seems odd that the FAQ suggests they are calculating interest by formula rather than passing on what is received by the QMMF, especially in relation to the S&S ISA. If this were really true then there would be zero risk.

juw8e7

Is this still halted or not?
T212 closed my account during the pandemic due to what they coined at the time as "excessive trading"! 🤷 LOL. 
They sent me an email stating this and said I would be welcome back in the future.
Not sure whether to bother as their practices seem quite bizarre and ludicrous.
Are they still as bat !!!!!! crazy?
Closing positions was ALWAYS a nightmare!

Petriix

juw8e7 said:

Is this still halted or not?
T212 closed my account during the pandemic due to what they coined at the time as "excessive trading"! 🤷 LOL. 
They sent me an email stating this and said I would be welcome back in the future.
Not sure whether to bother as their practices seem quite bizarre and ludicrous.
Are they still as bat !!!!!! crazy?
Closing positions was ALWAYS a nightmare!

I'd be interested in some details about your issues. So far I've only bought shares except for selling the few free ones I got from referrals. I gather they seem to take something from the spread, but you can use limit orders to achieve the target price you want. 

lohr500

A quick update on my wife's 23/24 tax year Virgin Cash ISA transfer to Trading 212.

The transfer request was submitted late on the evening of Friday 31st May.
The funds have arrived in her Trading 212 Cash ISA this morning.

The Trading 212 system still shows she has a current year allowance of £20k so it has allocated the previous Tax Year transfer correctly.

So far, so good. 

Blackbriar_040

friolento said:

I only have a cash ISA with T212 and am not interested in their texts telling me about gains or losses in random companies. Never had ant other account with them. Obvsly I am interested in msgs pertaining to my cash ISA. I have updated my notifications settings in T212 but an still getting texts which have nothing to do with my cash ISA.

Anyone else getting these texts? Did you manage to stop them? I find these messages so irritating that I am thinking of transferring my ISA to someone like Chip or Moneybox

I opened both a Trading212 Cash ISA & Investment account, (only opened for free fractional shares!)
I have not since opening received any further emails/texts regarding stocks or share information!

I didn't even change any settings within the app, everything was left on default.
The only notifications I got, was when my deposits arrived in the ISA account!

Funnily, when you open the Investment account, it goes through a load of questions, asking you about your attitude to risk, what experience you have, knowledge of investing etc.

I would have expected to receive similar texts/emails, having gone through all the stages for the investment account, but I have had nothing as of yet! 

gravel_2

Blackbriar_040 said:

I would have expected to receive similar texts/emails, having gone through all the stages for the investment account, but I have had nothing as of yet! 

What do you mean?