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

gravel_2

slinger2 said:

gravel_2 said:

slinger2 said:

DJSINGH said:

slinger2 said:

Seems I am eligible, being new to Transfer212. The question is whether its a good deal for me. I'm paying 20% income tax on my non-ISA savings, so opening a Cash ISA in 24/25 will save me 1% of what I put in (20% of the roughly 5% interest). This matches the 1% offered by Transfer212. I'd still have an ISA for 24/25 and could transfer the Transfer212 Stocks & Shares ISA to a Cash ISA after April 2025 if I wanted to.

The question then is whether having a Stocks & Shares ISA is any use to me. I could leave the money in one of their MMF getting a relatively safe variable rate in currencies of my choosing. I could buy and sell things but normally I'm under the CGT/Dividend allowances and probably will be even though they're halving this week.

Maybe I'll give it a go just for a bit of entertainment.

Could you technically open the S&S ISA, receive the 1% bonus then switch the S&S ISA away, straight after? I cant see anything that says the ISA needs to remain with them for a period of time? (Only that you cant take the 1% bonus until 12 months later. That bonus goes into your invest account, rather than ISA anyway)

or even the other round: open a Cash ISA now with someone else, and then transfer it to Trading212 next March to get the £200. All a bit to complicated for me.

No. Transfers do not count as deposits for the purpose of the 1% cashback promo. Also the promo ends at the end of April this year.

"‘Deposit’ means any deposited funding or transferred funds in your Activated ISA Account during the Tax Year, ..."

"3.3. Eligible clients (as per Clause 3.1. and 3.2.) who have completed their application for an Activated ISA Account with Trading 212 between 19 January 2024 and 30 April 2024 and have transferred their Deposit during the Tax Year are also eligible for this Campaign. Transfers of previous tax year subscriptions (i.e. deposits made before 6 April 2024) will not count as ‘Deposit’."

I was assuming from this that a new 2024/25 ISA could be transferred in at any time during the 2024/25 tax year. You'd have to "have completed your application" before 30 April 2024.

Apologies, I'm just wrong.

dlevene

So a transfer of a 23/24 ISA made between 6 April and 30 April 2024 *would* count for cashback?

slinger2

dlevene said:

So a transfer of a 23/24 ISA made between 6 April and 30 April 2024 *would* count for cashback?

Don't believe so. Has to be 24/25 money.

"‘Deposit’ means any deposited funding or transferred funds in your Activated ISA Account during the Tax Year, up to the total amount of GBP 20,000;
‘Tax Year’ means the 2024/2025 UK tax year, starting on 6 April 2024 and ending on 5 April 2025;"

dlevene

Right, that was my original interpretation

masonic

It would be a bit pointless subscribing to a different 2024/25 ISA just to transfer it in.

slinger2

masonic said:

It would be a bit pointless subscribing to a different 2024/25 ISA just to transfer it in.

Couldn't someone put £20k in a Cash ISA for most of 24/25, saving up to £200 in income tax and then transfer it over in March 2025 to get the £200 bonus too.

or put the £20k in straight away to get the £200 bonus and then transfer it out to a Cash ISA to save up to £200 in income tax in 24/25.

Just thinking.

masonic

slinger2 said:

masonic said:

It would be a bit pointless subscribing to a different 2024/25 ISA just to transfer it in.

Couldn't someone put £20k in a Cash ISA for most of 24/25, saving up to £200 in income tax and then transfer it over in March 2025 to get the £200 bonus too.

or put the £20k in straight away to get the £200 bonus and then transfer it out to a Cash ISA to save up to £200 in income tax in 24/25.

Just thinking.

The second option would be the way to go if not wishing to use their MMF interest option. Though I suspect it will generate a higher return than an easy access cash ISA over the next 12 months.

I don't know where saving £200 in income tax comes into it. Both ISAs would have tax free returns.

slinger2

masonic said:

slinger2 said:

masonic said:

It would be a bit pointless subscribing to a different 2024/25 ISA just to transfer it in.

Couldn't someone put £20k in a Cash ISA for most of 24/25, saving up to £200 in income tax and then transfer it over in March 2025 to get the £200 bonus too.

or put the £20k in straight away to get the £200 bonus and then transfer it out to a Cash ISA to save up to £200 in income tax in 24/25.

Just thinking.

The second option would be the way to go if not wishing to use their MMF interest option. Though I suspect it will generate a higher return than an easy access cash ISA over the next 12 months.

I don't know where saving £200 in income tax comes into it. Both ISAs would have tax free returns.

If the £20k cash was in an ordinary savings account (i.e. not in a Cash ISA) I'd pay 20% of the 5% interest in tax = £200 (since my total interest for the year will be over the tax free allowance)

masonic

slinger2 said:

masonic said:

slinger2 said:

masonic said:

It would be a bit pointless subscribing to a different 2024/25 ISA just to transfer it in.

Couldn't someone put £20k in a Cash ISA for most of 24/25, saving up to £200 in income tax and then transfer it over in March 2025 to get the £200 bonus too.

or put the £20k in straight away to get the £200 bonus and then transfer it out to a Cash ISA to save up to £200 in income tax in 24/25.

Just thinking.

The second option would be the way to go if not wishing to use their MMF interest option. Though I suspect it will generate a higher return than an easy access cash ISA over the next 12 months.

I don't know where saving £200 in income tax comes into it. Both ISAs would have tax free returns.

If the £20k cash was in an ordinary savings account (i.e. not in a Cash ISA) I'd pay 20% of the 5% interest in tax = £200 (since my total interest for the year will be over the tax free allowance)

The only way it would end up in an ordinary savings account is if you withdrew it from the Trading212 S&S ISA. At that point you'd lose your allowance as well, because it is not a flexible ISA.

slinger2

So today I've put £5k into their S&S ISA. The £50 (1%) bonus has already appeared in my "Invest" account but, as per the rules, it's not accessible for a year. I've turned on the "earn interest on cash" so I'm getting 5.2% "interest" (69p/day). This is variable and also my capital is at risk, so not comparable to a normal saving account.

Now I've got to decide what to do with the £5k.