How will Trading 212/Moneybox etc react when BOE cut base rate?

Canny_mal

I know no-one really knows but do people think, when the BOE cut the base rate which could be as soon as 1st August, will these top paying variable rate ISA providers pass the full cut onto customers straightaway? 

In the case of Trading 212, if BOE cuts rates by 0.25% and they pass that on then their rate will drop to 4.95% which would bring it in line with the current best 1 year fix.

I'm trying to weigh up whether it's wise to jump ship to Secure Trust now and fix for a year at 4.95% while I can as the general feeling is once the first base rate is announced further cuts will follow over the coming months.

gravel_2

They will lower the rates almost certainly - the main question is how hard will they try to remain competitive. The model is likely not a major profit driver for them but they are essentially passing on the QMMF/commercial bank deposit rate they can currently achieve on the market. BOE change will immediately change the return T212 can achieve from those sources.

Hoenir

Trading 212 uses a mixture of money market funds, time deposits, and current accounts to achieve their advertised deposit rate. As a consequence the rate could chnge at any time not just when the BOE takes action. That's the nature of being "variable". 

mark_cycling00

What are "time deposits" and current accounts and how do these generate yield? 
I understand how MMF does that. 

Maby thanks