Cahoot savings vs Trading212 ISA

martyp

Hi all,

Probably not much in this but I have mortgage overpayments around £2.5k in a savings account.
I already have a Cahoot current account and considered the 5.2% saver as best option but liked the monthly interest option so I can move the money with interest if the rate drops. The monthly interest option is 5.08% so a tiny loss I suppose.
I did consider the Trading212 5.2% ISA as don't currently have an ISA. I'm assuming with that I can put extra money in at any time up to £20k as well as easy access?

I'm thinking for the amount anyway being relatively small that the differences would literally be a few quid in interest?

Petriix

The benefit to Trading212 is getting a free share for opening a S&S ISA and the commission free trading. You can also instantly move money between the S&S and cash ISA accounts within the app. Finally setting up regularly deposits via debit card is a great way to trigger the TSB spend and save account cashback. 

Even if you don't want to buy any shares, opening the S&S ISA just for the single free share is a no-brainer. 

slinger2

They're basically the same interest rate. The Cahoot 5.08% gross for monthly interest works out at 5.20% AER when you do the compounding. Trading212 pay interest daily so their gross rate will be marginally less (5.07% by my calculation) but you can safely ignore the difference.

slinger2

One big difference is that for Cahoot "If the rate goes down, we’ll let you know around 60 days before the rate changes" whereas Trading212 say "we will give you at least one(1) day's notice."

martyp

Thanks both, good points to consider definitely. I don't fully get the interest rate specifics with AER etc.

Cahoot would seem like the safest straightforward option with a bit more interest rate confidence although Trading212 definitely seems to have positive elements. I did read they had some restrictions in place at the moment due to high demand?

arfster

T212 spending card with 1.5% cashback is a nice extra. That's only from the general account, not the isa, but you can move funds between them no problem (isa is flexible too).