TRADING 212 Cash ISA rate reduction to 5%

exel1966

From 9th September rate will reduce to 5% AER

It was inevitable and could have been worse, but still a good ISA to have.

Johnny-Cage

Yh just got the notification still a top end rate 

friolento

drop inevitable, but still a good rate

sausage_time

Applies to cash balance on the Stocks ISA too.

Wheres_My_Cashback

Worth keeping for me at 5%.

Moneybox still to reduce?

Middle_of_the_Road

Wheres_My_Cashback said:

Worth keeping for me at 5%.

Moneybox still to reduce?

Moneybox have reduced their simple saver to 4.75% but the ISA remains at 5.16%
I had an email notification for the former, but nothing regarding the ISA, so I guess they're not going to cut it.

Zuzi

The reduction in the Trading 212 Cash ISA rate has now taken place. I can see my new lower daily interest gain, but it seems a tad lower than what I thought it would be? Does anyone else have this?

My calculation was "amount in ISA" / 100, that x 5, that / 365, and I expected the result to be my daily interest (of course, rising slowly as it gets added to the ISA)

slinger2

Zuzi said:

The reduction in the Trading 212 Cash ISA rate has now taken place. I can see my new lower daily interest gain, but it seems a tad lower than what I thought it would be? Does anyone else have this?

My calculation was "amount in ISA" / 100, that x 5, that / 365, and I expected the result to be my daily interest (of course, rising slowly as it gets added to the ISA)

5.0% is the AER rate. The daily "gross" rate is not 5.0/365, you've got to take compounding into account.

By my calculations the daily gross rate would be 1.05^(1/365)-1 = 0.013368%. Multiplying that by 365 gives the annual gross rate of 4.87934%.

Zuzi

Ah OK, thank you @slinger2, that works out. I thought it was 5 percent before compounding.

dlevene

Moneybox saying ISA is 4.75% on their website

https://www.moneyboxapp.com/cash-isa

Dodl at 5.09% for uninvested cash though...

Luna_the_cat

Hi there I'm new here. Opened the Trading 212 Cash ISA early in August based on Martin Lewis recommendation. But then a few weeks in it dropped from 5.2% to 5%. I thought the whole point with cash ISAs was that your money was 'safely locked away' at a guaranteed rate. I'm completely discombobulated. Genuinely thought it was fixed. Could it change again? Is it going to vary as the BoE changes base rates?