Trading 212 to reduce interest rate on Cash Isa from 5.2% to 5% from 9th September.

chutuk

As per screenshot below. A 0.2% reduction in interest rate from 9th Sep. 

sammy_zammy

Something I just realised…

Trading 212 paid the best rate on cash ISAs out of easy access and fixed term. Usually I might have £5k in easy access (for easy access to my savings), and £15k as a 1 year fix (for better interest rates). However, in this case, it made sense to stick all £20k in the Trading 212 ISA as it paid the highest rate anyway.

With the rate now dropping, it might make sense to ditch and switch. But… as I contributed to the ISA in this tax year, I believe any transfer must be of the full amount. Therefore I can either transfer £20k to another easy access, or £20k to a 1 year fix - but can’t really mix and match.

Is there a way around this? I suppose prior to 2024, it was always the case as you couldn’t transfer at all. The numbers above are for illustrative purposes - but perhaps it’s something for me to be mindful of before I transfer too much more into my Trading 212 ISA?

slinger2

sammy_zammy said:

Something I just realised…

Trading 212 paid the best rate on cash ISAs out of easy access and fixed term. Usually I might have £5k in easy access (for easy access to my savings), and £15k as a 1 year fix (for better interest rates). However, in this case, it made sense to stick all £20k in the Trading 212 ISA as it paid the highest rate anyway.

With the rate now dropping, it might make sense to ditch and switch. But… as I contributed to the ISA in this tax year, I believe any transfer must be of the full amount. Therefore I can either transfer £20k to another easy access, or £20k to a 1 year fix - but can’t really mix and match.

Is there a way around this? I suppose prior to 2024, it was always the case as you couldn’t transfer at all. The numbers above are for illustrative purposes - but perhaps it’s something for me to be mindful of before I transfer too much more into my Trading 212 ISA?

In theory a partial transfer is possible. However it's optional whether your providers offer this option. I think that Trading212 do not (for transfers out), so you'd have to transfer out the whole amount. You could transfer to a provider that does allow partial transfers out and then move some it out from there. Quite complicated doing it as a 2-stage process, so depends how keen you are.