Trading212 Cash Isa does it Compound

mr_harris

Hi All

Does the trading212 cash isa interest compound looking to open one.

flaneurs_lobster

It pays 4.9 AER, does it matter if it 'compounds' or not? 

eskbanker

flaneurs_lobster said:

It pays 4.9 AER, does it matter if it 'compounds' or not? 

It can do, in that some products will only pay the interest out to external accounts without being able to pay it back in, so there is a difference between having that 4.9% within the wrapper and it being outside.

flaneurs_lobster

eskbanker said:

flaneurs_lobster said:

It pays 4.9 AER, does it matter if it 'compounds' or not? 

It can do, in that some products will only pay the interest out to external accounts without being able to pay it back in, so there is a difference between having that 4.9% within the wrapper and it being outside.

Really, didn't know that.

I'm aware that some cash ISAs allow interest to be paid externally but thought that they all allow re-investment as an option.

eskbanker

flaneurs_lobster said:

eskbanker said:

flaneurs_lobster said:

It pays 4.9 AER, does it matter if it 'compounds' or not? 

It can do, in that some products will only pay the interest out to external accounts without being able to pay it back in, so there is a difference between having that 4.9% within the wrapper and it being outside.

Really, didn't know that.

I'm aware that some cash ISAs allow interest to be paid externally but thought that they all allow re-investment as an option.

I was thinking of providers like UBL where interest must be paid away rather than those offering it as an option - this thread is an example of these, but I haven't researched whether their terms remain the same, or if their products are now flexible, or if there are other providers with similar restrictions!

https://forums.moneysavingexpert.com/discussion/6427154/isa-compound-interest