Trading 212 Interest Problems Jan 2025

HSBCGEOFF

I've just heard from Trading 212 that they are experiencing difficulties with their ISA interest calculations for January 2025. Is anyone else having trouble?

Aidanmc

HSBCGEOFF said:

I've just heard from Trading 212 that they are experiencing difficulties with their ISA interest calculations for January 2025. Is anyone else having trouble?

Mentioned here https://forums.moneysavingexpert.com/discussion/6585491/trading-212-cash-isa-jan-statement-interest-discrepancy#latest

The Jan statement emailed to me yesterday only seems to include interest from 1st - 8th Jan,

But when i check online, another interest payment was made yesterday, this would be for 9-31Jan i imagine

dcs34

I think they changed the interest payment date during the month. At the start of January interest was paid daily. Then it was stated interest would be paid "at the end of the month". This was later revised to "on the third day of the next month".

Therefore it's possible the January statement doesn't include interest from 9th-31st Jan, as this will be shown in February's statement (since it was paid yesterday, 3rd February).

P1Fanatic

As above interest changed from daily to monthly starting Jan 9th. I track mine and my feb interest paid in (credited Feb 2nd) was the equivalent of Jan 9th to 31st. 

My Jan interest statement shows a lower amount which is only for Jan 1st to 8th. Presumably Feb will show the amount between Jan 9th and Feb 8th??

AmityNeon

P1Fanatic said:

As above interest changed from daily to monthly starting Jan 9th. I track mine and my feb interest paid in (credited Feb 2nd) was the equivalent of Jan 9th to 31st. 

My Jan interest statement shows a lower amount which is only for Jan 1st to 8th. Presumably Feb will show the amount between Jan 9th and Feb 8th??

The February statement will show the amount of interest paid in February, i.e. the amount you received on 2nd Feb.

susyiq

Hi, I ve had the same problem and it wasn’t added in February, I’m trying to resolve this now

JohnB47

I've just received a statement from Trading 212 re my cash ISA. It arrived today and is headed 'Monthly Statement February 2025'.

It shows interest as zero (and my capital amount as it was when I opened the ISA earlier in February), although my actual account on Trading 212 shows a fair amount of interest accruing (and capital increasing) and it says it should be paid out to me on 3rd of the month (yesterday).

Curious.

slinger2

I received my February T212 Cash ISA statement yesterday. It includes what happened to the account in February. The February interest was not credited to my account until 2 March so is not there. However it does include interest credited to my account on 2 February which covers the period 9 to 31 January (see above as to why it was 9th).

If I go into the app I can see that the February interest was credited to my account on 2 March, so will appear in my March statement (which will be sent to me early April). The app also tells me the amount of "pending interest", which is presumably for the first few days in March.

AmityNeon

Interest periods start from the last day of the previous month and end on the second-last day of the current month. Interest payments are then credited to your account on the second day of the next month (but very late in the evening).

The number of days of pending interest accrues up to a whole interest period plus 2 days, the amount of which you'll see reflected on the 2nd of the month. When interest is credited, the amount of pending interest is reduced to two days' worth and a third day's interest is then added. If you check your balances on the 3rd of the month, you'll see three days of pending interest (covering the 2nd and 1st of the month, and the last day of the previous month).

As is standard practice for interest statements from all savings account providers, the interest shown is the interest credited during the statement period. This means the emailed statement covering the month of February will show the amount of interest that was credited to your account on the 2nd February, and that's it; do not let pending daily accruals confuse you.

(Unlike most other providers, Trading 212 calculates daily interest based on the sum of both the account balance and pending interest.)

pecunianonolet

AmityNeon said:

(Unlike most other providers, Trading 212 calculates daily interest based on the sum of both the account balance and pending interest.)

So when they paid interest daily and you made your first deposit on the 1st of a month, you got the interest accrued for the 1st paid and paid on the 2nd. On the 3rd of a month the interest credited was based on the balance at the end of the 2nd and so on. Each day you had the compounding effect from the balance being credited in the morning for the previous day. 

Now your statement would indicate for interest calculation the compounding effect would still apply but instead of making 30 individual credit payments (in a month with 31 days) the calculation remains the same but you only receive one payment. So there would be no disadvantage from a compounding point of view, only from what is accessible because with daily credit payments the sum of money you could withdraw was growing daily vs now is only coming in as "lump sum" monthly growing the accessible amount.

slinger2

That's my understanding too. For someone like me (and I assume most others) who leaves the interest in the account, it doesn't make any difference. Perhaps there were a few who withdrew the few pence of interest every day. The new system will mean that they can only withdraw the interest once a month.