Trade212 cash interest protection?

DjangoUnchained

Is it correct that the cash held in your trade 212 account is not protectected By The FSCS?

Ayr_Rage

Have a look at their website!

https://www.trading212.com/en/money-protection

DjangoUnchained

Yes saw that, but it says interest earning cash may be kept in low risk QMMF funds which arnt FSCS protected.

Ayr_Rage

DjangoUnchained said:

Yes saw that, but it says interest earning cash may be kept in low risk QMMF funds which arnt FSCS protected.

Well, there's your answer!

Don't enable interest on any cash balance, they'll keep it in FSCS protected banks.

Really simple.

DjangoUnchained

Ayr_Rage said:

DjangoUnchained said:

Yes saw that, but it says interest earning cash may be kept in low risk QMMF funds which arnt FSCS protected.

Well, there's your answer!

Don't enable interest on any cash balance, they'll keep it in FSCS protected banks.

Really simple.

but i want my cake and eat it?

Ayr_Rage

If you want interest you'll just have to accept a small amount of risk as I do.

masonic

DjangoUnchained said:

Yes saw that, but it says interest earning cash may be kept in low risk QMMF funds which arnt FSCS protected.

Why do you assume the QMMF they use don't have FSCS protection? If they are UK domiciled then they will. Whether or not the fund is protected, if T212 fails, then you'd have FSCS protection in respect of any assets the administrator cannot return to you.

DjangoUnchained

because it says.......

Is my money still protected?

Where we hold your money with a bank, you are protected by the FSCS up to a limit of £85,000. Learn more about how your money is protected here.

Money placed with a QMMF is treated as an investment and not as money held with a bank. In the unlikely event that the QMMF fails to maintain their low-risk strategy, as with any investment, the protection will not be available. We carefully select all QMMFs to ensure that they are highly liquid, stable in value and maintain their highly regulated status.

masonic

DjangoUnchained said:

because it says.......

Is my money still protected?

Where we hold your money with a bank, you are protected by the FSCS up to a limit of £85,000. Learn more about how your money is protected here.

Money placed with a QMMF is treated as an investment and not as money held with a bank. In the unlikely event that the QMMF fails to maintain their low-risk strategy, as with any investment, the protection will not be available. We carefully select all QMMFs to ensure that they are highly liquid, stable in value and maintain their highly regulated status.

"as with any investment, the protection will not be available" is clearly incorrect. Many investments have FSCS protection and the FSCS has in fact paid compensation to consumers where their provider has gone into administration in the past.

However, they mention Blackrock's ICS funds as an example, and these are domiciled in Ireland and therefore don't have FSCS protection if Blackrock should fail. Likewise, JPMorgan's Liquidity funds are domiciled in Luxembourg. You'd therefore only have protection in the case of T212 failing.

Whereas if you used Vanguard's or Royal London's Short Term Money Market fund yourself in an investment account, you would have FSCS protection if that is important to you.

wmb194

At the moment these are the banks and QMMFs shown for me in the app for sterling deposits:

masonic

Thanks, so all offshore based on ISIN code.