Impact on cash ISA due to stk mrkt crashing?

MikMikandThriceMik

What are peoples thoughts on a cash ISA in companies like Trading212 at the moment?

How can they continue to pay out a high interest if the stk mrkt is so bad?

If the company goes bust, how long does it take to get my money from fscs?

Thank you.

Hoenir

Cash is cash. Nothing to do with stock markets. 

ColdIron

MikMikandThriceMik said:

How can they continue to pay out a high interest if the stk mrkt is so bad?

Cash interest rates have nothing to do with stock markets

If the company goes bust, how long does it take to get my money from fscs?

Why do you think they will go bust and other deposit takers won't?

Albermarle

MikMikandThriceMik said:

What are peoples thoughts on a cash ISA in companies like Trading212 at the moment?

How can they continue to pay out a high interest if the stk mrkt is so bad?

If the company goes bust, how long does it take to get my money from fscs?

Thank you.

Cash savings are unaffected by what happens in the stock markets, in the short term anyway.
In the long term, the stock market situation may affect interest rates generally .

eskbanker

MikMikandThriceMik said:

If the company goes bust, how long does it take to get my money from fscs?

While agreeing with the above posters about its relevance, the answer to your question is:

FSCS will pay compensation within seven working days of a bank, building society or credit union failing.

https://www.fscs.org.uk/what-we-cover/banks-building-societies-credit-unions/

MeteredOut

The stock market is not crashing. Its down, but this is not a crash.

wmb194

MikMikandThriceMik said:

What are peoples thoughts on a cash ISA in companies like Trading212 at the moment?

How can they continue to pay out a high interest if the stk mrkt is so bad?

If the company goes bust, how long does it take to get my money from fscs?

Thank you.

Don't panic! At the moment the Bank of England base rate (Bank rate) is 4.5% so that's roughly the risk free rate and for the customers on the non-promotional rate this is what it's offering.

Its Isa is covered by the FSCS but stockbrokers often do well in times of market turbulence as there's lots of commission to be earned (T212 primarily through fees on CFDs).

MikMikandThriceMik

Thank you everyone.

dunstonh

MeteredOut said:

The stock market is not crashing. Its down, but this is not a crash.

And even if it is a crash, its nothing unusual.  Stockmarket crashes average one every 4 years.