Trading 212 Cash ISA Help

himonster

Hi, I have just opened an account but haven't yet transferred anything. I have a few questions: 

Can anyone recommend this company please? 

From what I've read, interest is paid monthly so I can take that out at any point? 

Is the cash ISA protected by FSCS? I've read that someone said it isn't and that it's something else (Q something?) so was a bit worried.

When do I need to transfer the ISA to another account? Is that after the end of March 2026? At which point, anything I transfer isn't counted towards the next tax allowance?

Thanks

wmb194

himonster said:

Hi, I have just opened an account but haven't yet transferred anything. I have a few questions: 

Can anyone recommend this company please? 

From what I've read, interest is paid monthly so I can take that out at any point? 

Is the cash ISA protected by FSCS? I've read that someone said it isn't and that it's something else (Q something?) so was a bit worried.

When do I need to transfer the ISA to another account? Is that after the end of March 2026? At which point, anything I transfer isn't counted towards the next tax allowance?

Thanks

If you look at the Isa sub-forum you'll see lots of people talking about it and all your questions are covered. I've been using T212 for about six years and I think it's fine.

https://forums.moneysavingexpert.com/categories/isas-tax-free-savings

Ayr_Rage

You never NEED to transfer an ISA.

There are no limits on transfers, the limit is £20,000 of NEW funds each tax year.

Tax years run from 6 April to the following 5 April, not March.

himonster

Ayr_Rage said:

You never NEED to transfer an ISA.

There are no limits on transfers, the limit is £20,000 of NEW funds each tax year.

Tax years run from 6 April to the following 5 April, not March.

I thought you had to transfer your ISA if you wanted to take advantage of the higher interest rates once your current rate ends? Otherwise that same money counts towards your limit on the next year?

himonster

wmb194 said:

himonster said:

Hi, I have just opened an account but haven't yet transferred anything. I have a few questions: 

Can anyone recommend this company please? 

From what I've read, interest is paid monthly so I can take that out at any point? 

Is the cash ISA protected by FSCS? I've read that someone said it isn't and that it's something else (Q something?) so was a bit worried.

When do I need to transfer the ISA to another account? Is that after the end of March 2026? At which point, anything I transfer isn't counted towards the next tax allowance?

Thanks

If you look at the Isa sub-forum you'll see lots of people talking about it and all your questions are covered. I've been using T212 for about six years and I think it's fine.

https://forums.moneysavingexpert.com/categories/isas-tax-free-savings

I did and people have all sorts of issues transferring out to another bank.

Ayr_Rage

Previous years funds never count again if transferred.

jimjames

himonster said:

Ayr_Rage said:

You never NEED to transfer an ISA.

There are no limits on transfers, the limit is £20,000 of NEW funds each tax year.

Tax years run from 6 April to the following 5 April, not March.

I thought you had to transfer your ISA if you wanted to take advantage of the higher interest rates once your current rate ends? Otherwise that same money counts towards your limit on the next year?

The point is you don't HAVE to transfer when a rate ends. You can choose to transfer if you want a better rate but it definitely isn't a requirement.

If you take the interest out then you lose that part of your allowance. Leave it in the ISA and the tax free total will increase. Say you have £20k at 5% then at the end of the year you have £21000 in the ISA tax free. Take the interest out and you've only got £20k tax free.

himonster

jimjames said:

himonster said:

Ayr_Rage said:

You never NEED to transfer an ISA.

There are no limits on transfers, the limit is £20,000 of NEW funds each tax year.

Tax years run from 6 April to the following 5 April, not March.

I thought you had to transfer your ISA if you wanted to take advantage of the higher interest rates once your current rate ends? Otherwise that same money counts towards your limit on the next year?

The point is you don't HAVE to transfer when a rate ends. You can choose to transfer if you want a better rate but it definitely isn't a requirement.

If you take the interest out then you lose that part of your allowance. Leave it in the ISA and the tax free total will increase. Say you have £20k at 5% then at the end of the year you have £21000 in the ISA tax free. Take the interest out and you've only got £20k tax free.

Thank you. But then it'll just sit there in a low interest ISA account after the first year won't it?

booneruk

himonster said:

jimjames said:

If you take the interest out then you lose that part of your allowance. Leave it in the ISA and the tax free total will increase. Say you have £20k at 5% then at the end of the year you have £21000 in the ISA tax free. Take the interest out and you've only got £20k tax free.

Thank you. But then it'll just sit there in a low interest ISA account after the first year won't it?

Depends on the cash ISA type - if fixed then yes, you usually get put onto a punishment rate if you do nothing after the fixed period ends. T212 is a variable rate though, so there's no cliff edge at the end of 12 months - unless you're on a temporary bonus rate that is (even without this, t212 is competitive)

Fossil_36

I've just opened a Trading 212 Cash ISA account via the MSE link but not made a deposit yet. It shows an interest rate of 4.35% with no mention of the 0.72% newbie bonus and I can't see any way of contacting them to confirm it, does anyone have experience of this please?

himonster

Fossil_36 said:

I've just opened a Trading 212 Cash ISA account via the MSE link but not made a deposit yet. It shows an interest rate of 4.35% with no mention of the 0.72% newbie bonus and I can't see any way of contacting them to confirm it, does anyone have experience of this please?

If you click start saving now, it shows you the steps you've done and what is left to do. The higher rate shows at the bottom.