IG 8.5% rate for new customers - any catch?

moneywow1

Just saw this

https://www.ig.com/uk/investments/share-dealing

Was thinking about moving 100k over from T212 and taking advantage for a few months, but are there any catches?

Has anyone else done this? How easy is the transfer?

Thanks

Emmia

moneywow1 said:

Just saw this

https://www.ig.com/uk/investments/share-dealing

Was thinking about moving 100k over from T212 and taking advantage for a few months, but are there any catches?

Has anyone else done this? How easy is the transfer?

Thanks

The interest rate quoted implies a fair level of risk and requires you to make share trades each month. You could get back substantially less than you put in.

 It's not a "plonk it in the account at watch it grow".

Have you read the T&C's in the black box at the bottom of the page you linked to?

What is your risk appetite for this money?

slinger2

"AER variable (interest earned) on GIA, ISA and SIPP account balances until 31 August 2025; rate reverts to 4.25% AER variable thereafter. New clients only – existing clients continue to earn 4.25% AER variable. Interest will be paid on GBP balances up to £100k per client. To qualify, place your first trade between 8-31 May 2025 and hold an open position or trade in each subsequent calendar month."

I'm not sure what "hold an open position or trade in each subsequent calendar month" means. Perhaps a single trade in June, July and August would qualify, as well as making your first trade in May.

All too complicated for me, with the offer only lasting 3 months.

george4064

moneywow1 said:

Just saw this

https://www.ig.com/uk/investments/share-dealing

Was thinking about moving 100k over from T212 and taking advantage for a few months, but are there any catches?

Has anyone else done this? How easy is the transfer?

Thanks

Interested to know in what situation has driven you to hold £100k in a Cash ISA? Seems a very large amount exposed to being eroded by inflation/shortfall risk.

friolento

george4064 said:

moneywow1 said:

Just saw this

https://www.ig.com/uk/investments/share-dealing

Was thinking about moving 100k over from T212 and taking advantage for a few months, but are there any catches?

Has anyone else done this? How easy is the transfer?

Thanks

Interested to know in what situation has driven you to hold £100k in a Cash ISA? Seems a very large amount exposed to being eroded by inflation/shortfall risk.

There could be plenty of reasons why someone does not have a 5+ year financial horizon 

moneywow1

Yeah I might need the money in the next few years and don't want to risk it being in such volatile markets

I looked into it more and I'm going to transfer. 

Looks like you only need to open the account and then make 3 trades (say £10 each on 3 boring UK companies) to enable the 8.5% rate and avoid the £24/qtr custody fee 

Total fees would be 15p for stamp duty

Sure it's only 3 months but that's with the effort for me, then I can always transfer back out, or stick with them if the rate is still decent

Ocelot

george4064 said:

moneywow1 said:

Just saw this

https://www.ig.com/uk/investments/share-dealing

Was thinking about moving 100k over from T212 and taking advantage for a few months, but are there any catches?

Has anyone else done this? How easy is the transfer?

Thanks

Interested to know in what situation has driven you to hold £100k in a Cash ISA? Seems a very large amount exposed to being eroded by inflation/shortfall risk.

I have over 300k in cash ISAs.

masonic

It's not abundantly clear where the capital is held, whether there is any eligibility for FSCS protection, etc.

For money you may need in the short term, it would be advisable to understand the risks before diving in.

terdev

moneywow1 said:

Yeah I might need the money in the next few years and don't want to risk it being in such volatile markets

I looked into it more and I'm going to transfer. 

Looks like you only need to open the account and then make 3 trades (say £10 each on 3 boring UK companies) to enable the 8.5% rate and avoid the £24/qtr custody fee 

Total fees would be 15p for stamp duty

Sure it's only 3 months but that's with the effort for me, then I can always transfer back out, or stick with them if the rate is still decent

I'm in a similar position to yourself, approx. £100k in Trading 212 Cash ISA. 
I think you are correct, requires a little bit of effort, but worth it. Regarding ISA rules, do you know if I will need to close down the Trading 212 cash ISA in order to take advantage of the IG deal.

kimwp

It looks like "trade" means spread betting or CFDs, which are risky I think - uses leverage and therefore you might end up owing a lot. I'm trying to work out how to minimise a loss, can anyone advise on how to do this? I'm thinking use a company whose shares are worth very little, like Anemoi, so not much can be lost.

masonic

kimwp said:

It looks like "trade" means spread betting or CFDs, which are risky I think - uses leverage and therefore you might end up owing a lot. I'm trying to work out how to minimise a loss, can anyone advise on how to do this? I'm thinking use a company whose shares are worth very little, like Anemoi, so not much can be lost.

I would have thought the safest spread bet would be one on something that is a near certainty with as little money as possible. Or match a pair of bets so the gains on one will cancel out losses on the other.