IG 8.5% rate for new customers - any catch?

Yamahaxyz

Hi All, 

Thanks for all the helpful comments in this post. 

Has anyone encountered the following issue when trying to transfer a cash ISA in to get the boosted rate?  The ISA transfer form that the IG platform generates states that I haven’t provided a NI number to the platform (despite the fact I did when signing up).  I’m worried this will cause the ISA transfer to fail because my cash ISA provider will have my NI number but IG is saying they don’t have mine. 

kimwp

The WhatsApp finally replied- 

so this is a promotion period running from 8 May – 31 May 2025 Clients must place their first-ever IG trade during this time

From the date of first trade until 31 August 2025, if ongoing criteria are met- the interest rate would be paid out

IG Uk Support: First-ever trade on any IG account (no prior trades or investments).

- Clients who funded before 8 May but trade during this window are eligible.

IG Uk Support: For each month (May–August), client must have any one of the following:

- An open share position

- At least one buy/sell trade

- An active Smart Portfolio

And when I asked the question, does buying a unit of an etf count as a trade, the IG ai assistant in the chat said Hi there! I'm IG Assist, IG's AI agent powered by Intercom. Yes, buying a unit of an ETF does qualify as a trade. ETFs are bought and sold on stock exchanges, similar to individual stocks. When you buy an ETF unit, you're essentially making an investment trade.

PlayDumb

Having read the offer t&c to tick the offer conditions. I interpret 'open position' as buy a stock before 31-May. Keep it until 31-Aug and voila you get the higher rate. This way you do get charged £8 per month when no trades were done so presumably £24 for Jun-Jul-Aug. Or you could just sell and immediately buy back a very liquid share like LLOYDS bank without losing much in trading cost. 

Mind you, the normal 4.25% rate even after the offer ends on 31-Aug is competitive. 
They make some mention of FSCS protection upto £85k. But they use a pool of banks. If you have money in the same bank then things get tricky 

Their withdrawal is slow (2-3 days). 2 days delay cash settlement for a just sold security is understandable. Not for cleared cash

orange-juice

Got an email confirming that I’d qualified for the 8.5% boosted rate.

weird thing is that it still says 4.25% on the app.

My only concern is whether my cash is tied up in QMMFs. https://www.ig.com/uk/client-funds Suggests it might be…

masonic

At other providers with a similar basic interest rate, that is the condition for earning interest. T&Cs suggest IG is taking the same approach.

kimwp

I got a response from their customer service email:

I can confirm that buying a share of the Invesco All World ETF in your ISA, GIA or SIPP absolutely counts as a qualifying trade for the 8.5% promotional interest.

You do not need to use spread betting or CFDs to be eligible — those are separate trading products. For this promotion, we’re referring to investing via share dealing accounts (such as ISA, GIA, or SIPP).

Regarding the app showing 4.25% — you're right that it can be confusing. At the moment, our system can only display one default interest rate, which is shown to all clients. This does not affect your eligibility.

If you qualify, your boosted 8.5% interest will still be applied in the background and credited at the end of the month, even though the displayed rate doesn’t update in real-time.

You’ve done the right thing by placing a qualifying investment during the promotional window. The promotional interest is calculated daily and credited at the end of each calendar month, so your June interest (at 8.5%) will appear in early July, if you remain eligible throughout the month.

kimwp

What's the issue with cash being tied up as QMMFs?

masonic

kimwp said:

What's the issue with cash being tied up as QMMFs?

Not really an issue per se. But QMMF are not risk free, so one should understand and be comfortable with that. They are, I suppose, the next step up the risk ladder above buying individual gilts and holding to maturity. They consist of a mix of institutional term deposits, short-dated government and corporate bonds. There would be no compensation should the underlying investments lose money, but there may bs FSCS protection if the fund house committed fraud. So it adds an element of counterparty risk that is not present with retail deposits (below the compensation limit). Which would likely only be a major concern if we had another 2008 style financial crisis.

kimwp

masonic said:

kimwp said:

What's the issue with cash being tied up as QMMFs?

Not really an issue per se. But QMMF are not risk free, so one should understand and be comfortable with that. They are, I suppose, the next step up the risk ladder above buying individual gilts and holding to maturity. They consist of a mix of institutional term deposits, short-dated government and corporate bonds. There would be no compensation should the underlying investments lose money, but there may bs FSCS protection if the fund house committed fraud. So it adds an element of counterparty risk that is not present with retail deposits (below the compensation limit). Which would likely only be a major concern if we had another 2008 style financial crisis.

Thanks Masonic! 

kimwp

orange-juice said:

Got an email confirming that I’d qualified for the 8.5% boosted rate.

weird thing is that it still says 4.25% on the app.

My only concern is whether my cash is tied up in QMMFs. https://www.ig.com/uk/client-funds Suggests it might be…

Did everyone else get an email confirming their qualification for the rate?

Edit- I got an email yesterday (Thurs), after doing my first trade on Monday.