FSCS money protection with Trading 212 bank

sophie850509

Can anyone help me please? I have seen advice from MSE website that Trading 212 offers best interest rate for ISA account. However, I noticed this bank does not have record on FSCS website. I want to know if this bank has money protection? And how much? Thanks!

bioboybill

It has £120K FSCS protection for the Cash ISA. Your money is spread in various well known banks. Obviously if you already have other money in those banks you have to take that into account. It is shown within the app where your money is.

sophie850509

But why trading 212 is not on fscs website? It makes me think the money will not be protected.

Ayr_Rage

https://forums.moneysavingexpert.com/discussion/comment/81932236#Comment_81932236

Your thinking is incorrect @sophie850509

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

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/81932236#Comment_81932236

Because your money isn't held by T212 - it's held in their partner banks, who are all FSCS regulated. See here for more info:

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

wmb194

https://forums.moneysavingexpert.com/discussion/6660747/fscs-money-protection-with-trading-212-bank

Trading212 is a stockbroker, not a bank. It holds client funds with other banks and, if not in a Cash ISA, with money market funds.

It shows you the breakdown in your account:

bioboybill

https://forums.moneysavingexpert.com/discussion/comment/81932236#Comment_81932236

Because, as I explained, your money is held with well known banks (Barclays, Nat West, Chase etc). T212 is just the platform.

masonic

https://forums.moneysavingexpert.com/discussion/comment/81932236#Comment_81932236

The FSCS website is flawed and unhelpful, unfortunately. There is an assumption that you'll provide the underlying deposit account provider in your search. But T212 isn'r the deposit taker in this case, it is one of their partner banks. It is something I've raised with the FCA and they've acknowledged is "problematic", but they've not yet addressed it.

What protects you in practice is that they have client money permission within the Financial Services Register. See https://register.fca.org.uk/s/firm?id=001b000000NMi1QAAT

subjecttocontract

The fact that Trading 212 would hold my funds in partner banks is the reason I won't place my ISA savings with them. I already have large sums deposited with some of the banks they use and wouldn't want to exceed the £120K limit.