Trading 212 Cash ISA: Earn 5.2%

Find out if it’s any good

Investing app Trading 212 is rolling out it’s new Cash ISA, paying 5.2% variable. Here’s what you need to know.

What is Trading 212?

As you’ve probably guessed, Trading 212 is an investment provider, allowing its customers to buy shares, exchange-traded-funds (ETFs) and some precious metals. It currently has a General Investment Account (GIA) and Stocks and Shares ISA.

It also released its own card earlier this year, and started to pay 5.2% APY on uninvested cash

When is Trading 212 launching its Cash ISA?

Initially we thought it’d be coming around 8 June, as it updated policies that will take effect on this date. However, it started to appear on some users apps on 20 May, and there’s now a sign up page on their website too. So if you can’t already get it, you soon will.

Trading 212’s Cash ISA explained

The Trading 212 Cash ISA is pretty packed with features when compared to other Cash ISAs on the market. Here’s the standout information:

  • 5.2% AER variable. This makes it the highest paying Cash ISA on the market at the moment. 
  • Flexible ISA. This means that you can withdraw from it and return money to it freely within the tax year without impacting your ISA allowance. Usually your deposits are all counted up to work out how much of the allowance has been used, but in this case, it’ll be the net amount with withdrawals considered. 
  • FSCS protected. Your deposits will be protected by the Financial Services Compensation Scheme, which means that up to £85,000 of your deposits are protected if Trading 212 were to go bust.
  • Minimum £1. You can save as little as a pound with this account. 
  • Transfers in. You can transfer in your ISA from another provider and you’ll be able to freely transfer between your Trading 212 Stocks and Shares ISA as well.
  • Paperless. No more letters in the post or sending back signed forms. This will be managed completely in the mobile app or on the website. 

What is an ISA?

An individual savings account (ISA) is a tax-free place to save your money. You can save up to the annual limit of £20,000 across all ISAs without having to pay any tax on your interest. Cash ISAs are ones for cash with a set annual interest rate, while you can also get Stocks and Shares ISAs for investing.

We have a full guide on ISAs if you want to learn more about the different types and how they work.

How much can you earn with the Trading 212 Cash ISA?

The Trading 212 ISA will pay 5.2% AER variable. This means the rate can change anytime.

If you save £1,000 for a year at this rate, you’ll earn £52 in total, and of course pay no tax on the interest.

When is interest paid?

Interest is paid daily with the Trading 212 Cash ISA. 

Are there any fees for the Trading 212 Cash ISA?

Nope! This is a fee-free account. 

How to get the Trading 212 Cash ISA

You’ll need a Trading 212 account which you can sign up for here. It is app only. It’s worth finding out if a friend has already got an account as they can offer you a referral link where you’ll both get a free share.

Is the Trading 212 Cash ISA any good?

Zoe’s analysis

While it’s too early to tell how easy this ISA will be to sign up for and manage, it’s a great rate.

The current best easy access savings pays 5.2%, but you’re limited to a balance of £3,000, while the best Cash ISA is Plum’s at 5.17%, but you can only withdraw three times in a year and get a lower rate on transfers.

Savers that don’t already invest might feel like Trading 212 is a little complicated and sometimes intimidating, but if you ignore all the investing stuff, you should get on fine. 

Is the Trading 212 Cash ISA safe?

The Trading 212 Cash ISA is protected by the Financial Services Compensation Scheme (FSCS), which means that your deposits are protected up to £85,000 in the event that Trading 212 goes bust. This is the same as you’d get with a bank or building society. 

Unlike the 5.2% savings interest rate announced earlier this year, the money held in your Cash ISA won’t be held in QMMFs. This means that it’s AER interest, not APY. More on that account here. 

What do customers think of Trading 212?

Over at our sister site Smart Money People, customers of Trading 212 feel that the customer service is excellent, with an easy-to-use interface and app. We can’t yet get any insight into how customers feel about the Cash ISA as it hasn’t been launched yet.

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Trading 212 Cash ISA summary

Trading 212 Cash ISA

Interest rate:5.2% AER variable
Minimum deposit:£1
Withdrawals allowed:Yes
Transfers:Yes
Flexible:Yes

3 thoughts on “Trading 212 Cash ISA: Earn 5.2%

  1. Relatively easy to sign up. Because the interest compounds daily, the true rate is 5.34%. Only downside appears to be that withdrawals take up to 3 business days.

  2. How do i verify with FSCS that it is in fact protected ? Trading 212 is not listed on FSCS website

  3. Thomas J Thomas May 22, 2024 at 7:09 am

    Tues 21St May, I Received The Account Today, Via An Update Through Google Play Store.
    I Would Like To Say The Interest Is Paid And Can Be Viewed Daily, So Even Though The 5.2% Is Variable If It Does Go Lower, Your Previous Interest Payment Will Have Already Been Accredited, And To The Best My Knowledge The Account Is Compounded.

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