Trading 212 Raises Cash Isa Rate to 4.67% Amidst Increased Competition
The investment platform has adjusted its cash Isa rate twice in a single day, now leading the market for easy-access accounts.
Trading 212 has increased its cash Isa rate to 4.67%, positioning itself at the top of the best-buy tables for easy-access accounts. This marks the second adjustment to the rate by the platform within a single day, signaling a renewed competition among financial providers for savers' funds.
The boost to 4.67% includes a fixed bonus of 1.07% for 12 months. However, this promotional rate is applicable only to funds deposited within the current tax year. Contributions from previous tax years will receive the standard rate of 3.6%.
This move by Trading 212 comes as other providers also enhance their offerings. Moneybox has raised its cash Isa rate to 4.65% variable, which incorporates a 1.2% bonus for 12 months. Plum has also increased its cash Isa rate to 4.6% variable, including a 2.06% bonus for the same duration.
Comparing Cash Isa Options
Trading 212 and Plum both offer flexible Isas, allowing customers to withdraw and replace funds within the same tax year without affecting their Isa allowance. Both providers require a minimum deposit of just £1 to open an account.
While Trading 212's standard rate of 3.6% is higher than Plum's rate after its 12-month bonus expires, Plum's cash Isa rate falls to 2.54% after the initial bonus period. For those looking to transfer existing Isa funds, Plum offers a 4% variable rate, including a 1.46% boost for 12 months, which may be more advantageous than Trading 212's standard 3.6% rate for transferred funds.
Moneybox provides a 4.65% rate with a 1.2% bonus, but its underlying rate is 3.45%. Unlike Trading 212 and Plum, Moneybox's Isa is not flexible, meaning withdrawals and replacements can impact the Isa allowance. Furthermore, Moneybox imposes stricter conditions, including a minimum deposit of £500. Balances below this minimum or more than four withdrawals annually can cause the rate to drop significantly to 0.75%. Moneybox also offers a separate open-access cash Isa with fewer restrictions and a £1 minimum deposit, but at a lower rate of 3.8%, including a 0.55% bonus for 12 months.