Investment platform offers market-leading 4.68% interest Cash ISA | Personal Finance | Finance
Savers have been presented an “attractive” ISA option as firms compete to offer the best rates. Trading 212’s account ensures holders earn 4.68% AER – including a bonus of 1.08% for the first 12 months only for current tax year contributions – (variable tracker rate).
The company highlights that its interest rate changes in line with the Bank of England’s (BoE) base rate minus 0.15%, and uses an example that the Cash ISA interest rate will be 4.10% AER when the BoE base rate is at 4.25%.
Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “With the new tax-year fast approaching, ISA season is coming into full swing. Providers will be competing fiercely to make their deals more enticing to new customers. This year may be especially competitive as the 2026/27 tax-year marks the final year for those under 65 to utilise their full £20,000 limit.
“Trading 212 offers a market-leading 4.68% AER and is likely to be an attractive option for savers that are looking to maximise their tax-free savings.”
She added: “Savers depositing their full £20,000 allowance could earn over £900 in interest over a year, whereas someone with the average easy access ISA paying 2.67% would earn around £400 less. However, it’s crucial that savers look beyond the headline rate, as the rate is inclusive of a 1.08% bonus for the first 12 months and deposits can only benefit from this boost for current tax-year contributions, meaning previous tax-year funds only qualify for the core 3.60% rate.
“Adding to the deal’s appeal, savers only need as little as £1 to open the account, making it widely accessible to many savers, including those just starting out. Interest is paid monthly, which may be a bonus for those wanting a small income boost. Additionally, this account is ideal for those that may need to dip into their pots regularly as the deal permits unlimited withdrawals without any penalty.”
Despite being offered by a trading platform, the Cash ISA will function as expected, with funds securely held in a segregated account and protected by the Financial Services Compensation Scheme (FSCS) up to £85,000.
Andrew Prosser, head of Investments at investing platform InvestEngine, had some advice for those with an interest in opening an ISA.
He said: “If you don’t use your ISA allowance before the end of the tax year, you can’t carry it forward, so that opportunity to shield money from tax is gone forever. Even if you can’t afford to contribute the full £20,000 allowance, it’s still worth putting in what you can because the benefits compound over time.
“Every pound invested within an ISA grows free from tax, which can make a significant difference to long-term returns. For people who have spare savings sitting outside tax wrappers, topping up an ISA before the tax year ends can be one of the simplest ways to make sure their money can earn interest or returns while still being tax-efficient.”
