The uninvested cash in your account can now earn interest every day.
Where Can I see the feature?
1. Go to 'Menu' tab in your account.
2. Select 'Earn Interest on cash'.
How does it work?
You earn interest daily on the uninvested cash in your account.
Like most brokers, Trading 212 earns interest on the cash it holds on your behalf in institutional bank accounts. We have decided to pay half of this interest forward to you.
What if I don’t want to earn interest?
The option will be enabled on your account by default. You can opt-out at any time by scrolling to the dashboard's bottom and clicking 'Don't pay me interest'. Then it is only needed to confirm your desire:
Note: If you opt-out, Trading 212 may still earn interest on your balance.
Which account types are eligible for interest
All Invest and ISA accounts, denominated in GBP, EUR or USD.
What are the current interest rates?
See our Terms and fees for the current interest rates.
You can find the minimum interest rates we will pay to you in the Invest Terms.
Are there any minimum or maximum balance requirements to earn interest?
No.
How is the interest calculated?
We multiply your end-of-day uninvested cash balance by the current annual interest rate (APY), and divide it by 365. This calculation occurs daily, including weekends and public holidays.
For example, if you have £730 in uninvested cash and the interest rate is 1%, your daily interest would be calculated as follows:
£730 x 0.01 / 365 = £0.02
How often does interest get credited to my account?
Interest payments are issued daily, rounded down to the nearest cent, with sub-cent/penny amounts carried forward.
If the daily interest falls below a cent/penny, it will accrue until reaching a cent or more, at which point a payment will be issued.
Do I have to pay taxes on the earned interest?
This depends on your tax residency and the type of account you hold with us. Please note that this is not personal tax advice and in case of doubt, you should contact a tax advisor or the relevant tax authorities. In summary:
Trading 212 UK Limited Customers
If you are an ISA account holder, your interest does not suffer any withholding tax and you do not owe any additional tax.
- If you are an Invest account holder, regardless of your tax residency, we will automatically withhold 20% tax from the interest owed to you, which is then paid to the UK tax authority (HMRC);
- If you are a UK tax resident, and depending on your personal circumstances, you may need to pay more tax (via your personal tax return) or may be eligible for a refund of tax. You will need to contact HMRC directly with any specific taxation questions as we are unable to offer personal tax advice.
If you are a non-UK tax resident, and depending on your personal circumstances, you may need to pay additional tax, while your ability to receive a refund will depend on whether there is a double taxation treaty between the UK and your country of residency. In both cases, you should contact the relevant tax authorities with any queries.
Trading 212 Markets Limited customers
- If you are tax resident in Cyprus, then your interest will be subject to a 30% withholding tax, in addition to GHS tax which is currently 2.65%.
If you are tax resident anywhere else, your interest will be paid to you gross, and you will be exempt from any withholding tax in Cyprus. However, your country of residency may levy a tax on the earned interest.
Depending on your personal circumstances (i.e. tax residency), you may need to pay additional tax or receive a refund. In both cases, you should contact the relevant tax authorities with any queries.
Will I earn interest if my account is in a currency other than GBP, EUR or USD?
Currently, we offer interest on uninvested cash for accounts held in EUR, GBP, or USD. We understand that this may not cover every client's preferred currency. As we work on expanding our offerings, we will keep you informed of any future updates regarding the inclusion of additional currencies for earning interest.