What’s a qualifying money market fund (QMMF)?
A qualifying money market fund holds short-term, low-risk financial assets, aiming to maintain a stable value. These funds are designed to be safe places to keep your cash while earning a bit of interest, and they're often used for the cash portion of retirement or investment accounts. They're called "qualifying" because they meet certain regulations that allow them to be considered as cash equivalents.
How can I get the higher interest?
After the 11th of January, go to your interest on cash dashboard, click on the unlock higher interest banner and tap enable.
No commitments, you can disable at any time.
What happens if I don’t opt in for the higher interest?
In case your account is opened prior to 11.12.2023, you will continue receiving interest until 12.02.2024. If you want to receive interest after this date, you’ll need to enable it manually from the dashboard.
Is my money still protected?
Where we hold your money with a bank, clients of Trading 212 UK Ltd. are protected by the FSCS up to a limit of £85,000. Clients of Trading 212 Markets Ltd. are protected by the ICF up to a limit of €20,000 and are additionally insured up to €1M by Lloyd’s of London. Learn more about how your money is protected here.
Money placed with a QMMF is treated as an investment and not as money held with a bank. In the unlikely event that the QMMF fails to maintain their low-risk strategy, as with any investment, the protection will not be available. We carefully select all QMMFs to ensure that they are highly liquid, stable in value and maintain their highly regulated status.
Can QMMFs go down in value?
If a QMMF in which your cash is invested in goes down in value, this may affect the value of your uninvested cash held in the QMMF. However, to manage this risk, we select only high-quality QMMFs and we monitor them frequently. Learn more about the risks of QMMFs and how we manage them here.