Interest on uninvested funds

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21

Itā€™s an HMRCā€™s requirement.

Edit: Iā€™ve got an update - the interest payments will be available in the tax statements.

The plan is to have it available within a month :pray: Iā€™ll update the thread as soon as itā€™s live.

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22

Who has set that requirement?

Interest in a bank savings account is paid before tax, and it is the customerā€™s responsibility to make sure they pay the correct tax. Granted, banks will normally report the interest paid to HMRC as well so HMRC can do their own checks and calcs.

Why are the requirements different for T212? Does T212 also report interest paid and tax paid by each customer to HMRC?

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23

Since the feature is not yet live, I wonā€™t be able to provide more specifics. Iā€™ll get back to you on that as soon as I have more information.

24

Fully agree, Iā€™d be interested to know more about this too. I am very rarely anywhere near the Ā£1,000 savings allowance so itā€™s a real pain if T212 are going to send 20% of the interest I earn to HMRC!

25

Itā€™s important to be transparent on where the money will be invested in so we can understand the risk.

  • A simple account that earns interest?
  • A money market fund?
  • Short term government bonds (of which country/countries)?
  • Bitcoin? :stuck_out_tongue:
26

o yes yes, please let us know once live. love seeing daily interest getting credited into the account. such a nice feeling having pennies drop haha

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27

Hi, I havenā€™t seen any interest payments for unused cash in my ISA account yet.
Is there way to check, as I do not see anything in my history or transactions? Thank you!

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28

We havenā€™t launched the feature yet. Once we do, thereā€™ll be a designated section where you can keep track of the interest you receive.

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29

Thank you! When are you planning to lunch interest payments then?

30

Weā€™re getting closer :raised_hands: Iā€™ll let you know once itā€™s live.

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31

I see this has gone live.

GBP: 1.65% rate paid daily

Not as generous as some providers but still welcome :+1:

https://www.trading212.com/terms/isa

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.

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32

Can someone please clarify:

  1. Has Trading212 always stored our money in banks where they have earned interest?
  2. Is opting out of receiving interest payments also going to make Trading212 not earn the interest either, i.e. they store the money in an interest free account?
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33

Yes, like most brokers, we hold your cash on your behalf in institutional bank accounts and earn interest from it. A portion of that is now paid to you separately.

If you opt-out, we may still earn interest on your balance.

P.S. The feature is now live! Check this thread out for more info :arrow_heading_down:

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34

Ok thanks for clarifying, itā€™s disappointing that you would make the feature live but not allow me to opt out for another month? I donā€™t wish to earn interest, donā€™t know why you would force it on me.

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35

I see where youā€™re coming from, and weā€™ve got you covered, @777GE90.

You can opt-out at any time by using the ā€œDonā€™t pay me interestā€ option from the dashboard. To access it, select the ā€œEarn interest on cashā€ tab from the Account Menu and scroll to the bottom. We also have a dedicated section about this in our article here.

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36

Oh perfect thanks, I asked your support team and they said I need to wait until next month to be able to disable it. Maybe I misread the date.

37

Why would you want to disable it? T212 still earns interest so why not you earn as well?

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38

Iā€™m glad I wasnā€™t alone in wondering. I canā€™t understand why anyone wouldnā€™t want to earn interest.

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40

Shariah investing likely.

Muslims that wish to follow their religious beliefs while investing are forbidden to invest in certain companies (weaponry, alcohol, gambling and the likes), as well as collecting/paying interests (since interests are considered to be a form of abuse).

Less likely, but Iā€™ve seen people thinking that if their money earn interests (because it is sitting on a bank account), it carries more risks for them that if they choose not to get it. :person_shrugging:

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41

Iā€™m not thrilled that the interest you earn on uninvested cash adds to the deposit total on the desktop versionā€¦