Trading212 makes Cash ISA rate change in unwelcome message to customers

Market leading Cash ISA provider Trading212 has announced it is cutting interest rates for savers. The investment platform, which also offers a top rate Cash ISA as well as its stocks and shares ISA and other investment products, has sent an unwelcome message to customers informing them that it is dropping the rate it pays on its Cash from 4.5% to 4.35%.

Trading212's easy access Cash is variable, which means rates can be changed at any time. Trading212 emailed customers on Thursday. In the message seen by the Express, Trading212 said: "We're adjusting our base interest rate for GBP (Pound Sterling), effective as of 1 May 2025.

"Your rates will be as follows:

Trading 212 Cash : From 4.5% to 4.35% variable

Trading 212 Stocks ISA, Invest and CFD: 4.6% (no change)"

Those who open Trading212's Cash via Martin Lewis' Money Saving Expert website can also get a new customer bonus 0.69% for the first 12 months, bringing the rate up to 5.04% for 12 months (although the underlying 4.35% rate could be reduced again in future).

Savers only need £1 to open a Trading212 Cash and can make unlimited withdrawals penalty-free.

Right now, Moneybox is the top pick, just edging out Trading212 with a 5.05% rate including 4% variable plus a 1.05% new customer bonus from MSE for the first 12 months. However, for existing customers, Trading212's underlying 4.35% rate is still higher than Moneybox's underlying 4%.

Savers are rushing to fill up their Cash with the start of the new tax year, protecting up to £20,000 of savings from tax.

Any money held in a cash is not subject to on interest. Normally, you can earn £1,000 in interest tax-free, which is known as your Personal Savings Allowance. Any money you earn in savings interest over that amount is then taxed at 20%. But if it's in an ISA, you don't owe any tax on the interest, and you can still use your full £1,000 allowance on interest on savings outside ISAs, too.

For those earning £50,270, your allowance is cut to £500 and for those on £125,000, your allowance is £0, so ISAs are even more useful for higher earners looking to protect money from tax.

Although the government is looking at cutting Cash ISA deposit limits in future, for the current tax year April 2025 to April 2026, the limit is still £20,000 for now.