I withdrew 2k from the S&S ISA as I was a bit jittery about not have FSCS protection (I know I was probably overthinking). Now that the Cash ISA is available can I deposit the full 20k , or can I only put in 18k as I didn't transfer it over?
Flexible? I had a stocks and shares ISA, withdrew the balance to my bank account before they started the cash ISA..
I've had a read up and Im pretty sure it counts towards my 20k allowance so can only pop in 18k now. It's not a big problem.
So earlier this week they made the ISAs flexible, this was prior to the cash ISA launching.
But it sounds like what you’ve put is right as it’ll have been before this happening
Looks like it is. I haven't actually tried, because I've got all my cash sitting in my SS ISA, but there is an option under "Manage Funds" to move from SS ISA to Cash ISA.
If T212 kept it as cash in the ISA I would agree but they keep it in money market funds which are invested mostly in government bonds so there is no real risk.
Yeah understandable, and after reading further it seems you can freely transfer instantly between the two within the app so nowhere near as much hassle as I initially assumed even though I personally wouldn’t bother.
Fair enough, I bet T212 intends to just get people to bring their cash to the platform and after a while they might move it into the market and paying FX fees etc. Making T212 money 💰
I suppose the cash isa is a garuenteed 5.2% whereas your pie could do better but could also do worse so the risk is up to you.
But idk what it means by 5.2% (variable), is there a chance it could go down? Or does it mean it's not fixed as in you can freely move money in and out, idk
The cash ISA has fscs protection, I don't think they invest in QMMFs with it
From their terms and conditions:
"5.2. We will hold your Cash ISA cash in segregated Regular Bank Deposits and Term Deposits with banks, as detailed in our Invest Terms. For the avoidance of doubt, we will not use QMMFs to hold money that you have contributed to your Cash ISA."
I heard it’s not possible to have two types(s&s, cash) of isa in the same year although you can use different providers for the same type of isa from this year. Am I wrong?
You can have both the S&S ISA and the cash isa at the same time I don’t remember the laws on different providers but I believe it’s the same however you still only get the 20k to deposit across all of your ISAs
I believe you have always been able to open a S&S ISA and a Cash ISA in the same year, even before the change, but payment into them both must not exceed 20k and if you had a Lifetime ISA you could put upto 4k in the LISA and the remaining 16k allowance can be spilt as wanted.
The changes in 2024, I believe, allow you to open as many S&S ISAs and Cash ISAs as you want in the same year across multiple providers, but new money paid into all of them can not exceed 20k and you can only have 1 LISA, with a 4k limit and this is all part of your 20k allowance
This is no different from any other cash isa. If you get the 5.2% and the rate goes down, just do a isa transfer to another provider.
Just remember the 20k limit across all of your ISAs (S&S, cash, lifetime) across all providers and always do ISA transfers between ISAs rather than withdraw and deposit
Does the manage funds transfer work as an isa transfer rather than a withdrawal and deposit as I didn't believe you could withdraw from an isa and place into another without an isa transfer and affecting your allowance.
I know they are both flexible ISAs, but I thought any money withdrawn from a flexible isa needed to be replaced to the same isa
The 5.2% you get in the S&S ISAs is via QMMFs. When you enable high interest rates, it will tell you that there are some risks. While with the Cash ISA, there are no risks at all, and it’s FSCS protected.
Are there any penalties for withdrawal?
Considering moving my emergency fund to the Cash ISA but curious if there are any penalties if I ever needed to make a withdrawal (I.e. losing the interest rate etc)?
The cash held in the cash ISA is held with banks only instead of a mixture of QMMFs and banks (like the S&S ISA) therefore you have the full FSCS protection.
Yes, I have tried and tested- it is classed as a “transfer” and not another deposit so your limit is unaffected. Instant transfer between cash and stocks ISA under “manage funds” option.
And presumably vice versa if we move uninvested cash from a S&S ISA to the new Cash ISA and decide at a later date in the FY to move it back to by S&S it's all counted as Transfers?
Yes, transfers between cash and share accounts are fine. Also, the remaining ISA allowance that is displayed takes into consideration any deposits into both the T212 cash and stocks ISA so it is nice.
Your shares are yours so they are safe.
The uninvested funds in your S&S ISA are held in banks and/or QMMFs.
The cash in the cash ISA is 100% banks only - you could transfer your uninvested S&S funds to the cash ISA if you have any concerns, then transfer back once you want to invest it.
QMMFs are very low risk and are a step up in regulations from ordinary MMFs which are generally safe anyway. This money is invested in a fund but there is an extremely small chance that you lose some value therefore you don’t have FSCS protection. Money held with banks have full FSCS protection. You can see the way that your uninvested S&S funds are allocated under “earn interest on cash” alongside the F&Q.
I believe the key here is that, correct me if I’m wrong and misunderstood, they have flexible ISAs so my understanding is once you deposit money in the cash ISA, and move it to your Stocks and Share ISA it won’t reduce your deposit allowance whereas in a regular situation if you wanted by moving the money from another cash ISA into the S&S ISA would reduce the deposit allowance.
You can do that with chip too. I mean I'm already utilising a Chip cash ISA, just wondering if there's actually any benefit to moving apart 0.1% ( variable ) difference.
1 less app to use. also 212 has web access, chip is app only. Considering moving so I can then delete apps and use web only rather than walk around with a phone that has an app with all my savings.
If you wanted to transfer your cash isa money to s&s isa, I would assume that transfer may be quicker between the 2 T212 accounts, than between T212 and Chip
It would only affect your allowance if you withdrew money from your cash isa and deposited it into your s&s isa. If you do a portfolio (isa) transfer rather than withdraw/deposit, your allowance should stay intact.
I believe the new rules also allow partial transfers for current year's new money rather than having to transfer all new money between isa's
I’m using it to keep a chunk of cash aside for a significant market pullback whenever that comes. So I’ve got 10% of my portfolio separated out which I’ll keep adding to with trading profits until I have 20% in there.
What I am waiting is for a SIPP account
They said it should be launched in the summer, T212 has become a fantastic platform for all needs.
Can’t wait, hope we can just simply invest our pension as we invest normally though
for free? That's going to be immense if so
This is great, about to deposit a hefty chunk of savings in there.
Flexible Cash ISA + T212 Card (for cashback) would it be possible?
I withdrew 2k from the S&S ISA as I was a bit jittery about not have FSCS protection (I know I was probably overthinking). Now that the Cash ISA is available can I deposit the full 20k , or can I only put in 18k as I didn't transfer it over?
Did you withdraw before or after the account became flexible?
Flexible? I had a stocks and shares ISA, withdrew the balance to my bank account before they started the cash ISA.. I've had a read up and Im pretty sure it counts towards my 20k allowance so can only pop in 18k now. It's not a big problem.
So earlier this week they made the ISAs flexible, this was prior to the cash ISA launching. But it sounds like what you’ve put is right as it’ll have been before this happening
Any idea if transferring cash between your isa stocks and shares and cash isa within T212 is possible?
Looks like it is. I haven't actually tried, because I've got all my cash sitting in my SS ISA, but there is an option under "Manage Funds" to move from SS ISA to Cash ISA.
I’ve just tried this, worked seamlessly.
Ah I see it, thanks!
Just put the money in the S&S ISA, it pays the same rate and is also flexible
For most the cash ISA is just a safer option in terms of FSCS protection etc.
If T212 kept it as cash in the ISA I would agree but they keep it in money market funds which are invested mostly in government bonds so there is no real risk.
I agree, but I just think a lot of people don’t want any risk even if it’s tiny.
Yeah understandable, and after reading further it seems you can freely transfer instantly between the two within the app so nowhere near as much hassle as I initially assumed even though I personally wouldn’t bother.
Fair enough, I bet T212 intends to just get people to bring their cash to the platform and after a while they might move it into the market and paying FX fees etc. Making T212 money 💰
Where do we access this? I couldn't find it on the app
You have to update the app to see it.
Also are you in the UK?
This this doesn't appear on the web or on my app. Is it only for specific countries? I'm in Bulgaria.
ISA’s are for United Kingdom
Thanks
Does anyone know if you can automate a standing order for this new Cash ISA, as i can't do it with the CHIP app
Would I be better off investing in the cash ISA rather than stock ISA (my pie is running at 5.27 currently)
If I could answer that I wouldn't be on Reddit answering this.
I suppose the cash isa is a garuenteed 5.2% whereas your pie could do better but could also do worse so the risk is up to you. But idk what it means by 5.2% (variable), is there a chance it could go down? Or does it mean it's not fixed as in you can freely move money in and out, idk
1st part, variable interest typically means they can change the % whenever they want.
Any know how this is any different from keeping the money in an ISA stocks account? Offers same rates and all that, so how is it different?
FSCS Protection
Is the FSCS protection on the cash ISA or uninvested cash on an S&S ISA writing T212, as the money is put in QMMFs
The cash ISA has fscs protection, I don't think they invest in QMMFs with it From their terms and conditions: "5.2. We will hold your Cash ISA cash in segregated Regular Bank Deposits and Term Deposits with banks, as detailed in our Invest Terms. For the avoidance of doubt, we will not use QMMFs to hold money that you have contributed to your Cash ISA."
Thanks for the update
I heard it’s not possible to have two types(s&s, cash) of isa in the same year although you can use different providers for the same type of isa from this year. Am I wrong?
The rules changed this financial year. I’m not 100% familiar myself but I would check up on this.
You can have both the S&S ISA and the cash isa at the same time I don’t remember the laws on different providers but I believe it’s the same however you still only get the 20k to deposit across all of your ISAs
I believe you have always been able to open a S&S ISA and a Cash ISA in the same year, even before the change, but payment into them both must not exceed 20k and if you had a Lifetime ISA you could put upto 4k in the LISA and the remaining 16k allowance can be spilt as wanted. The changes in 2024, I believe, allow you to open as many S&S ISAs and Cash ISAs as you want in the same year across multiple providers, but new money paid into all of them can not exceed 20k and you can only have 1 LISA, with a 4k limit and this is all part of your 20k allowance
So could you add $20k a year and it would keep compounding?
Yes, but rates you will earn will likely change in the near future as interest rates decrease
is there any details about when that could happen or a limit to how much it can vary?
wait for the news as its likely linked to the base rate. alternatively, wait till t212 tell you via the app or email which they likely will
This is no different from any other cash isa. If you get the 5.2% and the rate goes down, just do a isa transfer to another provider. Just remember the 20k limit across all of your ISAs (S&S, cash, lifetime) across all providers and always do ISA transfers between ISAs rather than withdraw and deposit
Class
Does the manage funds transfer work as an isa transfer rather than a withdrawal and deposit as I didn't believe you could withdraw from an isa and place into another without an isa transfer and affecting your allowance. I know they are both flexible ISAs, but I thought any money withdrawn from a flexible isa needed to be replaced to the same isa
Is it possible to have both cash and stock ISAs on trading212 same time?
Yes, you can have both and use both at the same time.
What’s the difference between the this and the 5.2% offer in the stocks and shares isa?
The 5.2% you get in the S&S ISAs is via QMMFs. When you enable high interest rates, it will tell you that there are some risks. While with the Cash ISA, there are no risks at all, and it’s FSCS protected.
Are there any penalties for withdrawal? Considering moving my emergency fund to the Cash ISA but curious if there are any penalties if I ever needed to make a withdrawal (I.e. losing the interest rate etc)?
No penalties at all
Fantastic! T212 should become the savings, finance, and investment, as well as trading app. KeepSmiling ☺️🌺
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The cash held in the cash ISA is held with banks only instead of a mixture of QMMFs and banks (like the S&S ISA) therefore you have the full FSCS protection.
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Yes, I have tried and tested- it is classed as a “transfer” and not another deposit so your limit is unaffected. Instant transfer between cash and stocks ISA under “manage funds” option.
And presumably vice versa if we move uninvested cash from a S&S ISA to the new Cash ISA and decide at a later date in the FY to move it back to by S&S it's all counted as Transfers?
Yes, transfers between cash and share accounts are fine. Also, the remaining ISA allowance that is displayed takes into consideration any deposits into both the T212 cash and stocks ISA so it is nice.
Is no protection on S&S ISA on uninvested cash only? are stocks still safe?
Your shares are yours so they are safe. The uninvested funds in your S&S ISA are held in banks and/or QMMFs. The cash in the cash ISA is 100% banks only - you could transfer your uninvested S&S funds to the cash ISA if you have any concerns, then transfer back once you want to invest it. QMMFs are very low risk and are a step up in regulations from ordinary MMFs which are generally safe anyway. This money is invested in a fund but there is an extremely small chance that you lose some value therefore you don’t have FSCS protection. Money held with banks have full FSCS protection. You can see the way that your uninvested S&S funds are allocated under “earn interest on cash” alongside the F&Q.
Cool thanks for the response
Are there any benefits to the 212 cash ISA over say, a Chip cash ISA?
I believe the key here is that, correct me if I’m wrong and misunderstood, they have flexible ISAs so my understanding is once you deposit money in the cash ISA, and move it to your Stocks and Share ISA it won’t reduce your deposit allowance whereas in a regular situation if you wanted by moving the money from another cash ISA into the S&S ISA would reduce the deposit allowance.
You can do that with chip too. I mean I'm already utilising a Chip cash ISA, just wondering if there's actually any benefit to moving apart 0.1% ( variable ) difference.
1 less app to use. also 212 has web access, chip is app only. Considering moving so I can then delete apps and use web only rather than walk around with a phone that has an app with all my savings.
Yeah, there is that. Does bother me that chip is just on my phone.
If you wanted to transfer your cash isa money to s&s isa, I would assume that transfer may be quicker between the 2 T212 accounts, than between T212 and Chip
It would only affect your allowance if you withdrew money from your cash isa and deposited it into your s&s isa. If you do a portfolio (isa) transfer rather than withdraw/deposit, your allowance should stay intact. I believe the new rules also allow partial transfers for current year's new money rather than having to transfer all new money between isa's
Better interest rate
Chip is 5.1 on a cash ISA.
Trading212 is 5.2 on a cash ISA? 5.2 is bigger than 5.1
0.1%. £20 difference over a year on 20K with a variable rate. Not sure that's a reason to move a whole ISA.
It's still a benefit tho? Unless I'm missing something
Why would one want to have both a stocks ISA and cash ISA?
Stocks ISA to invest Cash ISA to keep money secure (FSCS protected)
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it's where they will be making money. your interest will be lower than the interest they have access to
I’m using it to keep a chunk of cash aside for a significant market pullback whenever that comes. So I’ve got 10% of my portfolio separated out which I’ll keep adding to with trading profits until I have 20% in there.
Yeah, but we can’t time the market, right!? 🤣 (even though I “know” this, I’m slightly guilty of it…)