Is Trading 212 Cash ISA Safe?

While trading 212 doesn’t offer the Innovative Finance ISA (IFISA) like a number of other providers, their ISA options are still pretty flexible. The platform allows you to move money between the cash and stocks and shares ISA as long as the combined total doesn’t exceed your annual allowance. This flexibility could be useful for savers who want to keep an emergency fund separate from their investments. Is Trading 212 Cash ISA Safe?

Is Trading 212 Cash ISA Safe? What UK Investors Need to Know

It’s worth pointing out that your savings are protected by the Financial Services Compensation Scheme (FSCS) up to 85,000, just as they would be in any other bank or building society. This is thanks to the fact that your ISA funds are held in segregated accounts with major UK banks, such as Barclays and Lloyds. This means your money is ring-fenced from Trading 212’s day-to-day business and won’t be used to pay off the firm’s debts in the event of bankruptcy.

In addition to the FSCS protection, the Trading 212 ISA also pays an attractive interest rate of 4.35% AER at the time of writing. This makes it one of the highest-paying paying flexible, easy-access cash ISAs on the market at the moment. What’s more, the account is flexible, and you can withdraw money and redeposit it without impacting your annual ISA limit. This is a welcome feature that sets it apart from many of its competitors, including Zopa and Chip*. It’s important to note, though, that the interest you earn will only be generated on the portion of your savings not invested in QMMFs.