Latest news with #CMCInvest
Daily Mail
20-05-2025
- Business
- Daily Mail
IG offers a huge 8.5% rate on cash savings - is it worth taking?
IG has blasted its way into the investing platforms skirmishing to offer savers the most attractive headline interest rates, introducing a boosted 8.5 per cent rate on uninvested cash. IG's new rate* gives savers the opportunity to earn double the base rate on up to £100,000 until the end of August, after which the rate drops to match the Bank of England's benchmark. While the boost only lasts three months, the bumper rate may mean some consider it is worth taking. But cash savers should note that IG is an investment platform and to access the boosted rate, you must both place a trade before 31 May and hold an investment at the end of each of the three months. IG's custody fee could also catch out those who don't intend to actively invest. If you trade at least three times in a quarter then there is no account fee, otherwise IG charges £8 per month. Earlier this month, the Bank of England voted to cut its benchmark interest rate by 0.25 percentage points to 4.25 per cent. While interest on savings isn't necessarily tied to this base rate, providers take changes into account when deciding on rates to offer savers. Some have already cut rates in reaction to the drop. All this follows a heated battle at the beginning of April among a troupe of providers that kept inching up their three-month boosts as the end of the tax year approached. Two providers from that clash are still duking it out: CMC Invest* and Moneybox. Three-month fixed boosts from these providers mean savers opening one of these accounts today should comfortably beat the base rate until August. High earning potential for savers prepared to invest While providers have generally been boosting rates on Isas, IG's 8.5 per cent rate * applies to uninvested cash held in any of its accounts – whether it's an Isa, Sipp or General Investment Account. The catch is that as an investment platform, IG is offering the rate to encourage cash savers to start trading. This means it's more suited to those who have some experience with investing already. New customers (and existing customers who haven't yet placed a trade) must open an account and make an investment before 31 May to be eligible for the offer. You'll receive a boosted rate each month that you hold the investment, until 31 August. You'll also be eligible for the rate for each month you buy or sell an investment or hold one of IG's Smart Portfolios, which are its ready-made investment option. IG says if you opened an account on 9 May, had £20,000 in cash and met all the conditions each month, you'd earn £520 in interest. If you want to invest, IG is just one of many available investment platforms, and because it charges a fee for holding assets if you don't trade, it's potentially a more costly choice than others. This fee could catch out savers going for the boost who don't intend to trade actively. If you make less than three trades each quarter you'll be charged £24, but there's no fee if you make more than three trades. It's important you check the terms and conditions of the deal and read more about the fees that IG charges. Finally you should make sure you open an investment account and not a trading account, which includes spread betting and CFD trading. IG says that 71 per cent of investors lose money when trading in this way on the platform. > Find out more about IG's deal* What alternatives are there for cash savers? Savers can beat the base rate with both CMC Invest* and Moneybox, who are offering more straightforward boosts on cash Isas. Although the earning potential isn't as high, there's no obligation for cash savers to invest. In our view CMC Invest's 5.7 per cent account, including a 0.85 per cent three-month boost, beats Moneybox's because it offers more flexibility around accessing your money. Keep in mind Moneybox has announced that its headline boosted cash Isa rate is going down to 5.46 per cent on 29 May, including a 1.51 per cent three-month bonus. CMC Invest hasn't announced a cut, yet. When looking at cash Isas with short bonuses it is important to consider what the average rate over a whole year will be. CMC Invest's account averages 5.06 per cent over a year (but is yet to be cut) while Moneybox's will average 4.33 per cent after its looming cut. In contrast, Trading 212* has already lowered its rate in response to the Bank of England cut and is paying 4.86 per cent, including a 12 month 0.76 per cent bonus. For more alternatives you can also read our regularly updated round-up of our favourite cash Isas.
Daily Mail
13-05-2025
- Business
- Daily Mail
Five of the best cash Isas
Products featured are independently selected by This is Money's specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence. A cash Isa is an essential account for savers that protects you from tax on your interest. This means that your pot can grow without tax dragging it back - something that is especially important for the growing number of 40 per cent taxpayers. This is Money's savings experts scour the market for the real best cash Isa deals - looking for top rates and accounts that come without catches to trip you up. Below you can find a run down of our top deals and you can check all the best cash Isa rates in our savings tables. CMC Invest* easy-access - 5.7% (0.85% bonus for 3 months) - Facts: £1 to open, no limit on withdrawals, short bonus - Transfers in: Yes - Flexible: Yes Trading 212* - easy access - 4.83% with this link - Facts: £1 to open, no limit on withdrawals, 0.73% bonus for 12 months - Transfers in: Yes - Flexible: Yes Moneybox easy access - 5.71% (1.51% bonus rate for 3 months) - Facts: £1 to open, limited to three withdrawals a year, short bonus - Transfers in: Yes - Flexible: No Kent Reliance one-year fix - 4.25% - Facts: £1,000 to open - Transfers in: Yes - Flexible: No Cynergy Bank two-year fix - 4.18% - Facts: £1,000 to open - Transfers in: Yes - Flexible: No
Daily Mail
09-05-2025
- Business
- Daily Mail
Beat the base rate cut: Secure a cash Isa savings BONUS before it's too late
The Bank of England voted to reduce base rate yesterday but cash Isa bonuses are still available from two top providers - for now. When you open one of these products the bonus is locked-in for three months, meaning you can secure a higher level of interest until August. Providers take changes in the base rate into account when deciding on the interest to offer savers. And with the base rate falling by 0.25 percentage points to 4.25 per cent, it's likely that Isa providers will soon start cutting rates on their savings products. The pace of base rate cuts is only expected to ramp up. Two members of the Bank of England's Monetary Policy Committee voted for a larger 0.5 percentage point drop. Chip is one provider that's already announced a rate reduction across its savings accounts. CMC Invest* and Moneybox are both offering three-month bonuses on cash Isas. Even though these providers may cut the underlying rates, the bonus rates are fixed for three months. But you should act quickly if you want to open one of these accounts – these providers' terms and conditions mean they can remove or reduce the bonus rate for new customers at any time. Here's how the accounts compare. The top paying Isa rivals There are currently two accounts topping the cash Isa tables with bonus rates but in This is Money's view, one is considerably better than the other. CMC Invest* Isa – flexibility and a top underlying rate Bonus rate: 0.85% Current underlying rate: 4.85% Current boosted rate: 5.7% Open with: £1 Although the boosted rate on CMC Invest's Isa* is just beaten by Moneybox, it's still our top pick for savers. This is because the underlying rate is 0.65 per cent higher than Moneybox at the moment, so it reverts to a higher rate, plus the account offers much more freedom around withdrawing money. It is a flexible Isa, which means you can withdraw money and replace it in the same tax year without affecting your allowance. There aren't any restrictions around withdrawals either – you won't be penalised for taking money out of your account. Moneybox Isa – higher rate but restricted withdrawals Bonus rate: 1.51% Current underlying rate: 4.2% Current boosted rate: 5.71% Open with: £500 This headline Isa rate from Moneybox edges CMC Invest but the underlying rate is lower. You need more cash to open an account plus it's not a flexible Isa, meaning you'll use up your allowance when you replace money you've withdrawn. Moneybox penalises savers who make more than three withdrawals a year by reducing the rate to 0.75 per cent. This rate also applies when the balance falls below £500. But there can be a benefit to restrictions like this: they provide an incentive to keep your cash locked away if you think you'll otherwise be tempted to make withdrawals. If you're looking for more top cash Isa picks, we have a regularly updated round-up that reveals our five of our favourites.
