Earning interest on cash FAQs and exclusions

Interest on Account Cash Balances Guid</span</spanFrom 1 April 2025, we'll pay interest on uninvested cash balances for eligible clients. This guide explains how the interest payments work and whether you qualify.

Note that this only applies to cash held in GIA, ISA or SIPP accounts. Smart Portfolios and leveraged accounts are excluded.

How does it work?

We'll pay interest at 4.5% AER variable on uninvested cash in your account, subject to the following conditions:

Interest is paid on uninvested cash only
Interest applies only to GBP balances (not other currencies)
Maximum eligible balance is £100,000 across all physical accounts (GIA, ISA, SIPP)
Interest is calculated on daily balances throughout the calendar month
Interest payments are made in the following month

Eligibility requirements

To earn interest in a calendar month, you must have at least one of the following:

An open share position at any point during the month
At least one buy or sell trade during the month
An active Smart Portfolio

How interest is calculated

Interest is calculated using this formula: Daily interest = Daily balance × (4.5%/365)

The interest rate of 4.5% AER variable is subject to change. We'll notify you of any changes to the rate.

Interest payment examples

Example 1: Single account with large balance

If you have £500,000 in one share dealing account with an active Smart Portfolio:

Only the first £100,000 earns interest (capped amount)
Monthly interest: (£100,000 × 4.5%) ÷ 12 = £375

Example 2: Multiple accounts under the cap

If you have £25,000 in an ISA and £20,000 in a SIPP (total £45,000) with active trading:

ISA account: (£25,000 × 4.5%) ÷ 12 = £93.75
SIPP account: (£20,000 × 4.5%) ÷ 12 = £75.00
Total monthly interest: £168.75

Example 3: Multiple accounts exceeding the cap

If you have £50,000 in each of three accounts (total £150,000) with active trading:

Only £100,000 total is eligible for interest (capped amount)
Each account represents 33.33% of your total balance
Interest will be distributed proportionally across accounts
Total monthly interest on cap: £375
Each account receives approximately £125

Example 4: Multi-currency account

If you have multiple currencies in your account:

Only GBP balances earn interest
Other currencies (USD, EUR, etc) earn no interest

Exclusions

What if I don't want to receive interest on my cash balance?

If you wish to opt out, please contact us with a specific request to opt out. We'll then deactivate the interest feature from your account.

When will interest be paid?

Interest is calculated daily based on your cash balance throughout the calendar month and is paid out in the following month.

What if I don't trade in a particular month?

If you don't have any trading activity during a calendar month, you won't earn any interest for that month.

When does the interest program begin?

The program starts in April 2025, with the first interest payments being made in May 2025.

What if I open an account mid-month?

Interest will be calculated from the day your account is opened, provided you meet the activity requirements.

Does money tied up in open positions earn interest?

No, only uninvested cash earns interest. Running profits from positions do not earn interest.

I have more than £100,000 cash across my accounts. Will it all earn interest?

No, interest is capped at a maximum cash balance of £100,000 across all accounts. Any amount above this will not earn interest.

I have funds in multiple currencies. Will all of the accounts earn interest?

No, interest is only paid on GBP balances. Other currencies do not earn interest.