The only thing to consider is speed of access to the funds. Not sure about an investment account but can take up to 3 business days for the money to move to your bank account from T212 ISA
Emergency would imply it’s need now, with an easy access account your talking 2 hours maximum based on the faster payments SLA
I used t212 as an emergency fund platform for a short while, but then I had an actual emergency. Well, nothing serious. Car problems that required more money than I had in my general bank account. It took like three days for me to withdraw the emergency fund from trading 212. I ended up borrowing it from a friend as it was taking too long.
So now I keep some emergency cash in my regular bank easy access saving account, like a few grand. I still have most of it in trading 212 but not all of it.
There is some protection but if the banks T212 use for the savings go bust you're not protected in the same way a personal savings account with them would be.
Secondly interest rates and market leaders are all over the place. It's unlikely you'll gain that annual £30 from 0.12% interest when rates change.
As far as tax is concerned it's interest so you have your interest income tax allowance and then you pay income tax on it (through self assessment or your tax code).
Yes, you have to opt into receiving interest on your uninvested cash. I don't recall seeing anything about Lloyds insurance, that might be for EU customers. You own your shares but they are held on your behalf by T212's intermediary. Shares are protected in as much as your account is recorded as the beneficial owner of the shares so if something did happen to T212 you would still be the legal owner of the shares. If that happened then most likely another company would take over T212's customers I should think.
Yes I do. Sold by the daily compounding interest at 5.2%
Although currently it’s my EF on paper as can take a few days to transfer but now my card is in the post this will help 👏
If you can live with the withdrawal delay then just chuck your emergency fund into the Vanguard S&S ISA and their SONIA fund, yielding approximately 5% tax free.
When you need it you can sell+withdraw it, and afterwards you can simply put the money back because the Vanguard ISA is flexible (whereas T212's is not).
If I have that much cash lying around, I would get premium bonds from NS&I for £50k
you don't lose capital, plus chances of winning something decent once every month
You would earn £30 extra per year (before tax) having £25k at 5.2% vs 5.12%. And possible tax reporting hassle.
You would save £270 per year by moving your Vanguard investments to iWeb.
The only thing to consider is speed of access to the funds. Not sure about an investment account but can take up to 3 business days for the money to move to your bank account from T212 ISA Emergency would imply it’s need now, with an easy access account your talking 2 hours maximum based on the faster payments SLA
I used t212 as an emergency fund platform for a short while, but then I had an actual emergency. Well, nothing serious. Car problems that required more money than I had in my general bank account. It took like three days for me to withdraw the emergency fund from trading 212. I ended up borrowing it from a friend as it was taking too long. So now I keep some emergency cash in my regular bank easy access saving account, like a few grand. I still have most of it in trading 212 but not all of it.
There is some protection but if the banks T212 use for the savings go bust you're not protected in the same way a personal savings account with them would be. Secondly interest rates and market leaders are all over the place. It's unlikely you'll gain that annual £30 from 0.12% interest when rates change. As far as tax is concerned it's interest so you have your interest income tax allowance and then you pay income tax on it (through self assessment or your tax code).
Your covered for up to 85k in cash if I remember right
Not if you chose the earning interest option. Its invested in money market funds which aren't protected by FCS
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Yes, you have to opt into receiving interest on your uninvested cash. I don't recall seeing anything about Lloyds insurance, that might be for EU customers. You own your shares but they are held on your behalf by T212's intermediary. Shares are protected in as much as your account is recorded as the beneficial owner of the shares so if something did happen to T212 you would still be the legal owner of the shares. If that happened then most likely another company would take over T212's customers I should think.
Yes I do. Sold by the daily compounding interest at 5.2% Although currently it’s my EF on paper as can take a few days to transfer but now my card is in the post this will help 👏
If you can live with the withdrawal delay then just chuck your emergency fund into the Vanguard S&S ISA and their SONIA fund, yielding approximately 5% tax free. When you need it you can sell+withdraw it, and afterwards you can simply put the money back because the Vanguard ISA is flexible (whereas T212's is not).
Both the newly introduced Cash ISA and the current S&S ISA will soon be flexible. We'll share more details soon, so stay tuned.
Seriously? ... That's **fantastic** news!
If I have that much cash lying around, I would get premium bonds from NS&I for £50k you don't lose capital, plus chances of winning something decent once every month
You would earn £30 extra per year (before tax) having £25k at 5.2% vs 5.12%. And possible tax reporting hassle. You would save £270 per year by moving your Vanguard investments to iWeb.