Best Platform for Uninvested Cash

Antonia says

This is a remarkably good rate from a platform that has a lot going for it, and is well-suited to beginners.

The downside is that you can only apply this rate to the first £3,000 of your uninvested cash. And you’ll need to be a subscriber to Freetrade’s top-tier Plus account, which comes with a cost: £9.99 per month.

Antonia says

XTB is offering a very strong rate on up to £100,000 of your uninvested cash.

There are no account fees or plan subscriptions to access this rate, so anyone can take advantage of it. You’ll just need to maintain one open position, or trade once per month. But that’s not much to ask for a better rate than you’re likely to receive from most banks on cash savings.

Antonia says

Dodl was launched by AJ Bell in 2022 to be an easier-to-use, lower-cost, app-only version of its main platform. So although you’re getting a reduced number of investment options, you’re getting the excellent customer service, the trust factor, and great research and education tools that come with AJ Bell.

You’ll also get a fantastic rate of interest on any uninvested cash you hold in either a Stocks and Shares ISA or Lifetime ISA with Dodl.

The downsides? It doesn’t unfortunately apply to the pension or General Investment Account.

And, although Dodl offers commission-free trading, they charge a 0.15% account fee with a £1 minimum charge per month. So if you were hoping to bag the interest without putting much (or anything) into your ISA, you’ll still need to pay that £1 per month charge.

Antonia says

Trading 212 is very popular among new investors and traders – partly due to its incredibly low-cost model.

It also pays a very good rate of interest on uninvested cash which you can keep in either its fee-free general investment account, or its fee-free Stocks & Shares ISA – so no monthly fees to pay for storing your cash in either location.

As with all variable rates (every rate in this table is variable), the interest rate could change and often does when the Bank of England adjusts the base rate. But you’re free to switch whenever you like if you see a better offer.

One thing to be aware of with Trading 212, is that they hold uninvested cash in qualifying money market funds (QMMFs). These are very low-risk funds, but you might not be as comfortable with this option as you would be knowing your money held in a bank vault. T212 chooses QMMFs because they can potentially make a profit by holding your cash here. And that allows them to keep their fees low and interest rates relatively high.

You’re covered by the FSCS (up to £85,000) if Trading 212 ever goes bust, but the FSCS doesn’t cover investment losses. So there is a very small risk with this option that the interest rate advertised is not what you will receive, and that you could even lose money, although it is a very unlikely outcome.