We’re increasing your interest rate

Choose from over 6,100 stocks and ETFs. Earn up to 5% AER on your cash while you decide. 

From 1 March, we’re introducing interest on uninvested cash for Basic customers. We’re also increasing the rate that subscribers receive. 

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Interest will be paid out monthly. You can put it toward you next investment or withdraw it anytime.

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How is my interest calculated? 

Interest is calculated (and compounded) daily, based on your total cash at midnight each day, and paid monthly.  

Interest continues to accrue over weekends and bank holidays based on your end of day balance on the previous working day. Any deposits you make over a weekend or bank holiday won’t be eligible for interest until the next working day.

We pay all interest gross, which means no tax is deducted. It’s your responsibility to pay any tax due, based on your individual circumstances. Tax rules may change in future.

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How often will I receive my interest?

Once a month. The interest accrued over a calendar month is credited around the 11th working day of the following month. So the first interest payment impacted by this change will be the payment you receive in April for interest accrued in March. 

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How much of my uninvested cash is eligible to earn interest? 

The total amount of cash you’re eligible to receive interest on is capped based on your subscription plan: 

• Customers on the Basic plan earn 1% AER on up to £1,000 uninvested cash
• Customers on the Standard plan earn 3% AER on up to £2,000 uninvested cash 
• Customers on the Plus plan earn 5% AER on up to £3,000 uninvested cash 

You’ll earn interest on the uninvested cash in your account up to the capped amounts above, plus any resulting interest over the course of the year (as long as that interest also stays as cash in your Freetrade account!) 

Interest is calculated based on the combined total cash held across your GIA, ISA, SIPP, and Treasury, subject to the caps above. 

Total cash = withdrawable cash + unsettled cash + reserved cash

💡 Withdrawable cash: settled, uninvested cash sitting in your Freetrade account. 

💡 Unsettled cash: the proceeds of a sell order before it settles (approximately 3 working days following the sale). When cash is unsettled, it earns interest and can be reinvested as soon as you’d like. However, it’s not withdrawable to your bank account until it settles. 

💡 Reserved cash: cash that’s been put aside for a limit order or stop order.

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What would my estimated interest be after 12 months based on the capped amount? 

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This is the estimated interest you would earn if the capped amount was held in your Freetrade account as uninvested cash for the full year, all interest is paid back into the account around the 11th working day of each month and is not withdrawn or invested.

This estimate does not take into account your individual circumstances. 

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Anything else I should keep in mind? 

Remember: your Freetrade account is best used for investing rather than saving. Cash kept in your account should be for the purpose of facilitating trades.

Additional interest earned from cash may be retained by Freetrade. Being a commission-free platform, the additional interest will be used to cover our cash management and wider operational costs.

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What are my other low-risk options for my cash? 

Check out UK Treasury bills or our collection of Cash Investment ETFs.

When you invest, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you invest.

Freetrade does not give investment advice and you are responsible for making your own investment decisions. If you are unsure about what is right for you, you should seek independent advice.

ISA and SIPP eligibility and tax rules apply.

A SIPP is a pension designed for you to save until your retirement and is for people who want to make their own investment decisions. You can normally only draw your pension from age 55 (57 from 2028), except in special circumstances. 

At present, Freetrade only supports Uncrystallised Fund Pension Lump Sums (UFPLS) for customers who wish to withdraw funds from their SIPP after their 55th birthday. We strongly encourage you to seek financial advice before making any withdrawals from your SIPP.

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