Interest on Cash in the pipeline?

Product Feedback
1

Many competitors offer interest on uninvested cash now. (and at good rates like 212 and lightyear)

How are you going to stay competitive without this important feature for users?

Is it in the pipeline?

2

I would be surprised.
IE is making a loss and is using the interest that it earns from uninvested cash in order to reduce that loss.
I believe that T212 can pay a decent interest rate because they receive significant income from their CFD accounts and from FX (neither of which IE has).

3

Wasn’t aware of this ok thanks.
Also explains they were happy to keep me on as a customer after moving overseas with just a GIA.
Lightyear wouldn’t so closed my account.

4

An option will be to buy some Money Market Funds (CSH2). Its accumulative, so the “interest” is paid directly to the asset.

Other MMFs could be distributive so they pay dividends like shares which are not as suitable to your case.

5

Many thanks - I was not aware of this fund. Still on the learning curve.

6

Yeah its a bit of a hassle. I have been using this product which kinda grows at the same rate as the SONIA. When you need the cash, sell the amount of product required to generate the cash.

The other issue is you probably won’t get the full sum immediately. Like if you sell £100 worth of CSH2, you might get £80-90 immediately, and the balance in the next 24 hours.

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7

ok good to know so there is always some delay? Not instant cashback.
When you sell part of the CSH2 is there always a settlement period (couple of days) as IE tend to be slow on the sell.
212 trading is instant (but then 212 have interest on cash so no need for CSH2).

I’ve added some money to it to see how it plays out - test the waters so to speak
Thanks for the tip

8

I have IBKR and that gives no interest on sitting cash.
Very useful for IBKR when you have sitting cash. But got to take into consideration the small fee to buy and sell..

9

They have 2 money market funds and I’m currently using one. That’s your cash fund. The uncollected interest on cash balances is what helps fund the still loss making operation which is InvestEngine while it’s in the growth phase and you get to buy and sell a huge range of ETFs free of charge including account maintenance charges, this is especially valuable for SIPP s as they have greater compliance costs and normally carry a hefty annual fee, eg 0.5pc at Hargreaves Lansdowne which you get to keep

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