3% interest for plus users

Hello everyone,

Im a little confused on the 3% interest. Can I keep more than £4k in my acount and still be paid the interest up to the £4K, or does it have to be less than £4K to be eligible?

Many thanks

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You can hold as much as you like but the interest will be paid only on the 4k max.

I was speaking with customer cervice chat, and i asked that i wasnt paid on the 11th working day, and she told me that i was holding more than £4k

That does not sound correct. Freetrade gives the following example on its blog:

Let’s say you are waiting to invest £5,000 across your two Freetrade accounts: you have £3,000 cash in your ISA and £2,000 in your GIA. We will apply the interest to the full £3,000 in the ISA first, and then to the £1,000 remaining in your £4,000 cash cap from the GIA.

she’s wrong

Correct which led me to believe that more than £4K could be held. I also wasnt paid the interest

If it is money that i am not using, why should i not use it to decrease my monthly subscription, no?

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2 weeks ago I would’ve agreed but right now I like having some cash around :joy:

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Hm! I suppose you can try again with the customer service in-app chat and cite their blog… Or direct-message one of the Customer Ops managers through the forum (Freetrade Community)? Or email (Dedicated channels and how we’re scaling support for you, 15th Feb 2021)? That was a really weird response for them to give you.

same… would put it all in stonks!!!

Dont get me wrong i would invest all of it, but atm im just waiting out to see what the market does

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Thank you for your reply :+1:

yeah i suppose… just a bit pointless in my opinion to have it sitting there doing nothing for 12 quid a month… hell even if you invested 500 quid of it on something that earnt you 2% you’d pay for your subscription.

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At this point whatever i have invested in has dipped, inculding recently. So im waiting for it to dip further and then buy

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thats fair enough!! i feel your pain, red is my favourite colour… on a car! :smiley:

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£500 x 2% is £10
So “if” an investment rose by 2% within month surely it would only “pay for your subscription” if sold - and for one month ?

And then one would have to repeat, month after month.

If only investing (trading) was so certain…:thinking:

Surely more realistic is to invest £4,000 in something with a Dividend Yield of 3% (or better)… or invest £3,000 in something yielding 4% (or better) ?
(Perhaps an Investment Trust with payments at least Quarterly ?)

Does the 3% interest apply to cash that’s held in a SIPP account @sampoullain ? - the page at Earn 3% interest on cash in Freetrade Plus mentions GIA and ISA but isn’t very clear on whether SIPP is included.

Answering my own question… no there’s no interest on SIPP account.

So if you had a spare 4K lying around you could put it into your Freetrade account, earn about £12 per month which would basically pay for you to have the plus account?

Is that correct?

My calculation was a bit different to most peoples, I guess, as I wanted an ISA anyway, but didn’t especially need the plus features. I still went for plus just because of this 3% offer.

For for me, the interest will exactly cancel out the plus fee, so effectively I’m saving £3 per month on the ISA fees. To get £36 in interest on £4000, I’d need a rate of 0.9% which is better than pretty much every instant access savings account.

I’d like to keep spare cash easily accessible, but waiting a week for it shouldn’t be the end of the world, so it seems like a good deal to leave an extra £4000 cash in my ISA, as I want to invest it slowly over the next few months anyway.

Also, if the interest is paid directly into the ISA, it’ll effectively increase my ISA allowance by that much too.