So just to be clear and that I have understood this correctly, Freetrade Plus effectively pays for itself providing that I keep £4k in cash and earn 3% interest on the full amount each month which works out to £10 per month in interest?
The additional perks of having the Stocks and Shares ISA included as part of my Plus membership means that I am effectively saving £3/month on the basis that the received interest pays for the Plus membership fees. Is that correct?
Is there a minimum term for Plus membership?
What happens if I open a Stocks and Shares ISA and then downgrade to a GIA? Will I then be charged £3/month?
Correct. Interest is calculated daily so you would need at least £4k in cash for the entire month. The £4k can be split between your ISA and GIA and will receive interest proportiately with the ISA taking priority since it’s a tax shelter.
E.g. if you have £3k in your ISA and £3k in your GIA all month then:
the ISA would receive £7.50 interest
That’s £3,000 * 3% / 12
the GIA would receive £2.50 interest
That’s £1,000 * 3% / 12, with the remaining £2,000 being above the interest-earning amount
Correct again. The ISA is included with Plus so as long as you earn the full £10 interest then you save yourself the ISA fee.
One month. It renews monthly so you can always cancel from the following month.
If you keep the ISA and cancel your Plus membership then you’re just left paying the £3 per month ISA fee and receiving no interest on cash balances.
That sounded so odd to me… I would have thought they meant something like on the 11th of the following month ( or next working day if public holiday ), so I checked on Freetrade website and that’s what it says
