Hi, I want a stocks & shares ISA, and I am considering freetrade. I have just seen that FT plus (currently) offers 3% interest on cash upto £4K.
My intention was to put £6K into my chosen ISA this financial year - if I instead put in £10K, but leave £4K of that sum uninvested for the foreseeable future, the monthly interest payment would seem to cover the cost of a freetrade plus account.
Is there any downside to this (other than the obvious one thst the £4K is not in fact earning net interest, which I’m OK with).
Do freetrade actively try to stop you leaving £4K of funds in the ISA uninvested long term?
If I leave the £4K cash in the ISA, does the interest get paid into the ISA (thereby increasing the total cash within) or is it paid back to my registered bank account?
If the 3% interest arises from cash left within the ISA, is that interest then declarable for tax purposes (as part of interest exceeding the £1K HMRC allowance), or is it classed as excempt due to sitting within the ISA wrapper?
TIA for any feedback, I am swithering between freetrade and Barclays, the above questions will inform my decision.