Pay interest on cash balance

Would result in significant cash boost for Freetrade as rn I (and imaginably many others) keep cash in Monzo & other interest-bearing accounts before moving it to FT only to execute a trade.

Seeing as Draper invested in other businesses that do this it would be nice to see and hope they can help in this

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I would hold a great deal more cash in Freetrade if this became a thing.

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not to sure why you would want to just keep money in FT without investing it? Doubt FT would be able to offer anything more than 1 or 2%…when you could be making a larger gain whilst invested?

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I would rather FT spend the money on keeping fees low rather than paying interest on cash balances.

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I think you’d be looking at the base rate - no more.

because of a few reasons:

  1. Not every time I have money to invest is a good time to invest
  2. Bc my financial status is unstable, if I need to withdraw money but I keep it in stocks, I might have to sell at a loss.
  3. I want to keep cash at all times in case there is a big drop in the market.

what you’re saying is exactly why they could offer a competitive interest rate… becuase they could make more money investing all of our money :smiley: so they could easily pay 2-3% on cash balances while earning 6-7% from all the cash people store on FT.

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Read the full story of Ali pay. It can be done

I am earning 1.15% on Monzo… it’s pathetic. I’m sure FT could AT LEAST double that from all the investor money.

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Are you serious or is this sarcasm? I can’t tell. Since it’s utterly ridiculous to assume freetrade (or any financial institution) makes 6-7% on money and it is also utterly ridiculous to expect 2.x% on a savings account.

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I have held thousands before in other platform and placed a buy limit order when certain stocks dropped in value. The alternative, keep money in a bank, deposit, then buy, that’s too old school.

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That’s not how cash savings work.

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utterly ridiculous to expect 2% or more interest?? now I’m asking if you’re joking. In the US it would be laughable to say that 1.15% is good…
also… 6-7% is ridiculous? the S&P 500 was up 28% in 2019… and we know historically it’s always up ~7% a year. And that’s ZERO effort investing. With these conditions I don’t understand why it’s so unbelievable to ask for 2% on cash balances. But please explain if this approach is wrong.

That’s on average, not annual.

You need to understand the system. Cash savings fund loans, mortgages it’s not for Freetrade to invest on your behalf.

What about the year it’s down 50% who pays your interest then? Or the 6 years it spends catching back up to its prior value?

Monzo aren’t paying you anything, this is a partner institution using your money as capital for commercial or homeowner loans and mortgages.

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Yes. You seem to mistake the stock market with the money market. Your text has nothing at all to do with interest rates. I’d recommend reading up on it.

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I have long suspected that there are some ETF only investors out there who think the average market return is a guaranteed yearly return.

I am terrified on behalf of these people. I dread to think how many will end up panic selling at the bottom…

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If Freetrade were considering paying out 2.3% on cash balances as a strategy I think the investors would want their money back.

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Indeed.

Think Nutmeg pay 0.45% on a cash balance which is essentially the base rate minus their fees.

Agreed @Jim_mcgrain 2.3% is way too high. Freetrade would just become a savings bank…those are great rates :rofl:. I was thinking 1% or less even. Wonder how that helps you guys in your ISA’s. That 0.5% would just be tax-free adding to your ISA. Better than a kick in the face. To suggest they should be competing with Marcus by GS is a bit of a stretch though at this stage or at any foreseeable time

It’s made worse when everyone conveniently forgets the pretty large correction in Dec 2018, the S&P is indeed at record highs but it’s disingenuous to say it’s ‘up 28%’.

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