A Trading 212 Thread

They say we’ll earn interest compounded on a daily basis, so I’m assuming the return will not change.

Edit: sorry re-read the screenshot, I see they are claiming the below doesn’t apply

Interest is calculated daily based on the balance that day, common with most savings accounts.

If the interest from the previous 0-30 days hasn’t yet been paid, you won’t be paid any interest on it.

Worked example, assume a 5% interest rate and a starting balance of £100k for easy numbers sakes.

100000 x 0.05 = £5k interest over a year, divide that by 365 and that’s £13.69 interest you’ll earn on day one.

If that was paid daily, on day 2 you’d have £100013.69, and the interest for that day would be £13.70, and it’d keep escalating day by day.

If you’re only paid monthly then your daily interest calculation will be £13.69 a day until you receive your first monthly interest payment.

To be clear, the difference is pennies even on a large balance, but they all count.

As Graham said, they claim not, however, it still won’t change how I use it regardless :man_shrugging:

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Oh right. That’s pretty weird then. Be interested to know if that’s actually the case.

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Don’t know if this helps, but according to the payment schedule, we receive the same interest payment each day.

My maths is strictly O-level (I’m that old) but I’d conclude from it that interest is not compounded.

(Nonetheless, this provider is easily my go-to provider of Cash ISAs right now).