Due to the Bank of England (BoE) recent interest rate cut, Trading 212 will make changes to the interest rate.Trading212 has made a big change to its ISAs in the wake of the Bank of England interest rate cut. Due to the Bank of England (BoE) recent interest rate cut, Trading 212 will make changes to the interest rate.
From last week, the Trading 212 Cash ISA changed from 4.10% to 3.85% AER (variable) and from Friday Trading 212 Stocks ISA, Invest and CFD will shift from 4.35% to 4.05% AER (variable).
Laith Khalaf, head of investment analysis at investment platform AJ Bell, said: “It might seem odd for the Bank of England to be cutting interest rates at the same time that inflation is pulling away from the 2% target.
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“However, the Bank’s actions are based not on the current inflation rate, which tells us about price rises over the last 12 months, but rather on future inflation, forecast over the next three years. Importantly, the Bank of England’s previous forecasts show inflation rising over the course of this year before falling back, so prices are currently evolving broadly in line with what the Bank has been expecting.”
Speaking last week, BBC and ITV star Martin Lewis said: ” UK interest rates are likely on the move. And that means savers need to check what they earn now. Millions are on pants sub-4% rates and can easily ditch, switch & gain.
“All you usually need to do (barring with ISAs) is withdraw your money from one account and put it in a new one.
“Most analysts believe this Thursday the Bank of England will likely cut the UK base rate again, from the current 4.25% to 4%. Good news for some with debt, but a sign savers need to take action.”
He said: “A cash ISA is just a savings account you can put up to £20,000 per tax year in, where the interest is NEVER taxed (more on that later). And right now, the top payers beat all but Chase above.
“So, even if you don’t need the tax advantage, if you haven’t used your £20,000 ISA allowance this year, they can be winners.”