Best investment platforms paying high interest on cash
Some trading apps and platforms now offer competitive interest rates on uninvested cash.
You could get up to 4.25% interest on uninvested cash that’s sitting in your share trading account – or 0%, depending on which platform you’re with.
Base rate hikes from the Bank of England (BoE) are becoming a regular feature of life in the UK, but many savers aren’t aware that you can get some great interest rates on investing platforms.
It’s slightly under the radar, but there are several UK share dealing accounts offering some competitive rates on uninvested cash – money that’s sitting idle in your investment account.
So, instead of having your investments and cash savings held separately, you could consider keeping them under one roof. But be aware that some of these accounts won’t offer you the same protection as you’d get with a savings account .
Another potential hack is that some apps and platforms will pay this interest on cash held in your stocks and shares ISA. So you could use one ISA account as a hybrid for cash and investments.
Share dealing providers with competitive interest rates
We’ve shown the most competitive rates we found among investment platforms in June 2023, in the table below.
| Provider | Variable interest rate | Max cash limit or rules | Stocks and shares ISA | FSCS protection |
|---|---|---|---|---|
| Lightyear | 4.25% | None | ||
| Bestinvest | 3.6% | None | ||
| Freetrade | 3% | £4,000 | ||
| Vanguard | 2.45% | None | ||
| Fidelity | 2.35% | None | ||
| Hargreaves Lansdown | 1% – 2.5% (depending on balance) | Tiered system | ||
| interactive investor | 1.25% – 2.25% | 1.25% (first £10,000) 2.25% (anything over £10,000) | ||
| AJ Bell | 1.15% – 1.65% | 1.15% (first £10,000) 1.65% (anything over £10,000) |
Should you keep cash on an investing platform?
It can be useful, but it’s also important to be aware of the risks. Not every provider comes with protection from the Financial Services Compensation Scheme (FSCS), which protects deposits of up to £85,000 in the unlikely event that a provider goes bust. So, take a quick look at what level of protection you get from a platform before depositing funds.
Although some interest rates on offer may not beat top easy-access rates from banks, this can still be a convenient option, especially if you’re keeping that cash aside to invest in the future. This way, it’s in your account and ready to be invested whenever you want, and earning a return rather than gathering dust.
Picking an investment platform for the cash interest rate shouldn’t be your only deciding factor, but it’s definitely a helpful bonus.
For the latest popular stocks, see our guide that looks at the best shares to buy now across a range of exchanges, including the Nasdaq, New York Stock Exchange and London Stock Exchange, and the biggest indices, including the S&P 500 and FTSE 100.
