Yes, IG pays 4.25% interest on uninvested cash, but only for active traders. Investors using participating share dealing accounts can now earn interest of 4.25% AER (variable) on uninvested GBP cash held across their General Investment Accounts (GIAs), ISAs, and SIPPs. The initiative aims to make idle cash work harder—but there are important eligibility rules and exclusions to understand.
Interest is only paid on settled, uninvested GBP balances, and is capped at £100,000 across all eligible accounts. Balances in other currencies (e.g. USD, EUR) do not qualify, nor does money tied up in open share positions.
To qualify for interest in any given month, account holders must meet at least one of the following activity criteria: hold an active Smart Portfolio, have an open share position, or execute at least one buy or sell trade during that calendar month. If there is no activity, no interest will be paid.
The interest is calculated daily using the formula:
Daily interest = Daily balance × (4.25% ÷ 365)
Payments are then credited monthly, with the first payments scheduled for May 2025.
For example, if you hold £45,000 across an ISA and a SIPP and meet the trading activity criteria, you could earn around £154 in interest over a typical month. However, if your total cash across accounts exceeds £100,000, only the first £100,000 will accrue interest—divided proportionally across accounts.
If you prefer not to earn interest, you can opt out by contacting the provider.
It’s not as good as the 8.5% bonus interest rate IG had as a promotion, but it’s better than the zero they used to pay. This new interest program provides an attractive way to earn a return on cash while deciding when and where to invest. But to benefit, investors must ensure their accounts are active and remain within the eligibility limits each month.
Keep an eye out as I am sure IG will offer more interest based incentives for new clients in the future.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
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