CMC Invest, the share trading and investment app owned by CMC Markets is now paying interest on unencumbered cash balances held in client accounts.
2% interest on cash balances
CMC Invest will pay interest at a rate of 2.00 % gross per annum on the client’s uninvested cash, the interest payments will be available across all CMC Invest account types, subscription plans and currency wallets.
There are no fixed term requirements or limits on the size of deposits that will attract interest payments.
- Related guide: Our expert CMC Invest review and ratings
Where can you get the most interest on your uninvested cash on deposit?
Not all brokers and investment platforms pay deposit interest, for example, Dodl, which is owned and operated by AJ Bell, currently pays zero per cent on free cash balances.
However, parent company AJ Bell pays 2.20% interest on cash balances in dealing accounts, of over £10,000, whilst free cash balances below that figure attract a reduced rate of 1.70%.
Interactive Brokers pay deposit interest on free cash balances above $10,000 or foreign currency equivalents. If you have £8000 or more in unvested cash in your account, you will receive a rate of 4.467%, balances of less than £8000 receive no interest however.
IG Group is best known for margin trading, but it has growing share trading and investment business, yet it does not currently pay interest on free cash balances, held in any of its accounts.
Market leader Hargreaves Lansdown pays deposit interest on free cash balances on a sliding scale.
Free cash balances of up to £10,000 receive 1.00%, balances between £10,000 and £50,000 are paid 1.2%, those between £50,000 and £100,000 attract 1.40%, and balances greater than £100,000 are paid 1.60%.
Interactive Investor also offers a sliding scale of interest payments on free cash balances, held in its trading accounts.
Balances of up to £10,000 are paid 1.50% gross and amounts above £10,000, and up to £100,000 are paid 2.50% gross, whilst those with more than £100,000 will receive gross interest of 3.50% on the excess.
Saxo Markets also pays deposit interest on free cash balances, however, the interest rate you receive will depend on your free cash balance and the account tier that you hold with the broker.
For example, if you hold a free cash balance of £11,000 as a classic account holder you will receive 0.031% per annum. A platinum account holder, with the same free cash balance, gets paid 0.034% per annum and a VIP account holder receives 0.036%.
However, if that free cash balance is £150,000, then classic account holders get 2.958% platinum clients get 3.192% and VIP account holders 3.425%.
It’s good to get some interest on free cash balances within a trading or investment account, however, these are not designed to be the home for uninvested cash, particularly over the medium to longer term.
If you do have larger uninvested cash balances, there are better homes out there for your money.
