How Much Does Interactive Investor Pay Interest on Cash in 2023

Interactive Investor pays interest on cash in your account, but the rate varies depending on your account balance. As of 2023, you can earn up to 1.40% AER (Annual Equivalent Rate) on balances up to £10,000.

For balances between £10,001 and £50,000, the interest rate drops to 1.25% AER. This means you'll earn less interest on larger balances, but still a decent return on your money.

To give you a better idea, let's consider an example: if you have £20,000 in your Interactive Investor account, you'd earn 1.25% AER, which translates to £250 in interest per year.

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Interactive Investor pays interest on uninvested cash, but how does it stack up against the competition? Interactive Investor's interest rates are actually above average, according to our research.

The interest rates offered by Interactive Investor vary depending on the currency and account type. For example, the maximum interest rate on uninvested USD is 5.0%, while the maximum interest rate on uninvested GBP is 4.8%. In comparison, AJ Bell Youinvest offers a maximum interest rate of 2.5% on uninvested GBP, while Hargreaves Lansdown offers 2.2%.

Interactive Investor also pays interest on uninvested EUR, with a maximum interest rate of 2.0%. This is lower than the maximum interest rate offered by AJ Bell Youinvest and Hargreaves Lansdown, which is 0.0% for both currencies.

Here's a breakdown of the interest rates offered by Interactive Investor and its competitors:

Interactive Investor's interest rates are also competitive when it comes to interest on specific amounts. For example, the interest rate on £10,000 in a trading account is 2.0%, while the interest rate on £10,000 in a SIPP account is 3.0%.

It's worth noting that Interactive Investor does not charge an inactivity fee, which is a plus for customers who may not trade frequently.

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Interactive Investor pays interest on uninvested cash, and the rates vary depending on the account type and balance. The interest rates are as follows:

For trading and ISA accounts, the interest rates are:

For SIPP accounts, the interest rates are:

Interactive Investor also pays interest on euro balances in trading accounts, with a rate of 2% from 1 February 2024.

The interest rates on cash balances in SIPP accounts will increase from 1 February 2024, with the new rates being:

It's worth noting that the interest rates on cash balances in trading accounts will also increase from 1 February 2024, with the new rates being:

These changes reflect Interactive Investor's intention to actively monitor and respond to interest rate movements.

Interactive Investor has increased its cash interest rates across all ISA, trading, and SIPP accounts from 1 February.

The changes reflect the platform's intention to actively monitor and respond to interest rate movements.

Interactive Investor now pays 3% interest on the first £10,000 of cash held in SIPP accounts, up from 2.75%. This rate applies to balances up to £10,000.

For balances between £10,000.01 and £100,000, Interactive Investor pays 3.75% interest, up from 3.5%. This rate applies to balances between £10,000 and £100,000.

Interactive Investor pays a maximum interest rate of 4.75% on cash balances above £1m, up from 3.75%. This rate applies to balances over £1m.

Here's a summary of the new interest rates:

These changes are part of Interactive Investor's ongoing efforts to provide competitive interest rates to its customers.

Interactive Investor pays interest on uninvested cash, but the rates vary depending on the account type and balance. They offer a maximum cash yield of 5.0% for USD, 4.8% for GBP, and 2.0% for EUR.

The interest rates on uninvested cash are as follows:

Interactive Investor has recently increased its interest rates on cash balances, with the new rates taking effect from 1 February 2024. The new rates are as follows:

For SIPP accounts, the new rates are as follows:

It's worth noting that Interactive Investor does not charge an inactivity fee, so you can keep your cash balance with them without worrying about additional charges.