'Your money is technically being invested'
Rubal Channa, Which? money expert, says…The answer comes down to how comfortable you are with a relatively low level of risk. Trading 212 holds customers’ cash Isa money in partner banks, but some of the money in its stocks and shares Isas that earns interest is invested in money market funds.
Indeed, these funds are usually rated a one on the industry’s standard seven-point scale (with seven being highest risk).
But as an electronic money provider, Trading 212 has to keep client funds separate. So, in the event it went bust, you would still benefit from some protection.
Other readers should be aware that (at the time of writing) they could get an even higher rate on Trading 212’s cash Isa if they apply through moneyfactscompare.co.uk. This may include a bonus for a limited period.
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