Have you been sitting on a pile of GBP that you intend on investing in but are currently just sitting on it waiting for a market downturn?
Since the sharp rise in interest rates across the globe, investment brokerages have led the way in offering brokerage savings accounts with decent interest rates (almost completely risk-free in most cases).
Among the current market offerings, Interactive Investor provides the highest interest rate of 5.25% on uninvested GBP cash.
For those with less than £10,000 to invest who still want to earn interest on their uninvested cash, Trading 212 is an excellent alternative, offering 5.20% on uninvested GBP. New users can also receive a free fractional share worth up to £/€100 by signing up with the Trading 212 promo code: IITW.
In this blog post, we will take a closer look at what the best interest rate offerings are on the market right now for your uninvested GBP cash.
Best 7 Brokers for interest rates on uninvested cash in GBP
- Interactive Investor: The highest rate on GBP.
- Trading 212: The second highest rate, new users get a free share.
- Lightyear: BA new broker with high interest rate on cash.
- Interactive Brokers: Another great alternative. Despite the lower rate, IBKR is publicly listed, has a long track record, and is highly transparent.
- Saxo: Great for advanced traders.
- Hargreaves Lansdown: Best for a UK-based bank.
- Vanguard: Ideal for low-cost index funds.
Comparison of 7 best brokers for interest rates on uninvested cash in GBP
Best brokers for interest rates on uninvested cash in GBP
1. Interactive Investor
Interactive Investor offers some of the best interest rates on uninvested cash through its Cash Savings products. You can earn 5.25% for a 12-month term or 4.53% if you prefer to lock your funds for 3 years.
The minimum deposit ranges from £1,000 to £10,000, with maximum limits between £85,000 and £250,000. Interest is credited monthly, and your uninvested cash is protected by the FSCS up to £85,000.
With Interactive Investor, you will also be able to invest in the company’s IPOs and Bond launches before they hit the market.
2. Trading 212
When investing, your capital is at risk.
Trading 212 is a brokerage firm based in the UK that offers commission-free stock and ETF investments plus CFDs on stocks, indices, commodities, and forex.
It offers a variable interest rate of 5.20% on the uninvested GBP cash in your account and is paid daily. Trading 212 earns interest on the cash it holds on behalf of its clients in institutional bank accounts and pays half of this interest forward to you.
For UK clients, your uninvested cash is protected by the FSCS up to £85,000, and for EU clients is protected by the ICF up to €20,000.
Interested in knowing more about Trading 212? Read our Trading 212 Review.
3. Lightyear
Terms apply, seek guidance if necessary. When you invest, your capital is at risk.
Lightyear offers an attractive interest rate of 5.16% on uninvested cash in GBP, credited monthly. There are no minimum or maximum limits on deposits.
Your uninvested funds are kept separate from Lightyear’s business funds, held with regulated EU institutions like ABN AMRO Bank, LHV Bank, and BlackRock money market funds.
In the unlikely event of insolvency, your assets are safeguarded and protected up to 20,000 EUR by the Estonian Investor Protection Sectoral Fund, though this does not equate to a bank deposit guarantee. Your investments remain yours and are held in separate accounts, ensuring they are inaccessible to creditors.
Interested in knowing more about Lightyear? Read our Lightyear review.
4. Interactive Brokers
Interactive Brokers offers a maximum interest rate of 4.731% for GBP balances. Interest accruals are calculated monthly and credited within the first days of the following month, based on settled money only.
Accounts with a Net Asset Value (NAV) of USD 100,000 or more are eligible for the full rate; lower balances earn proportionately less. To estimate your rate, you can use their online calculator.
For more details on the protection provided by IBKR, we have covered this in a separate blog post if you are interested in learning more about your protections.
Interested in knowing more about Interactive Brokers? Read our Interactive Brokers review.
5. Saxo
62% of retail CFD accounts lose money.
Saxo offers tiered interest rates based on account type (Classic, Platinum, VIP) and balance where you can earn up to 3.95% interest on uninvested cash in GBP.
For example, a £30,000 deposit yields 1.513% for Classic accounts, 2.95% for Platinum accounts, and 3.95% for VIP accounts. If you would like to estimate your rate, you can use their online calculator.
Interest is earned daily and credited monthly. Balances below £8,414 do not earn interest and client deposits are guaranteed up to EUR 100,000 for cash deposits in case of bank failure.
Interested in knowing more about Saxo Bank? Read our Saxo review.
6. Hargreaves Lansdown
Hargreaves Lansdown offers competitive interest rates on GBP cash balances, reaching up to 3.70%. Interest is typically credited monthly, and minimum deposit requirements vary from £1 to £10,000, depending on the product. Keep in mind that fixed-term products do not allow early withdrawals.
Your funds in savings products are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000. Hargreaves Lansdown is a well-established financial service provider, offering a wide range of investment options and savings products to meet your financial needs.
7. Vanguard
Vanguard offers a 2.60% interest rate on GBP balances, with interest accrued daily and paid monthly. There are no deposit limits. Your funds are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000.
Vanguard is renowned for being the largest provider of mutual funds and the second-largest provider of ETFs worldwide, also offering general trading accounts, ISAs, and personal pensions.
Bottom line
In summary, the interest rates on uninvested GBP cash provided by the top brokers offer a range of opportunities and attractive options for investors to maximize their idle funds across various platforms.
If you’re looking for the highest interest rate and have over £10,000 to invest, Interactive Investor might be your best choice, offering up to 5.25% on your uninvested GBP cash balance.
For those with smaller amounts, Trading 212 provides a competitive 5.20% with no minimum deposit. And remember, by signing up with the Trading 212 promo code IITW, you can receive a free fractional share worth up to £/€100.
However, it’s essential to consider the specific requirements and restrictions of each broker, such as minimum deposits or the protection schemes available, to ensure they align with your investment needs.
Looking for interest in EUR and USD cash? Check our articles on the best brokerage account interest rates for Uninvested EUR cash and Uninvested USD cash.
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