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Trading 212 Launches Cash ISA with 3.9% AER

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  Published in Stocks and Investing on Friday, February 20th 2026 at 10:29 GMT by Daily Express
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London, UK - February 20th, 2026 - Trading 212, the commission-free trading platform, has entered the cash savings market with the launch of its Cash ISA, offering a 3.9% AER (Annual Equivalent Rate) interest rate. The move comes at a critical time for UK savers, as the ISA transfer deadline for the current tax year approaches on April 6th, prompting many to seek the best possible returns on their tax-free savings.

With inflation still impacting the value of savings, even modest gains are attracting significant attention. While 3.9% is a competitive rate, it remains to be seen if it will be enough to sway savers from existing ISA providers or encourage new investors to join the Trading 212 platform. Several other financial institutions are currently offering similar, and in some cases, slightly higher rates, creating a dynamic and competitive landscape for ISA savings.

ISA Transfers: A Race Against the Clock

The April 6th deadline is crucial for ISA investors. Those wishing to move funds from an existing ISA to a new provider - like Trading 212 - must initiate the transfer process before this date to ensure their savings remain tax-efficient for the 2025/26 tax year. Failure to do so could result in those savings being subject to income tax.

Trading 212 has outlined a straightforward transfer process. Savers need to first contact their current ISA provider to begin the transfer out process. The provider will then handle the movement of funds to the Trading 212 Cash ISA. However, potential investors should be aware that this process can take up to 15 working days, emphasizing the need for prompt action if they intend to meet the April 6th deadline.

Trading 212's Offering: Flexibility and Transparency

According to Guy Cohen, CEO of Trading 212, the platform's Cash ISA is designed to be user-friendly and transparent. "Our Cash ISA offers a simple and transparent way for people to save their cash and grow it tax-free," Cohen stated. "We're confident that our competitive interest rate, combined with our user-friendly platform, will make Trading 212 a compelling choice for ISA investors."

The flexibility of the ISA - allowing both transfers and withdrawals - is a key selling point. This contrasts with some fixed-rate ISAs which lock funds away for a set period, offering potentially higher returns but limiting access to the money.

Understanding ISAs: A Primer for Savers

For those unfamiliar with ISAs, they are a government-backed initiative designed to encourage saving. An ISA, or Individual Savings Account, shields earned interest from income tax, providing a valuable benefit for savers. The government sets an annual allowance, which for the 2026/27 tax year is GBP20,000. This means individuals can deposit up to GBP20,000 into their ISA(s) each tax year and any interest earned is completely tax-free.

It's important to note that the GBP20,000 allowance is cumulative across all types of ISAs. Savers can choose to split their allowance between different types of ISAs to suit their individual needs and risk tolerance.

Beyond Cash: Exploring the ISA Landscape

While the Trading 212 offering is a Cash ISA, it's vital to understand the broader ISA landscape. The primary types include:

• Cash ISAs: Offer a safe, low-risk environment for savings. Ideal for those prioritizing capital preservation.
• Stocks and Shares ISAs: Allow investment in stocks, bonds, and other assets. Offer the potential for higher returns but also carry a higher degree of risk. Trading 212 is primarily known for its stocks and shares platform, so the launch of a Cash ISA expands its service offering.
• Innovative Finance ISAs: Invest in peer-to-peer lending and other alternative finance options. These are typically higher-risk, higher-reward investments.

The best type of ISA for an individual depends on their financial goals, risk appetite, and time horizon. For those nearing retirement, a Cash ISA might be the more prudent choice, while younger investors with a longer time horizon might consider a Stocks and Shares ISA for potential growth.

The Future of ISA Savings

As the financial landscape evolves, the role of ISAs is likely to become even more significant. With increasing pressure on pension provisions and the ongoing need for financial security, individuals are seeking effective ways to save and invest. Trading 212's entry into the Cash ISA market demonstrates the growing competition among financial providers to attract savers and cater to their evolving needs. The success of their offering will likely depend on its ability to balance competitive rates with a seamless user experience and efficient transfer process.