Interactive Investor to increase interest rates on cash balances

For £10,000 investments, interest will rise from 1.75% to 2% gross

Richard Wilson CEO Interactive Investor
Richard Wilson

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Interactive Investor will increase the interest on cash balances across ISAs, trading accounts, and SIPPs beginning on 1 February.

A new tier of investment and interest rates will also be introduced across all three categories for balances above £1m. This creates four categories of £10,000, £10,000 to £100,000, £100,000 to £1m, and those above.

See also: Interactive Investor: Interest rate-sensitive funds come roaring back in market rally

ISAs, Junior ISAs, and trading accounts will all see the same increases. For £10,000 investments, interest will rise from 1.75% to 2% gross. For £10,000 to £100,000, it will remain at 2.75%, and stay at 3.75% for £100,000 to £1m. For the new bracket of above £1m, pound balances will have a rate of 4.75% and for trading accounts US dollar balances will have a rate of 5%.

ISA and Junior ISA

Cash BalanceCurrent: From 1 September 2023New: From 1 February 2024
Gross %AER%Gross %AER%
On the first £10,0001.751.762.002.02
On the value between £10,000.01 – £100,0002.752.782.752.78
On the value between £100,000.01 – £1,000,0003.753.823.753.82
On the value over £1,000,0003.753.824.754.85

SIPPs will increase interest from 2.75% to 3.75% for the first £10,000, increase from 3.5% to 3.75% for above £10,000 to £100,000, and stay at 4% for above £100,000 to £1m. The over £1m bracket will pay 4.75% gross for pound balances and 5% for US dollar balances.

SIPP

Cash BalanceCurrent: From 1 September 2023New: From 1 February 2024
Gross %AER%Gross %AER%
On the first £10,0002.752.783.003.04
On the value between £10,000.01 – £100,0003.503.563.753.82
On the value between £100,000.01 – £1,000,0004.004.074.004.07
On the value over £1,000,000*4.004.074.754.85

Euro balances in trading accounts will increase to 2% from 1.75% for trading and to 3% from 2.75% for SIPPs.

Richard Wilson, chief executive of Interactive Investor, said: “We are an investment platform, our customers come to us to invest, and there are many sound reasons why they may choose to maintain cash balances with us in the short term. We routinely assess our service offering, and we will continue to actively monitor and respond to the interest rate environment.

“We are fully committed to transparency on rates and in our customer communications. interactive investor offers a full range of investment options, including an array of cash alternatives such as fixed income, money market, and a cash deposit service.”

Trading Accounts

Cash BalanceCurrent: From 1 September 2023New: From 1 February 2024
Gross %AER%Gross %AER%
On the first £10,0001.751.762.002.02
On the value between £10,000.01 – £100,0002.752.782.752.78
On the value between £100,000.01 – £1,000,0003.753.823.753.82
On the value over £1,000,000*3.753.824.754.85

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