Home Investing Best Investment Platforms for Interest on Cash UK

Best Investment Platforms for Interest on Cash UK (2026) | Compare Rates & Protection

Earning interest on uninvested cash has become a genuine competitive advantage among UK investment platforms in 2026. We examined rates, FSCS protection status, and eligibility requirements across the market’s leading platforms to identify the best options for passive investors seeking simplicity, active traders willing to meet conditions, and ISA holders prioritising tax-free returns.

XTB

Interest Score: 4.7/5

70% of Retail CFD Accounts Lose Money

Interest Score: 4.65/5

67% of Retail CFD Accounts Lose Money

Trading 212

Interest Score: 4.5/5

When investing, your capital is at risk

Interactive Brokers

Interest Score: 4.5/5

62.5% of Retail CFD Accounts Lose Money

eToro

Interest Score: 4.3/5

61% of retail CFD accounts lose money.

Lightyear

Interest Score: 4/5

Trading and investing involve risk. Capital at Risk

Freetrade

Interest Score: 3.9/5

Trading and investing involve risk. Capital at Risk

Quick Answer

XTB currently pays the highest standard rate at [rate:xtb]% [rate_type:xtb] with no conditions, no caps, and no trading requirements—plus full FSCS protection up to £120,000.

For new customers, IG’s promotional rate of [rate:ig_promo]% [rate_type:ig_promo] (on the first [cap:ig_promo], until [date:ig_promo]) is the market leader. You must open an account by 16 January 2026 and place your first trade by the same date to qualify.

Important: Not all platform cash is FSCS protected. Trading 212, Lightyear Vaults, and eToro’s Cash ISA use Qualifying Money Market Funds (QMMFs)—investments, not bank deposits—which fall outside FSCS deposit protection.

How Do These Investment Platforms Compare for Cash Interest?

The table below ranks UK investment platforms by interest rate on uninvested cash. We’ve included balance caps and activity requirements so you can compare like-for-like. Rates were verified in January 2026 from official platform sources.

Rank	Platform	Rate	Conditions	Cap	Best For
1	[name:ig_promo]	[rate:ig_promo]% [rate_type:ig_promo]	[conditions:ig_promo]	[cap:ig_promo]	Promotional seekers
2	[name:etoro_isa]	[rate:etoro_isa]% [rate_type:etoro_isa]	[conditions:etoro_isa]	[cap:etoro_isa]	Cash ISA investors
3	[name:etoro_usd]	[rate:etoro_usd]%	[conditions:etoro_usd]	[cap:etoro_usd]	USD holders
4	[name:xtb]	[rate:xtb]% [rate_type:xtb]	[conditions:xtb]	[cap:xtb]	No-conditions seekers
5	[name:trading212_gia]	[rate:trading212_gia]% [rate_type:trading212_gia]	[conditions:trading212_gia]	[cap:trading212_gia]	Fee-free investors
6	[name:trading212_isa]	[rate:trading212_isa]% [rate_type:trading212_isa]	[conditions:trading212_isa]	[cap:trading212_isa]	ISA (QMMF comfort)
7	[name:ig_standard]	[rate:ig_standard]% [rate_type:ig_standard]	[conditions:ig_standard]	[cap:ig_standard]	Active traders
8	[name:freetrade_plus]	[rate:freetrade_plus]% [rate_type:freetrade_plus]	[conditions:freetrade_plus]	[cap:freetrade_plus]	Subscription users
9	[name:ibkr]	[rate:ibkr]% [rate_type:ibkr]	[conditions:ibkr]	[cap:ibkr]	High-balance investors
10	[name:lightyear_vaults]	[rate:lightyear_vaults]%	[conditions:lightyear_vaults]	[cap:lightyear_vaults]	Yield seekers
11	[name:lightyear_cash]	[rate:lightyear_cash]% [rate_type:lightyear_cash]	[conditions:lightyear_cash]	[cap:lightyear_cash]	FSCS + Lightyear
12	[name:freetrade_standard]	[rate:freetrade_standard]% [rate_type:freetrade_standard]	[conditions:freetrade_standard]	[cap:freetrade_standard]	Subscription users
13	[name:bestinvest]	[rate:bestinvest]% [rate_type:bestinvest]	[conditions:bestinvest]	[cap:bestinvest]	Traditional platform
14	[name:saxo_vip]	[rate:saxo_vip]% [rate_type:saxo_vip]	[conditions:saxo_vip]	[cap:saxo_vip]	High-net-worth
15	[name:hl]	[rate:hl]% [rate_type:hl]	[conditions:hl]	[cap:hl]	Traditional (large balance)
16	[name:ii]	[rate:ii]% [rate_type:ii]	[conditions:ii]	[cap:ii]	Traditional (large balance)

QMMF = Qualifying Money Market Fund. Cash held in QMMFs is not protected by the FSCS £120,000 deposit guarantee. See FSCS vs QMMF Protection Explained below for details.

Here Are The Top 7 Best Platforms for Interest on Uninvested Cash, Ranked

XTB – Best for Low-Cost Trading and Forex Access
IG – Best for Market Variety and Research Tools
Trading 212 – Best for Commission-Free* Stock and ETF Investing
Interactive Brokers– Best for Long-Term Investors and ISA Management
eToro – Best for Combining Stocks, Crypto, and Social Trading
Lightyear – Best for Multi-Currency Accounts and Interest on Uninvested Cash
Freetrade – Best for Beginners and Simple, Low-Cost App Investing

XTB – Best for Unconditional High Interest ([rate:xtb]% [rate_type:xtb])

XTB pays [rate:xtb]% [rate_type:xtb] on uninvested GBP cash with no conditions, no caps, and no trading requirements. Interest is calculated daily at 23:00 GMT and paid monthly within the first five business days. Your cash is held with Barclays Bank and protected by the FSCS up to £120,000. XTB is authorised and regulated by the FCA (FRN: 522157).

Pros & Cons

Highest unconditional rate at [rate:xtb]% [rate_type:xtb]
No balance caps or trading requirements
FSCS protected up to £120,000
Commission-free stock and ETF trading
Interest starts earning immediately

Rate can change weekly (variable)
No ISA or SIPP available
Smaller fund selection than traditional platforms
0.5% FX fee on non-GBP trades

The XTB Cash Interest Verdict
How Does XTB Calculate and Pay Interest?
Is XTB Safe and How Is Cash Protected?
How Does XTB Compare to Trading 212 and IG?

Best for: Investors who want the highest rate without jumping through hoops. If you value simplicity and FSCS protection over ISA wrappers, XTB delivers.
Not ideal for: ISA or SIPP investors, or those who need a wide fund selection beyond stocks and ETFs.

XTB calculates interest daily at 23:00 GMT based on your available cash balance. The accrued interest is paid monthly, typically within the first five business days of each month. There’s no minimum balance required to start earning, and no maximum cap on how much can earn interest. The rate is variable and can be adjusted weekly based on market conditions, though XTB publishes current rates transparently on their website.

XTB is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 522157. Uninvested cash is held in segregated accounts with Barclays Bank, meaning it’s protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person. This is genuine bank deposit protection—not a money market fund arrangement like some competitors use. For a full breakdown of XTB’s features and security, see our comprehensive XTB review.

XTB’s [rate:xtb]% [rate_type:xtb] beats Trading 212’s [rate:trading212_gia]% GIA rate, and unlike Trading 212, your cash is FSCS protected rather than held in QMMFs. Compared to IG, XTB wins on simplicity: there’s no monthly trading requirement to earn interest, whereas IG pays 0% if you don’t trade or hold an open position each month. IG’s promotional [rate:ig_promo]% rate is higher, but only for new customers and capped at [cap:ig_promo]. For ongoing, no-strings interest, XTB leads.

70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

IG – Best for Promotional Rate ([rate:ig_promo]% [rate_type:ig_promo] New Customers)

IG offers [rate:ig_promo]% [rate_type:ig_promo] for new share dealing customers—the highest promotional rate on the market. The rate applies to your first [cap:ig_promo] of uninvested cash and runs until [date:ig_promo]. To qualify, you must open an account by 16 January 2026 and place your first trade by the same date. After the promotion, IG’s standard rate is [rate:ig_standard]% [rate_type:ig_standard], but this requires monthly activity to earn.

Pros & Cons

Highest promotional rate at [rate:ig_promo]% [rate_type:ig_promo]
FSCS protected up to £120,000
Established platform (50+ years in business)
Wide range of investments including ISA and SIPP
Standard rate of [rate:ig_standard]% is competitive

Promo capped at [cap:ig_promo]
Must trade monthly OR hold open position for standard rate
Miss one month = 0% interest that month
£8 dealing fee (or £3 with regular trading)
Tight eligibility window (16 January 2026)

The IG Cash Interest Verdict
What Are IG’s Interest Rate Eligibility Requirements?
Is IG Safe and FSCS Protected?
How Does IG Compare to XTB and Trading 212?

Best for: New customers who can meet the January deadline and will actively trade. The [rate:ig_promo]% promo is unbeatable if you qualify.
Not ideal for: Passive investors who won’t trade monthly. Missing the activity requirement means earning nothing that month.

IG’s promotional [rate:ig_promo]% rate requires you to be a genuinely new customer—no previous IG share dealing ISA, GIA, or SIPP. You must open your account by 16 January 2026 and execute your first trade by the same date. The rate applies to the first [cap:ig_promo] only and ends [date:ig_promo]. For the standard [rate:ig_standard]% rate (up to [cap:ig_standard]), you must either place at least one trade per calendar month OR hold at least one open position. No activity in a given month means 0% interest for that month—there’s no grace period.

IG is authorised and regulated by the FCA and has operated in the UK for over 50 years. Uninvested cash is held in segregated bank accounts and protected by the FSCS up to £120,000 per person. Unlike Trading 212 or Lightyear Vaults, IG doesn’t use money market funds for cash—it’s straightforward bank deposit protection. Read our full IG review for a detailed breakdown of costs and features.

IG’s [rate:ig_promo]% promotional rate beats both XTB ([rate:xtb]%) and Trading 212 ([rate:trading212_gia]%), but only for new customers with a [cap:ig_promo] cap until [date:ig_promo]. For standard rates, IG’s [rate:ig_standard]% falls behind XTB’s [rate:xtb]% and requires monthly activity—a significant drawback for passive investors. Trading 212 offers [rate:trading212_gia]% with no conditions but lacks FSCS protection on cash. If you’re an active trader who qualifies for IG’s promo, it’s the clear winner. For set-and-forget interest, XTB is simpler.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Trading 212 – Best for Commission-Free Investing ([rate:trading212_gia]% [rate_type:trading212_gia])

Use code ‘TIC’ to get a free fractional share worth up to £100

Trading 212 pays [rate:trading212_gia]% [rate_type:trading212_gia] on GIA cash and [rate:trading212_isa]% [rate_type:trading212_isa] on ISA cash with no conditions, no caps, and no trading requirements. New customers receive a 0.67% bonus for 12 months, bringing rates to 4.52% (GIA) and 4.47% (ISA). Interest is calculated daily at 22:00 GMT and paid daily. The critical caveat: cash is held in Qualifying Money Market Funds (QMMFs), not bank deposits, meaning it’s not protected by the FSCS.

Pros & Cons

Competitive [rate:trading212_gia]% with no conditions
Commission-free trading on stocks and ETFs
Interest paid daily (compounds faster)
Free ISA included
New customer bonus (+0.67% for 12 months)

Cash NOT FSCS protected (held in QMMFs)
Rate slightly below XTB’s [rate:xtb]%
Limited fund selection (stocks/ETFs only)
No SIPP available
0.15% FX fee on non-GBP trades

The Trading 212 Cash Interest Verdict
How Does Trading 212 Hold Your Cash (QMMF Explained)?
Is Trading 212 Safe Despite No FSCS on Cash?
How Does Trading 212 Compare to XTB and Freetrade?

Best for: Fee-conscious investors comfortable with QMMF protection who want competitive rates and commission-free trading in one package.
Not ideal for: Risk-averse investors who require FSCS protection on their cash, or those needing funds and SIPPs.

Trading 212 doesn’t hold your uninvested cash in a bank account. Instead, it’s automatically invested in Qualifying Money Market Funds (QMMFs)—specifically BlackRock’s ICS Sterling Liquidity Fund. These are ultra-low-risk investments in short-term government and corporate debt, rated AAA by major credit agencies. The funds are segregated from Trading 212’s own assets, so if the company failed, your money wouldn’t be used to pay creditors. However, because QMMFs are investments rather than bank deposits, they fall outside FSCS protection entirely. We cover this topic comprehensively in our guide to Trading 212 FSCS protection.

Trading 212 is authorised and regulated by the FCA (FRN: 609146). While uninvested cash isn’t FSCS protected, the QMMFs used are AAA-rated and have never “broken the buck” (fallen below £1 per unit). Your investments in stocks and ETFs are protected up to £85,000 under the FSCS investment protection scheme. The platform holds client assets in segregated accounts, and Trading 212 itself is backed by institutional investors. The risk is low but not zero—FSCS protection is a guarantee, QMMFs are not.

Trading 212’s [rate:trading212_gia]% trails XTB’s [rate:xtb]%, but both offer no-conditions interest. The key difference is protection: XTB’s cash is FSCS protected, Trading 212’s is not. Against Freetrade, Trading 212 wins on rate ([rate:trading212_gia]% vs [rate:freetrade_plus]% on Plus tier), has no subscription fee, and no balance caps. Freetrade’s cash is FSCS protected, but the [cap:freetrade_plus] cap on Plus significantly limits earning potential. For pure rate and flexibility, Trading 212 leads among fee-free platforms—if you accept the QMMF trade-off. For a complete breakdown of fees and features, see our Trading 212 review.

*Other fees may apply. See terms and fees.

Trading and investing involve risk. The value of your investments can go up or down, and you may lose all or part of your capital. These products may not be suitable for all investors. Please ensure you fully understand the risks involved.

Interactive Brokers – Best for Large Balances ([rate:ibkr]%+ [rate_type:ibkr])

Interactive Brokers pays up to [rate:ibkr]% [rate_type:ibkr] on GBP cash, but only on balances above £8,000 and only if your total account NAV exceeds $100,000 (approximately £79,000). The first £8,000 earns nothing. For qualifying accounts, the rate is calculated as the Bank of England benchmark minus 0.5%. Interest accrues daily and is paid monthly on the third business day.

Pros & Cons

Competitive rate for large balances ([rate:ibkr]%+)
FSCS protected up to £120,000
Widest investment selection globally
Low margin rates and trading costs
Multi-currency accounts (earn interest in USD, EUR, etc.)

No interest on first £8,000 GBP
Full rate requires NAV above $100,000
Complex platform—steep learning curve
Not beginner-friendly
No ISA available (UK limitation)

The Interactive Brokers Cash Interest Verdict
How Does Interactive Brokers’ Tiered Interest Work?
Is Interactive Brokers Safe and Regulated?
How Does Interactive Brokers Compare to Saxo and IG?

Best for: Sophisticated investors with large portfolios (£80k+) who want institutional-grade rates and global market access.
Not ideal for: Beginners, small account holders, or anyone needing an ISA wrapper.

Interactive Brokers uses a tiered system based on your total Net Asset Value (NAV). If your NAV is below $100,000, you receive a reduced rate—use their online calculator for exact figures. Above $100,000 NAV, you get the full benchmark rate minus 0.5% (currently [rate:ibkr]% for GBP). Critically, no interest is paid on the first £8,000 of GBP cash regardless of NAV. This means a £20,000 cash balance with qualifying NAV earns a blended rate of approximately 2.16%, not the headline [rate:ibkr]%.

Interactive Brokers (UK) Limited is authorised and regulated by the FCA. Cash held in GBP is protected by the FSCS up to £120,000 per person. The parent company, Interactive Brokers Group, is one of the largest electronic brokers globally with over $10 billion in equity capital. Client assets are held in segregated accounts, separate from the firm’s own funds.

Interactive Brokers’ [rate:ibkr]% beats Saxo’s [rate:saxo_vip]% (VIP tier) and matches IG’s standard [rate:ig_standard]% only when accounting for IG’s activity requirement. Unlike IG, IBKR doesn’t require monthly trading—but the £8,000 zero-interest threshold and $100,000 NAV requirement make it unsuitable for smaller accounts. Saxo also pays nothing on the first £5,000. For investors with £100,000+ portfolios who want passive income without trading requirements, IBKR offers superior value.

62.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

eToro – Best for Cash ISA Interest ([rate:etoro_isa]% [rate_type:etoro_isa])

eToro offers two ways to earn interest on cash. The Cash ISA (powered by Moneyfarm) pays [rate:etoro_isa]% [rate_type:etoro_isa] variable—the highest ISA cash rate currently available. For GIA accounts, eToro pays up to [rate:etoro_usd]% on uninvested USD balances only (not GBP). The ISA uses QMMFs for higher yields but isn’t covered by FSCS deposit protection. Interest is calculated daily and paid monthly by the 5th business day.

Pros & Cons

Highest Cash ISA rate at [rate:etoro_isa]% [rate_type:etoro_isa]
GIA offers up to [rate:etoro_usd]% on USD cash
No cap on ISA interest
Copy trading and social features
Stocks and Shares ISA also available

Cash ISA uses QMMFs (not FSCS deposit protected)
GIA interest on USD only—not GBP
Must activate interest feature manually
Boosted ISA rate requires £500 min and max 3 withdrawals/year
Currency conversion fees if holding USD

The eToro Cash Interest Verdict
How Does eToro’s Cash ISA Work?
Is eToro Safe and How Is Cash Protected?
How Does eToro Compare to Trading 212 ISA?

Best for: ISA investors who want the highest headline rate and are comfortable with QMMF protection. Also suits investors who hold USD and want competitive interest without converting to GBP.
Not ideal for: Those seeking FSCS deposit protection on cash, or GBP holders who don’t want currency exposure.

eToro’s Cash ISA is powered by Moneyfarm and pays [rate:etoro_isa]% [rate_type:etoro_isa] variable. Your cash is invested in a Qualifying Money Market Fund (QMMF) holding short-term, low-risk assets. To maintain the boosted rate, you need a minimum £500 balance and can make no more than three withdrawals per year. The rate is variable and linked to the underlying QMMF, so it can change with market conditions. Interest accrues from the next working day after deposit and is paid monthly. For full details, see our eToro ISA review.

eToro (UK) Ltd is authorised and regulated by the FCA. For the Cash ISA, funds are held by MFM Investment Ltd (Moneyfarm) and protected under FSCS investment protection up to £85,000—but this is investment protection, not deposit protection. The QMMF structure means your cash isn’t guaranteed like a bank deposit. For USD cash in your trading account, eToro is covered by FSCS up to £85,000 for eligible investments. Client funds are segregated from eToro’s own assets.

eToro’s Cash ISA ([rate:etoro_isa]%) beats Trading 212’s ISA ([rate:trading212_isa]%), making it the highest ISA cash rate available. Both use QMMFs, so neither offers FSCS deposit protection. The key difference is structure: eToro’s boosted rate requires maintaining £500 minimum and limiting withdrawals, while Trading 212 has no such conditions. For pure flexibility, Trading 212 wins. For highest rate with some restrictions, eToro leads. Both platforms offer commission-free stock trading alongside their ISA products.

CFDs are complex instruments with a high risk of losing money rapidly due to leverage. 61% of retail CFD accounts lose money when trading CFD’s with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Lightyear – Best for Savings Vaults ([rate:lightyear_vaults]% via MMF)

Lightyear offers two ways to earn on cash. Uninvested cash earns [rate:lightyear_cash]% [rate_type:lightyear_cash] with FSCS protection. Alternatively, Savings Vaults pay [rate:lightyear_vaults]% by investing in BlackRock money market funds—but this isn’t FSCS protected (€20,000 Estonian investor protection applies instead). There’s no minimum balance, no lock-in period, and interest is earned daily and paid monthly.

Pros & Cons

Savings Vaults offer [rate:lightyear_vaults]% yield
Uninvested cash option with FSCS ([rate:lightyear_cash]%)
No minimum balance or lock-in
Commission-free trading
Multi-currency accounts available

Savings Vaults NOT FSCS protected
Only €20,000 Estonian protection on Vaults
0.20% annual fee on Savings Vaults
FSCS cash rate ([rate:lightyear_cash]%) is uncompetitive
No ISA or SIPP available

The Lightyear Cash Interest Verdict
What’s the Difference Between Lightyear Cash and Vaults?
Is Lightyear Safe and How Is It Regulated?
How Does Lightyear Compare to Trading 212?

Best for: Investors who want flexibility to choose between FSCS-protected cash (lower rate) or higher-yielding money market funds (no FSCS).
Not ideal for: Those who require FSCS protection and competitive rates simultaneously—you must choose one or the other with Lightyear.

Uninvested cash in your Lightyear account earns [rate:lightyear_cash]% [rate_type:lightyear_cash] and is held in a UK bank account with FSCS protection up to £120,000. Savings Vaults are different—your money is invested in AAA-rated BlackRock money market funds (risk rating 1/7). Vaults earn [rate:lightyear_vaults]% but carry a 0.20% annual fee and fall outside FSCS protection. Instead, Vaults are covered by Estonian investor protection up to €20,000. You can move money between cash and Vaults instantly.

Lightyear Europe AS is authorised by the Estonian Financial Supervision Authority. For UK customers, uninvested cash held in GBP is protected by the FSCS up to £120,000 through Lightyear’s UK banking partner. Investments (including Savings Vaults) are covered by Estonian investor protection up to €20,000—significantly less than UK FSCS limits. The platform segregates client assets from company funds.

Both platforms use money market funds for higher yields: Lightyear Vaults at [rate:lightyear_vaults]% vs Trading 212 at [rate:trading212_gia]%. Neither offers FSCS protection on these products. The key difference is choice—Lightyear lets you keep cash in an FSCS-protected account (at [rate:lightyear_cash]%), while Trading 212 automatically places all cash into QMMFs. If you want the option to prioritise protection over yield, Lightyear offers more flexibility. For a single higher rate with no decisions, Trading 212 is simpler.

Freetrade – Best Subscription Model (Up to [rate:freetrade_plus]% [rate_type:freetrade_plus])

Freetrade pays interest on uninvested cash through its subscription tiers, but rates dropped significantly on 1 January 2026. Plus subscribers (£9.99/month) now earn [rate:freetrade_plus]% [rate_type:freetrade_plus] on up to [cap:freetrade_plus]—down from 5.00%. Standard subscribers (£4.99/month) earn [rate:freetrade_standard]% [rate_type:freetrade_standard] on up to [cap:freetrade_standard]—down from 3.00%. Cash is FSCS protected, but the low caps limit earning potential.

Pros & Cons

FSCS protected up to £120,000
ISA and SIPP available
Commission-free trading
User-friendly mobile app
Interest paid automatically

Rates cut significantly (Jan 2026)
Low caps: [cap:freetrade_plus] max on Plus tier
Requires paid subscription
Basic tier only earns 1% on £1,000
Caps apply across GIA + ISA + SIPP combined

The Freetrade Cash Interest Verdict
How Do Freetrade’s Interest Tiers Work?
Is Freetrade Safe and FSCS Protected?
How Does Freetrade Compare to Trading 212?

Best for: Existing Freetrade subscribers who value the app experience and want some FSCS-protected interest as a bonus feature.
Not ideal for: Anyone prioritising cash interest—the January 2026 rate cuts and low caps make Freetrade uncompetitive for this purpose.

Freetrade offers three subscription tiers with different interest rates and caps. Basic (free) pays 1.00% [rate_type:freetrade_plus] on up to £1,000. Standard (£4.99/month) pays [rate:freetrade_standard]% [rate_type:freetrade_standard] on up to [cap:freetrade_standard]. Plus (£9.99/month) pays [rate:freetrade_plus]% [rate_type:freetrade_plus] on up to [cap:freetrade_plus]. These caps apply to your combined cash balance across all account types—GIA, ISA, and SIPP together, not separately. Interest is calculated daily and paid on the 11th working day of the following month.

Freetrade is authorised and regulated by the FCA (FRN: 771279). Uninvested cash is held in segregated bank accounts and protected by the FSCS up to £120,000 per person. Unlike Trading 212, Freetrade doesn’t use money market funds—your cash sits in genuine bank deposits. Investments are separately protected up to £85,000 under the FSCS investment scheme.

After January 2026’s rate cuts, Trading 212 offers better value for cash interest. Trading 212 pays [rate:trading212_gia]% with no cap and no subscription fee, versus Freetrade’s [rate:freetrade_plus]% capped at [cap:freetrade_plus] with a £9.99 monthly fee. The trade-off is protection: Freetrade’s cash is FSCS protected, Trading 212’s is not. If FSCS protection is non-negotiable, Freetrade still delivers—but the [cap:freetrade_plus] cap means you’d earn a maximum of £105/year before the subscription cost.

How Do I Choose the Right Platform for Cash Interest?

The best platform depends on your priorities. Use this framework to decide:

Prioritise rate above all else? IG’s [rate:ig_promo]% promotional rate leads if you qualify (new customer, open by 16 January 2026). For ongoing rates without conditions, XTB’s [rate:xtb]% is the highest FSCS-protected option.

Need FSCS protection? Choose XTB ([rate:xtb]%), IG ([rate:ig_standard]% with activity), or Freetrade ([rate:freetrade_plus]% capped). Avoid Trading 212, Lightyear Vaults, and eToro’s Cash ISA if FSCS deposit protection is essential.

Want no conditions or trading requirements? XTB and Trading 212 both pay interest automatically with no activity requirements. IG requires monthly trading to earn its standard rate.

Have a large balance (£80k+)? Interactive Brokers becomes competitive at higher balances where the £8,000 zero-interest threshold has less impact on your blended rate.

ISA investor? eToro’s Cash ISA leads at [rate:etoro_isa]% (QMMF-based). Trading 212 offers [rate:trading212_isa]% also via QMMF. Traditional platforms like HL and ii offer lower rates (under 2.5%) but with genuine bank deposit protection. For a wider comparison of platforms beyond cash interest, see our guide to the best investment platforms UK.

Cash Interest Protection Explained: FSCS vs QMMF

Not all platform cash is protected equally. Understanding the difference between FSCS-protected bank deposits and Qualifying Money Market Funds (QMMFs) is essential before choosing where to hold your cash.

What Is the Difference Between FSCS Protection and QMMFs?

FSCS-protected cash is held in bank deposits with UK-authorised banks. If the bank fails, the Financial Services Compensation Scheme guarantees you’ll get back up to £120,000 per person, per institution. This is a government-backed guarantee—your money is safe regardless of market conditions.

QMMFs (Qualifying Money Market Funds) are investment products, not bank deposits. Platforms like Trading 212, Lightyear Vaults, and eToro’s Cash ISA place your cash into AAA-rated money market funds that invest in short-term government and corporate debt. These funds are extremely low-risk and have historically maintained stable values, but they’re not guaranteed. If the underlying investments fell in value (however unlikely), you could lose money. QMMFs don’t qualify for FSCS deposit protection.

Platform	Cash Held In	FSCS Protected?	Protection Limit
[name:xtb]	Bank deposit (Barclays)	Yes	£120000
[name:ig_standard]	Bank deposit	Yes	£120000
[name:freetrade_plus]	Bank deposit	Yes	£120000
[name:ibkr]	Bank deposit	Yes	£120000
[name:lightyear_cash]	Bank deposit	Yes	£120000
[name:trading212_gia]	QMMF (BlackRock)	No	N/A
[name:lightyear_vaults]	QMMF (BlackRock)	No	€20000 (Estonian)
[name:etoro_isa]	QMMF (Moneyfarm)	No	£85000 (investment)

What Is the Current FSCS Protection Limit?

The FSCS protection limit for eligible deposits is £120,000 per person, per authorised institution. This limit was increased from £85,000 in December 2025. The higher limit applies to all eligible deposits held with UK-authorised banks and building societies. If you hold cash across multiple platforms that use the same underlying bank, your total protection is still capped at £120,000 with that bank—not per platform.

What Are the Tax Implications for Interest on Investment Platforms?

Interest earned on uninvested cash is taxable income, but you may not owe anything depending on your tax band and whether you use an ISA.

How Does the Personal Savings Allowance Apply?

Interest earned in a General Investment Account (GIA) counts towards your Personal Savings Allowance (PSA). Basic rate taxpayers (20%) can earn up to £1,000 in savings interest tax-free each year. Higher rate taxpayers (40%) get a £500 allowance. Additional rate taxpayers (45%) receive no PSA—all interest is taxable. If your platform interest combined with bank account interest exceeds your PSA, you’ll pay tax on the excess at your marginal rate. HMRC typically collects this through your tax code.

Why Might an ISA Be Better for Cash Interest?

Interest earned within an ISA is completely tax-free and doesn’t count towards your Personal Savings Allowance. If you’re earning significant interest (above your PSA) or you’re a higher/additional rate taxpayer, holding cash in an ISA can provide meaningful tax savings. For example, a higher rate taxpayer earning 4% on £20,000 in a GIA would pay £160 in tax annually (after using their £500 PSA). The same cash in an ISA would owe nothing. Platforms like eToro ([rate:etoro_isa]%) and Trading 212 ([rate:trading212_isa]%) offer the highest ISA cash rates, though both use QMMFs.

Final Thoughts

The UK investment platform market offers genuinely competitive cash interest rates in 2026, with the Bank of England base rate at [rate:base_rate]% providing a strong foundation. Your choice comes down to three factors: rate, protection, and conditions.

For the highest rate without complications, XTB’s [rate:xtb]% [rate_type:xtb] stands alone—no caps, no trading requirements, and full FSCS protection. If you’re a new customer who can act quickly, IG’s [rate:ig_promo]% promotional rate is unmatched, though the 16 January 2026 deadline and [cap:ig_promo] cap limit its appeal.

The protection question matters. Trading 212, Lightyear Vaults, and eToro’s Cash ISA offer competitive rates through money market funds, but your cash isn’t FSCS deposit guaranteed. For most investors, the peace of mind from FSCS protection outweighs an extra 0.5% in yield. If you’re holding significant cash (above £10,000), that guarantee becomes increasingly valuable.

ISA investors should note that eToro’s Cash ISA leads at [rate:etoro_isa]%—the highest available. However, it uses QMMFs via Moneyfarm, so it lacks FSCS deposit protection. If you need FSCS-protected ISA cash, traditional platforms offer lower rates.

Rates will change as the Bank of England adjusts monetary policy. We update this guide monthly to reflect current rates—bookmark this page and check back before making decisions.

Quick Recommendations by User Type

Your Priority	Best Platform	Rate
Highest rate, no conditions	[name:xtb]	[rate:xtb]% [rate_type:xtb]
New customer, willing to trade	IG (Promotional)	[rate:ig_promo]% [rate_type:ig_promo]
ISA (highest rate, QMMF)	[name:etoro_isa]	[rate:etoro_isa]% [rate_type:etoro_isa]
Fee-free (QMMF acceptable)	[name:trading212_gia]	[rate:trading212_gia]% [rate_type:trading212_gia]
Large balance (£80k+)	[name:ibkr]	[rate:ibkr]%+ [rate_type:ibkr]
FSCS + subscription model	[name:freetrade_plus]	[rate:freetrade_plus]% [rate_type:freetrade_plus]

Not Sure Which Platform to Choose?

Answer 5 quick questions and we’ll provide a personalised recommendation for the best options tailored to your specific needs and experience level.

Top 5 Apps

FAQs

What Is Interest on Uninvested Cash?

Interest on uninvested cash is the return paid by investment platforms on money sitting in your account that hasn’t been invested in stocks, funds, or other assets. It works similarly to a savings account—your cash earns interest while you decide what to invest in or keep funds readily available for opportunities. Most platforms calculate interest daily and pay monthly, though payment frequency varies.

What Is the Highest Interest Rate on Uninvested Cash in the UK?

As of January 2026, IG offers the highest promotional rate at 7.5% AER for new customers (on the first £10,000, until 31 March 2026). For standard rates with no conditions, XTB leads at 4.00% AER with full FSCS protection. eToro’s Cash ISA offers 4.65% AER, though this uses QMMFs rather than FSCS-protected deposits. Lightyear Savings Vaults offer 4.35% also through money market funds.

Is Trading 212 Cash Interest FSCS Protected?

No. Trading 212 holds uninvested cash in Qualifying Money Market Funds (QMMFs), which are investments rather than bank deposits. This means your cash isn’t covered by the FSCS £120,000 deposit guarantee. However, these funds are segregated from Trading 212’s assets, invested in AAA-rated money market instruments, and have historically maintained stable values. Your investments in stocks and ETFs are separately protected up to £85,000.

Do I Need to Trade to Earn Interest on My Investment Platform?

It depends on the platform. Most platforms pay interest automatically with no trading requirement—including XTB, Trading 212, Freetrade, Lightyear, and eToro. However, IG requires at least one trade or one open position per calendar month to earn its standard 3.75% rate. If you don’t meet IG’s activity requirement in a given month, you earn 0% interest for that month with no grace period.

What Is the FSCS Limit for Investment Platforms?

The FSCS protects eligible cash deposits up to £120,000 per person, per authorised institution. This limit was increased from £85,000 in December 2025. Only cash held in bank deposits qualifies—money in QMMFs (like Trading 212, Lightyear Vaults, and eToro’s Cash ISA use) is not covered by FSCS deposit protection. If multiple platforms use the same underlying bank, your combined protection with that bank is still capped at £120,000.

Is Interest on Uninvested Cash Taxable?

Yes, interest earned in a General Investment Account (GIA) is taxable and counts towards your Personal Savings Allowance. Basic rate taxpayers can earn £1,000 tax-free, higher rate taxpayers get £500, and additional rate taxpayers have no allowance. However, interest earned within an ISA is completely tax-free and doesn’t affect your PSA. For larger cash balances, holding funds in an ISA can provide meaningful tax savings.

References

XTB Interest Rates – xtb.com/en/interest
IG Share Dealing Interest – ig.com/uk/investments/share-dealing
Trading 212 Interest on Cash – trading212.com/interest-on-cash
Interactive Brokers Interest Rates – interactivebrokers.co.uk/en/accounts/fees/pricing-interest-rates.php
eToro Interest on Balance – etoro.com/investing/interest-on-balance
eToro Cash ISA – etoro.com/investing/cash-isa
Lightyear Savings Vaults – lightyear.com/en-gb/vaults/gbp
Freetrade Subscription Plans – freetrade.io/plus-plan
Financial Services Compensation Scheme – fscs.org.uk
Bank of England Base Rate – bankofengland.co.uk/monetary-policy
HMRC Personal Savings Allowance – gov.uk/apply-tax-free-interest-on-savings

Best Investment Platforms for Interest on Cash UK (2026) | Compare Rates & Protection

Quick Answer

How Do These Investment Platforms Compare for Cash Interest?

Here Are The Top 7 Best Platforms for Interest on Uninvested Cash, Ranked

XTB – Best for Unconditional High Interest ([rate:xtb]% [rate_type:xtb])

Pros & Cons

The XTB Cash Interest Verdict

How Does XTB Calculate and Pay Interest?

Is XTB Safe and How Is Cash Protected?

How Does XTB Compare to Trading 212 and IG?

IG – Best for Promotional Rate ([rate:ig_promo]% [rate_type:ig_promo] New Customers)

Pros & Cons

The IG Cash Interest Verdict

What Are IG’s Interest Rate Eligibility Requirements?

Is IG Safe and FSCS Protected?

How Does IG Compare to XTB and Trading 212?

Trading 212 – Best for Commission-Free Investing ([rate:trading212_gia]% [rate_type:trading212_gia])

Pros & Cons

The Trading 212 Cash Interest Verdict

How Does Trading 212 Hold Your Cash (QMMF Explained)?

Is Trading 212 Safe Despite No FSCS on Cash?

How Does Trading 212 Compare to XTB and Freetrade?

Interactive Brokers – Best for Large Balances ([rate:ibkr]%+ [rate_type:ibkr])

Pros & Cons

The Interactive Brokers Cash Interest Verdict

How Does Interactive Brokers’ Tiered Interest Work?

Is Interactive Brokers Safe and Regulated?

How Does Interactive Brokers Compare to Saxo and IG?

eToro – Best for Cash ISA Interest ([rate:etoro_isa]% [rate_type:etoro_isa])

Pros & Cons

The eToro Cash Interest Verdict

How Does eToro’s Cash ISA Work?

Is eToro Safe and How Is Cash Protected?

How Does eToro Compare to Trading 212 ISA?

Lightyear – Best for Savings Vaults ([rate:lightyear_vaults]% via MMF)

Pros & Cons

The Lightyear Cash Interest Verdict

What’s the Difference Between Lightyear Cash and Vaults?

Is Lightyear Safe and How Is It Regulated?

How Does Lightyear Compare to Trading 212?

Freetrade – Best Subscription Model (Up to [rate:freetrade_plus]% [rate_type:freetrade_plus])

Pros & Cons

The Freetrade Cash Interest Verdict

How Do Freetrade’s Interest Tiers Work?

Is Freetrade Safe and FSCS Protected?

How Does Freetrade Compare to Trading 212?

How Do I Choose the Right Platform for Cash Interest?

Cash Interest Protection Explained: FSCS vs QMMF

What Is the Difference Between FSCS Protection and QMMFs?

What Is the Current FSCS Protection Limit?

What Are the Tax Implications for Interest on Investment Platforms?

How Does the Personal Savings Allowance Apply?

Why Might an ISA Be Better for Cash Interest?

Final Thoughts

Quick Recommendations by User Type

FAQs

References

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