Does Interactive Investor pay interest on uninvested cash as of December 2024?
If you have uninvested cash lying around on your brokerage account, you should make it work for you in a low-risk way instead of letting it lose value. Many brokers now offer meaningful interest on your idle cash.
Good news! Interactive Investor pays interest on uninvested cash in several currencies. Its overall interest rate conditions are average compared to other brokers.
I have personal experience with dozens of global brokers and have taken a closer look at which pay interest on cash, and under what conditions. Here are my key insights regarding earning interest on cash at Interactive Investor:
- Interactive Investor offers interest on uninvested funds, e.g. up to 4.0% on USD.
- The interest rate offering is overall average compared to other brokers.
- Be aware that special conditions may apply, such as a minimum required balance.
- Check the best brokers for cash interest to find brokers that offer the most attractive rates.
Earn up to 4.0% on USD at Interactive Investor
Earning interest on uninvested cash in a brokerage account is a useful, low-risk way to preserve the value of your money. However, there can be significant differences among brokers when it comes to interest: some don't pay anything, while some brokers pay higher rates than banks.
Interactive Investor pays interest on uninvested cash in several currencies: you can earn up to 4.0% on USD, for example.
What are the benefits of getting interest on uninvested cash?
- Earn additional money without active investing, preserving its value against inflation.
- Keep cash easily accessible while generating returns.
- By leaving idle cash on the account, you can save on potential withdrawal or conversion fees.
- Offers a low-risk, hassle-free option compared to market investments.
- Affords flexibility, providing time to plan investments without losing potential earnings.
While earning interest on your uninvested cash is great, there are a few things to keep in mind:
- The advertised interest rate is annual, so you'll need to divide this by the number of months or days to understand your actual earnings. Interest is typically accumulated daily but paid monthly.
- You may need to pay tax on the interest you earn. The tax typically depends on your country of residency, and is not deducted by the broker. It is your responsibility to report and pay the taxes.
- In most cases, there's little reason to worry about safety when keeping cash in your broker account. In the US, for example, cash holdings are insured up to $250,000.
- Be on the lookout for any special conditions the broker may set in order to pay interest, such as a minimum balance requirement.
- If you maintain a broker account solely for the purpose of earning interest on your cash, choose a broker that doesn't charge an inactivity fee or regular account fee.
Interest rates at Interactive Investor are average
In order to have a verdict on how Interactive Investor stacks up against other brokers on the market with regard to interest rates on uninvested cash, we looked at several factors:
- How many currencies it pays interest on: just one or several? Brokers that pay interest on only one currency score lower than others.
- What the interest rates are: naturally, the higher the better.
- Are there any conditions? We took two cases: the maximum interest you can earn, and the interest you can earn on $10,000. Brokers that offer interest already on low amounts, without any conditions, got a better rating.
Based on these factors, we found that Interactive Investor's overall offering for interest on uninvested cash is average.
You can find the detailed data in the table below, for three major currencies (USD, EUR, GBP), as well as whether there is an inactivity fee.
|
USD maximum cash yield
|
4.0% | - | - |
|---|---|---|---|
|
USD cash yield in a $10k scenario
|
1.5% | - | - |
|
EUR maximum cash yield
|
1.5% | - | - |
|
EUR cash yield in a €10k scenario
|
1.5% | - | - |
|
GBP maximum cash yield
|
4.0% | 2.0% | 3.7% |
|
GBP cash yield in a £10k scenario
|
1.5% | 1.8% | 3.0% |
|
Inactivity fee
|
No
|
No
|
No
|
Data updated on December 18, 2024
You can also check out cash interest rates and conditions at other brokers:
'Conditions may apply': check the fine print for receiving interest
The interest you can earn on uninvested cash in your brokerage account may vary depending on different factors, so you should always check the exact conditions that apply.
The most frequent factors that usually influence the rate you will get are account type, minimum balance requirements, and account size, for example.
Below you can find all the information we have on cash interest at Interactive Investor, straight from our Interactive Investor review:
Cash interest
As of September 1, 2024, Interactive Investor pays interest on uninvested cash as per the table below.
| Account balance | Trading & ISA accounts | SIPP accounts |
|---|---|---|
| Up to £10k | 1.75% | 2.75% |
| £10k - £100k | 2.50% | 3.50% |
| Above £100k | 3.50% | 3.75% |
The same rates apply for cash held in USD.
For EUR cash balances, the broker pays 1.75% on trading accounts and 2.75% for SIPP accounts.
Find the best brokers for earning interest on your uninvested cash
Does your broker not offer any interest on idle cash? Or do you want to check whether its interest rates are competitive with the rest of the market?
Check our toplist of the best brokers for cash interest to find brokers with the most attractive rates.
Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.
Further reading
- Diversifying your investments
- Interactive Investor stock conditions explained
- Stock trading at Interactive Investor: an expert guide and rating
- Interactive Investor penny stocks trading conditions explained
- ETF trading conditions at Interactive Investor explained
- Interactive Investor fractional shares trading conditions explained
- Are margin interest rates low at Interactive Investor?
- Interactive Investor ESG investing
- Interactive Investor invest $100,000
- Interactive Investor IPO accessibility
- Interactive Investor Mexican stocks trading availability
- Interactive Investor US stock trading details
- Interactive Investor Australian stocks trading availability
- Interactive Investor Canadian stocks trading availability
- Interactive Investor Japanese stocks trading availability
- Interactive Investor French stocks trading availability
- Interactive Investor Italian stocks trading availability
- Interactive Investor Swiss stocks trading availability
- Interactive Investor Hong Kong stocks trading availability
- Interactive Investor Dutch stocks trading availability
- Interactive Investor Spanish stocks trading availability
- Interactive Investor Singapore stocks trading availability
- Interactive Investor Swedish stocks trading availability
- Interactive Investor Norwegian stocks trading availability
Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.
