Building Freetrade

Earn 3% interest on cash in Freetrade Plus

Sam Poullain

December 1, 2020

Sam Poullain

Brand new for Plus members, up to a max deposit of £4k.

Cash can be a drag on your returns.

Given its typical return of zero, cash decreases your potential return when you hold it in your investment portfolio over the long term.

We also know that having cash in accounts is important to lots of customers who may be waiting for the right investment opportunity.

If you end up holding cash in between trades, you should do so in a way that helps to reduce that drag on your returns as well as the effects of inflation.

That's why we're launching interest on uninvested cash today for all Plus members.

This new feature of Plus is a 3% interest on cash, up to a max deposit of £4,000.

This is the latest improvement we are shipping as part of your Freetrade Plus membership, which also includes:

  • Limit orders
  • Stocks and shares ISA 
  • Priority customer support
  • Access to thousands more stocks, ETFs, and trusts

How does the 3% rate work?

This is a 3% annual equivalent rate (AER) which is paid to you on a monthly basis. You can put it toward your next investment, reduce the cost of your membership, or withdraw it anytime and have lunch on us.

What exactly counts towards total cash when calculating interest?

The interest is calculated on total cash, so unsettled and reserved cash balances are included.

When will I be paid the interest?

Your monthly interest payment is made on the 11th working day of each month for interest accrued on the previous month’s holdings.

The interest is paid directly into your balance monthly, for every day that month you’re holding cash.

I’m a Plus member with an ISA and a GIA, where will I receive the payment?

We will give preference to your ISA followed by your GIA.

Let’s say you are waiting to invest £5,000 across your two Freetrade accounts: you have £3,000 cash in your ISA and £2,000 in your GIA. We will apply the interest to the full £3,000 in the ISA first, and then to the £1,000 remaining in your £4,000 cash cap from the GIA.

The interest payment will then be split accordingly into the two accounts.

What happens if I’ve maxed out my ISA allowance for the year?

You cannot make any more deposits into your ISA. However, any interest you earn on cash holdings in your ISA will be classed as a return on investment and is not part of your annual allowance. 

When does this start?

Today! The feature is live right now, Tuesday 1st Dec 2020. The interest payments will start next month, in January 2021.

Please keep in mind that the Freetrade GIA and ISA are not savings accounts, and holding cash there is only appropriate if you plan to use it to place a trade in due course. Read more about what to do with cash in this latest Invest Hub explainer.

Read more FAQs here.

When you invest, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. 

Tax rules for ISAs can change and their benefits depend on your circumstances.

Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

The views expressed above are those of community members and do not reflect the views of Freetrade. It is not investment advice and we always encourage you to do your own research.

Simple pricing plans

Choose how you'd like to pay:


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GIA pink
General investment account


  • Commission-free trades (other charges may apply. See full pricing table.)
  • Trade USD & EUR stocks at the exchange rate + a 0.99% FX fee
  • Fractional US Shares
  • Access to more than 4,800 stocks, including the most popular shares and ETFs

£59.88 billed annually


Billed monthly


GIA white
General investment account
Stocks and shares ISA

Everything in Basic, plus:

  • Full range of over 6,000 US, UK and EU stocks and ETFs
  • Trade USD & EUR stocks at the exchange rate + a 0.59% FX fee
  • Automated order types
  • Advanced stock fundamentals
  • 1% on uninvested cash, up to a maximum of £2,000

£119.88 billed annually


Billed monthly


GIA white
General investment account
Stocks and shares ISA
SIPP white
Self-invested personal pension (SIPP)

Everything in Standard, plus:

  • 3% on uninvested cash, up to a maximum of £4,000
  • Trade USD & EUR stocks at the exchange rate + a 0.39% FX fee
  • Priority customer service
  • Freetrade Web beta

Download the app to start investing now

When you invest your capital is at risk.