Earning interest on cash FAQs and exclusions

Share Dealing Account Information

How does it work?

We pay interest at 3.75% AER variable on uninvested GBP cash held in your account, subject to the following conditions:

Interest is conditional and only paid if eligibility requirements are met
Interest is paid on eligible uninvested cash balances (for example, cash available in your account)
Interest applies to GBP balances only (not other currencies)
Interest is paid on total eligible cash balances up to £100,000 per client across all accounts (GIA, ISA, SIPP)
Any cash held above £100,000 will remain in your account as normal but will not earn interest
Interest is calculated on daily balances throughout the calendar month
Interest is paid in the following month

Eligibility requirements

Eligibility is assessed at client level, not account level. This means that if you meet the activity requirement in any one of your accounts, interest will be applied across all your eligible accounts for that month.

To earn interest in a calendar month, you must meet at least one of the following conditions:

Hold an open position at any point during the month in an eligible account
Complete at least one buy or sell trade during the month in an eligible account
Hold an active Smart Portfolio — meaning a Smart Portfolio with an invested balance

Note: A single qualifying activity in any one account activates interest across all your accounts for that month.

Eligible account types

All of the following account types qualify as activity for interest eligibility:

Account type	Qualifies for activity?
Stocks and shares GIA	✓ Yes
Stocks and shares ISA	✓ Yes
Stocks and shares SIPP	✓ Yes
Smart Portfolio GIA	✓ Yes
Smart Portfolio ISA	✓ Yes
Smart Portfolio SIPP	✓ Yes

What is an active Smart Portfolio?

A Smart Portfolio is considered active when it has an invested balance. A Smart Portfolio with no invested capital does not count as active.

How interest is calculated

Interest is calculated daily using the following formula:

Daily interest = Daily balance × (3.75% ÷ 365)

The 3.75% AER variable rate is subject to change. We may notify you of changes where required.

Interest payment examples

Example 1 — Single account, large balance You have £500,000 in a GIA with an active Smart Portfolio.

Only the first £100,000 earns interest
Monthly interest (30 days): (£100,000 × 3.75%) ÷ 365 × 30 = £308.22

Example 2 — Multiple accounts, under the cap You have £25,000 in an ISA and £20,000 in a SIPP (total £45,000), with at least one qualifying trade during the month.

ISA: (£25,000 × 3.75%) ÷ 365 × 30 = £77.05
SIPP: (£20,000 × 3.75%) ÷ 365 × 30 = £61.64
Total monthly interest: £138.69

Example 3 — Multiple accounts, exceeding the cap You have £50,000 in each of three accounts (total £150,000), with active trading.

Only £100,000 is eligible (the cap)
Interest is distributed proportionally across accounts based on average balance
Each account holds 33.33% of your total balance
Monthly interest on £100,000 cap (31 days): £318.49
Each account receives approximately £106.16

Example 4 — Multi-currency account You hold GBP and USD balances across your accounts.

Only your GBP balance earns interest
USD, EUR and other currencies do not earn interest

Tax treatment

The tax treatment of interest depends on the account type:

GIA — interest is taxable income. You may need to declare this to HMRC depending on your personal tax position
ISA — interest is received free of UK income tax

For other account types, or if you are unsure of your tax position, please seek independent financial advice. Tax laws are subject to change and depend on individual circumstances.

FSCS protection and client money

The interest cap and FSCS protection are separate and should not be confused.

IG Group protects client money and assets in line with FCA rules. Client funds are held separately (segregated) from IG’s own money. This means that, if IG were to fail, client money should be returned from the banks where it is held or by the appointed administrators, in accordance with applicable safeguarding arrangements.

If IG were to become insolvent:

Client money remains segregated from IG's own funds
If any money cannot be recovered, eligible clients may claim up to £85,000 from the Financial Services Compensation Scheme (FSCS)
The £120,000 FSCS limit does not apply in this scenario

If a client money bank were to fail:

Clients may have a separate claim against that bank
In this case, eligible clients may claim up to £120,000 from the FSCS for any shortfall

For more information on how your money is held, visit What we do with your money.

FAQs

What if I don't trade in a particular month?

If you have no qualifying activity during a calendar month — no open positions, no trades, and no active Smart Portfolio — you will not earn interest for that month.

Does a single trade qualify me for the whole month?

Yes. A single qualifying activity at any point during the calendar month activates interest for the full month across all your accounts.

I have more than £100,000 cash across my accounts. Will it all earn interest?

No. Interest is capped at £100,000 per client across all accounts. Any cash above this threshold does not earn interest.

How is the £100k cap distributed across multiple accounts?

The cap is applied at client level. If you hold balances across multiple accounts that together exceed £100,000, interest is distributed proportionally across your accounts based on average balance.

I have funds in multiple currencies. Will they all earn interest?

No. Interest is only paid on GBP balances. Other currencies (USD, EUR, etc.) do not earn interest.

Does money tied up in open positions earn interest?

No. Only uninvested cash earns interest. Profits or losses from open positions do not earn interest.

When will interest be paid?

Interest is calculated daily based on your cash balance throughout the calendar month and paid in the following calendar month.

What if I open an account mid-month?

Interest will be calculated from the day your account is opened, provided you meet the activity requirements for that month.

What if I close my account?

If your account is closed at the point when interest is due to be paid, interest will not be paid for that period.

What if I don't want to receive interest?

If you wish to opt out, please contact us via Live Chat or WhatsApp and request to deactivate the interest feature on your account.

Does interest apply to each account separately?

No. Interest eligibility is assessed at client level. If you meet the activity requirement in one account, interest will apply to eligible balances across all your accounts, subject to the £100,000 cap.

Will the interest rate change?

The 3.75% AER rate is variable and may change at any time.