When I wanted to use T212 to earn interest on my uninvested cash, I received a disclaimer stating that I would actually be putting my money in QMMF. Can I actually lose my money, or is it just in extreme conditions that I won’t earn interest at all? Also do i understand right i get the fracture of the interest daily not monthly (like at Lightyear)
Hey everyone, just saw Trading 212 offers interest on uninvested cash. Sounds like a decent way to earn a bit on the side, especially with rates being what they are. Is there any catch here? Thoughts?
Compared it to my bank’s savings account and other brokerages, and it’s actually pretty competitive. EUR % is 4.2%, USD is 5.1%.
The real value depends on your trading style. If you’re an active trader, the uninvested cash might not sit long enough to earn significant interest. But for more passive investors, it could be a nice way to squeeze out a bit more from your portfolio.
I’m keeping a larger cash buffer in my account now to take advantage of the interest. It’s a good way to earn something on funds while waiting for the right investment opportunity. Alternative way could be to earn interest if you put money into money market funds. Some ETFs are available at T212 too.
Remember, cash not invested is also an opportunity cost. The interest is nice, but it’s usually better to have your money working for you in investments. Find the right balance.