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 the 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. USD, EUR, AUD and any other non-GBP balances do not earn interest
Interest is paid on total eligible cash balances up to £100,000 per client across all accounts (GIA, ISA and SIPP)
Any cash held above £100,000 remains in your account as normal but does not earn interest
Interest is calculated on your eligible cash balance each day
For share dealing accounts, interest is paid daily
For Smart Portfolio accounts, interest is calculated daily and paid monthly
Interest paid to you is added to your cash balance and forms part of the balance used for the next day's calculation, subject to the £100,000 cap
Interest payments of less than £0.01 will not be paid out
Eligibility requirements
Eligibility is assessed at client level, but the qualifying activity must take place in an eligible account. If you meet the requirement in one eligible account, interest applies to eligible cash across your other eligible accounts.
To earn interest, you must have completed qualifying activity in an eligible account within the previous 30 days. This includes:
Holding an open position in an eligible UK share dealing account (GIA, ISA or SIPP), where the position has a value greater than £0
Completing at least one buy or sell trade in an eligible UK share dealing account
Holding an active Smart Portfolio, meaning a Smart Portfolio with an invested balance
If you continue to hold an eligible investment, you remain eligible for interest for as long as you continue to hold it.
If you sell your last investment, the sale itself counts as qualifying activity and keeps you eligible for interest for 30 days after the sale.
Transfers of existing investments into your account do not count as qualifying activity. Fractional share trades do count.
Note: A single qualifying activity in any one eligible account activates interest across all your eligible accounts. Because the assessment uses a rolling 30 day window, your eligibility is checked each day.
For example, if you complete a qualifying activity on 15 September and don't complete any further qualifying activity, that activity keeps you eligible through 15 October.
Eligible account types
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 |
Important: the account types listed above are the only account types that qualify for interest eligibility. Spread betting and CFD accounts are not eligible, and trades or open positions in these accounts do not count towards the qualifying activity requirement.
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
The 3.75% AER is delivered as a nominal rate of 3.681% compounded daily. The daily rate applied to your eligible balance is 3.681% divided by 365, which is 0.0100857%.
Daily interest = eligible daily balance × 0.0100857%
At the £100,000 cap, the maximum interest payable is £10.09 per day per client. The minimum daily payment is £0.01, so a balance of less than approximately £99 does not generate a payment for that day.
The 3.75% AER variable rate is subject to change. We may notify you of changes where required.
Daily and annual interest by balance
Balance | Daily interest | Annual earnings (3.75% AER) |
£100 | £0.01 | £3.75 |
£1,000 | £0.10 | £37.50 |
£10,000 | £1.01 | £375.00 |
£20,000 | £2.02 | £750.00 |
£30,000 | £3.03 | £1,125.00 |
£40,000 | £4.03 | £1,500.00 |
£50,000 | £5.04 | £1,875.00 |
£60,000 | £6.05 | £2,250.00 |
£70,000 | £7.06 | £2,625.00 |
£80,000 | £8.07 | £3,000.00 |
£90,000 | £9.08 | £3,375.00 |
£100,000 (cap) | £10.09 | £3,681.30 |
Annual earnings assume the balance and your eligibility remain unchanged for a full year. At the £100,000 cap the annual figure is lower than 3.75% because interest credited above the cap does not itself earn interest.
Interest payment examples
Example 1: single account, large balance
You have £500,000 in a share dealing GIA and meet the activity requirement. Only the first £100,000 earns interest, so your daily interest is £100,000 × 0.0100857% = £10.09.
Example 2: single account, under the cap
You have £25,000 in a stocks and shares ISA and meet the activity requirement. Your daily interest is £25,000 × 0.0100857% = £2.52.
Example 3: two accounts, at the cap
You have £100,000 in each of two eligible accounts, £200,000 in total. Only £100,000 is eligible, so total daily interest is £10.09. The cap is split proportionally, and each account holds 50% of your total balance, so each account receives £5.04 per day.
Example 4: three accounts, exceeding the cap
You have £50,000 in each of three eligible accounts, £150,000 in total. Only £100,000 is eligible. Each account holds 33.33% of your total balance, so each receives approximately £3.36 per day.
Example 5: small balance in a second account
You have £100,000 in one eligible account and £80 in another. The £80 balance does not generate enough interest to reach the minimum £0.01 payment amount for the day, so no interest is paid on it. Interest amounts less than £0.01 will not be rounded up. Your £100,000 balance is paid as normal at £10.09 per day.
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
We provide monthly aggregations of the interest paid to you, along with an annual statement that can be used for tax reporting, so you do not need to add up the daily payments yourself.
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, or 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
Frequently Asked Questions
When will my interest be paid?
When will my interest be paid?
For share dealing accounts, interest is calculated on your eligible cash balance each day and credited to your account daily. Interest is paid 7 days a week, including weekends and UK bank holidays. You will see a separate entry on your statement for each day on which interest is paid. For Smart Portfolio accounts, interest is calculated daily and paid monthly.
What does qualifying activity within the last 30 days mean?
What does qualifying activity within the last 30 days mean?
It means that at some point in the previous 30 days you held an open position or placed a buy or sell trade in an eligible account, or held an active Smart Portfolio with an invested balance. This is checked on a rolling basis each day.
Does a single trade qualify me for a whole month?
Does a single trade qualify me for a whole month?
A qualifying activity keeps you eligible for the following 30 days rather than for a calendar month. Because the window rolls forward each day, your eligibility is assessed daily.
What if I have no activity for more than 30 days?
What if I have no activity for more than 30 days?
You will not earn interest on the days on which you do not meet the requirement. Interest resumes automatically from the day you next meet it.
I deposited cash on 1 September but didn't make a qualifying investment until 30 September. Will I earn interest for September?
I deposited cash on 1 September but didn't make a qualifying investment until 30 September. Will I earn interest for September?
No. Interest starts accruing from the day you become eligible. In this example, interest starts accruing on 30 September and is paid on 1 October.
Does holding an investment keep me eligible?
Does holding an investment keep me eligible?
Yes. Continuing to hold an eligible open position keeps you eligible for as long as you hold it, without needing to trade again.
What happens if I sell my last investment?
What happens if I sell my last investment?
Selling an investment keeps you eligible for interest for 30 days after the sale. If you don't hold, buy or sell another qualifying investment during that period, you stop being eligible until you next have qualifying activity.
Do transfers or fractional share trades count as qualifying activity?
Do transfers or fractional share trades count as qualifying activity?
Transfers do not count as qualifying activity. Fractional share trades do count.
If I move cash between my eligible accounts, will it still earn interest?
If I move cash between my eligible accounts, will it still earn interest?
Interest is paid on eligible cash held in the account where the cash is held.
Does the interest I earn also earn interest?
Does the interest I earn also earn interest?
Yes. Interest is added to your cash balance and forms part of the balance used for the next day's calculation, subject to the £100,000 cap. This is why a nominal rate of 3.681% produces an AER of 3.75%.
Is there a minimum balance to earn interest?
Is there a minimum balance to earn interest?
There is no minimum cash balance required to be eligible for interest. However, interest payments of less than £0.01 aren't paid out or rounded up. This means very small cash balances may not generate an interest payment.
I have a small balance in a second account. Will it earn interest?
I have a small balance in a second account. Will it earn interest?
Only if it is large enough to generate a payment of at least £0.01 for the day, which is a balance of approximately £99 or more. Balances below that are excluded, and interest continues to be paid as normal on your other eligible balances. For example, if one account holds £100,000 and another holds £80, the £80 does not earn interest.
I have more than £100,000 cash across my accounts. Will it all earn interest?
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, which is a maximum of £10.09 per day. Any cash above this threshold does not earn interest.
How is the £100,000 cap distributed across multiple accounts?
How is the £100,000 cap distributed across multiple accounts?
The cap is applied at client level. Where your total eligible balance exceeds £100,000, the capped amount is distributed proportionally across your accounts based on balance.
Which currencies earn interest?
Which currencies earn interest?
Only GBP balances earn interest. USD, EUR, AUD and any other non-GBP balances do not earn interest.
Does money tied up in open positions 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.
How will I calculate how much interest I have earned in the year?
How will I calculate how much interest I have earned in the year?
You do not need to add up the daily payments yourself. We provide monthly aggregations of the interest paid to you, along with an annual statement that can be used for tax reporting.
I hold both a share dealing account and a Smart Portfolio. How am I paid?
I hold both a share dealing account and a Smart Portfolio. How am I paid?
Interest on your share dealing cash is paid daily. Interest on your Smart Portfolio is calculated daily and paid monthly. The £100,000 cap applies once across all your eligible accounts.
What if I open an account mid-month?
What if I open an account mid-month?
Interest is calculated from the day your eligible account is opened, provided you meet the activity requirement.
What if I close my account?
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.
Will the interest rate change?
Will the interest rate change?
The 3.75% AER rate is variable and may change at any time.
Does a spread betting or CFD trade qualify me for the 3.75% AER cash interest?
Does a spread betting or CFD trade qualify me for the 3.75% AER cash interest?
No. Spread betting and CFD accounts are not eligible for the 3.75% AER cash interest offer, and trades or open positions in these accounts do not count towards the qualifying activity requirement.
To qualify for interest, your qualifying activity must take place in one of our eligible account types: stocks and shares GIA, stocks and shares ISA, stocks and shares SIPP, Smart Portfolio GIA, Smart Portfolio ISA or Smart Portfolio SIPP.
I've never bought or sold an investment. Can I earn interest on my cash?
I've never bought or sold an investment. Can I earn interest on my cash?
Holding cash alone doesn't qualify you for interest. You need to have held, bought or sold an investment in an eligible account within the previous 30 days, or have an active Smart Portfolio.