Earn 7.5% curiosity on uninvested money with IG: How to get the boosted price

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The investing platform IG is paying a boosted 7.5 per cent interest on uninvested cash, but with the deal closing on 16 January you must be quick if you want to sign up.

The boosted 7.5 per cent rate at IG* lasts from the date you make your first trade until 31 March. 

This means that it can’t be compared directly against savings accounts, where rates are based across an entire year – but it does give an appealing short–term boost to cash.

Investors who squirrel away £10,000 on 16 January and meet all the conditions of the deal would earn just over £150 by the time the boost ends. Their rate then drops to 3.75 per cent.

Savings rates have fallen following the drop in the base rate from 4 to 3.75 per cent in December, so this deal makes your money work harder for you.

Earlier this month, IG axed its quarterly custody fee to make its platform free of account fees. Previously, it charged £24 a quarter if you placed less than three trades over the period – essentially requiring you to place at least one trade a month.

> Find out how to open an account with IG and get boosted interest*

IG is an online trading platform that’s been offering decent deals of late

What do you need to do to get 7.5% interest on cash?

This is Money says: While there are a few hoops you need to jump through to get the deal, making the effort could reap you £152 by April.

By comparison, the trading platform XTB pays a top regular rate of 4 per cent on uninvested cash. This nets you just £81 over the same period.

You won’t get the IG deal if you’ve previously traded on one of IG’s eligible accounts – its stocks and shares Isa, self–invested pension or general investment account.

IG pays the boost on balances of up to £10,000. Above this, the regular 3.75 per cent interest rate applies. 

How to get the deal: You need to open one of these accounts and place a first trade by 11.59pm on 16 January.

IG offers a huge range of investments, with over 12,000 global shares and 3,000 exchange–traded funds available, so you should be able to find a suitable investment. Read more about investing for beginners if you’re just starting out.

You’ll earn 7.5 per cent interest each month until the boosted period closes on 31 March provided you have at least one of these in the month:

• An open share position: probably the easiest way to keep the deal, because you could just hold your first trade for the duration of the boost.
• An active IG smart portfolio: IG’s managed ready–made funds (be sure to check how much it charges for managing the investments).
• A buy or sell trade on any of IG’s eligible accounts.  

IG calculates interest daily and pays your earnings the following month.

> Get boosted interest by opening an IG account and making your trade*

What to watch out for: We like that IG has slashed its fees, so if you don’t want to trade each month the platform is now a viable option. 

This means it competes more effectively with Trading 212*. Read our Trading 212 review here.

IG is also running a cashback deal that pays 1 per cent back on transfers, up to £2,000. However, you can’t take up both deals, so you need to choose which one works out best for you. 

Keep in mind that IG also offers risky CFD (contracts for difference) and spread bet trading on its platform. These are complex financial instruments that use leverage to magnify both returns and losses. They should be avoided.

IG says that 67 per cent of investors lose money when trading these types of investments on its platform, so it’s a good idea to give them a wide berth them unless you’re a very experienced trader.