A top Cash ISA currently being offered by Trading212 faces a cut to its rate from today.
A market leading Cash ISA has cut rates from Friday (Image: Getty)
Online bank and investment platform Trading212 has issued an unwelcome message to customers today warning of a cut to interest rates following a Bank of England’s announcement on Thursday.
It was good news for people with mortgages but bad news for those with savings on Thursday, when the Bank of England announced another cut to interest rates, by 0.25 percentage points, to 3.75%.
The Bank’s Monetary Policy Committee (MPC) voted to reduce rates from 4% to 3.75%.
Governor Andrew Bailey said the UK has “passed the recent peak in inflation and it has continued to fall”, allowing the MPC to cut borrowing costs for the fourth time this year.
Following the cut, Trading212, which is often touted by money expert Martin Lewis as a market leading Cash ISA account, has announced it’s following suit with a cut to one of its popular savings products from today and more from Christmas Day.
It said in an unwelcome message to customers: “Following the Bank of England (BoE) recent interest rate cut, Trading 212’s GBP (Pound Sterling) interest rate changes as follows:
As of 19.12.2025:
- Trading 212 Cash ISA: From 3.85% to 3.6% AER (variable)
As of 25.12.2025:
- Trading 212 Stocks and Shares ISA: From 4.05% to 3.8% AER (variable)
- Trading 212 Invest: From 4.05% to 3.8% AER (variable)
- Trading 212 CFD: From 4.05% to 3.8% AER (variable)
“Our rates are reviewed regularly and we remain committed to offering competitive rates that help you build wealth every day.”
The Cash ISA from Trading212 remains a market leading pick on Martin Lewis’ MSE website, though, for new customers, offering 4.27%, made up of a 3.6% rate plus a 0.67% bonus for one year for new customers.
Following the base rate cut announcement, Martin Lewis warned that many easy access savings accounts would see rates drop.
He said: “Variable rate savings (which is mainly easy access accounts) will likely drop within two to four weeks by 0.25%.
“Fix rate savings have already factored in some of this cut. Though they may shave down further. If you want to fix your savings, safest bet is do it today.”
The latest reduction takes the bank’s base interest rate to its lowest level since early 2023.
The nine-person committee voted five to four for a cut, with Mr Bailey among those preferring to lower rates at the Bank’s final meeting of the year.
The decision comes after official figures showed Consumer Prices Index (CPI) inflation fell sharply to 3.2% in November, from 3.6% in October.
Minutes of the MPC’s meeting read: “This was above the 2% target but, following the Budget announcements on administered prices and indirect taxes, headline inflation was now expected to fall back more quickly in April, to closer to 2%.”
It means CPI will near the Bank’s target level considerably earlier than the early 2027 timeframe that it had forecast in November.
Measures in the autumn Budget, delivered by Chancellor Rachel Reeves last month, are likely to lower CPI inflation by around 0.5 percentage points, according to the MPC.
This includes one-off support for household energy bills and freezing fuel duty which will kick in from April next year.
