IG Group Launches Exclusive High-Interest Deal On Uninvested Cash

London-based online trading giant, IG Group, has introduced a new offer giving UK clients up to 8.5 per cent AER variable interest on uninvested cash. The firm revealed that the offer applies only to new customers opening accounts through its ISA, SIPP, or General Investment Account schemes.

According to IG Group, the new rate is double the Bank of England’s current base rate, which recently dropped to 4.25 per cent following a quarter-point cut. The central bank clarified that the adjustment does not signal a guaranteed path to further reductions.

IG Group Highlights Competitive Offer Amid Shifting Interest Rate Landscape

IG Group disclosed that the promotional rate remains available to customers who register before the end of May. The 8.5 per cent rate will last until late August 2025, after which customers will earn a variable interest rate aligned with the Bank of England’s base rate.

The broker attributed growing demand for such offers to earlier central bank rate hikes. It observed that financial institutions began offering interest on customer deposits only after developed markets saw a sharp increase in rates.

Michael Healy, Managing Director for IG UK, emphasized the offer’s goal of supporting investors seeking safety during market uncertainty. He referred to the rate as a standout return, noting the firm chose to deliver strong value while many competitors reduced rates.

Healy suggested that the interest rate could serve as a temporary safe haven for investors awaiting clearer market direction. He further described the return as significantly higher than alternatives currently available in the financial sector.

IG Group Outlines Market Trends And Reinforces Regulatory Strength

IG Group said its new offer is similar to what other companies have done. It mentioned that brokers like XTB and BidX Markets started offering similar deals last year. The company also named others such as Interactive Brokers, Webull, Trading 212, and Freetrade, who give interest on money that’s not being used.

The company explained that many brokers used to keep all the interest from customers’ money. But because interest rates went up, more of them are now sharing part of it with their users. IG Group said this shows a general change in how brokers handle leftover cash.

According to IG Group, some new companies are coming up with similar ideas. For example, Robinhood is planning to launch checking and savings accounts that give 4% interest. Another company, NAGA, is already giving 2.77% interest on money in euros that isn’t invested.

IG Group said it is closely watched by the Financial Conduct Authority, which helps make sure it follows the rules. It also reminded people that it is listed on the London Stock Exchange and is part of the FTSE 250 Index.

The company shared that it started a long time ago with help from a few investors. IG Group was founded by Stuart Wheeler and first offered spread betting on gold, so people could trade without owning real gold. Later, it added betting on sports and trading in foreign currencies.