5 smart reasons to start saving for your future today

Saving for your future is essential, and now’s the perfect time to start. With Trading 212 offering an impressive 5.12% interest on ISA deposits for a limited time, you can grow your money, beat inflation, and secure your financial goals, all tax-free! Here’s how...

Gordon Scott
Thursday 23 January 2025 09:49 EST
(Getty Images)

In these turbulent economic times, efficient saving can give you a cushion against all manner of unexpected (and increasingly expensive) eventualities. It also means that you are putting your money to work, earning interest as you go.

One of the most popular ways to save is by subscribing to a cash ISA, which is just like a savings account, but with the added benefit of never having to pay tax on the interest you earn. A cash ISA allows you to save up to £20,000 a year, and with Trading 212 offering an impressive 5.12% interest rate on ISA deposits for a limited time, now is the time to start…

Beat inflation by putting your money to work

Depositing money into a cash ISA like Trading 212’s means your savings get more valuable over time
Depositing money into a cash ISA like Trading 212’s means your savings get more valuable over time (Getty Images)

Typical current accounts pay very low rates of interest – often 1.5% or less[1] – and those that offer more may cap the amount you can save, or limit the time that you’re able to benefit from the higher rates. With inflation currently at 2.5%, any savings paying less than that are diminishing in value year-on-year, which makes looking for a better rate even more urgent. The beauty of a cash ISA like Trading 212’s is that it’s currently outpacing inflation, ensuring that your savings get more valuable over time.

Financial Security for peace of mind

Cash ISAs like Trading 212’s offering are covered by the Financial Services Compensation Scheme which means that if they go out of business the FSCS will step in to pay compensation. Independent and backed by the government, the FSCS protects up to £85,000 per person, per institution, and their service is free to use.

The simplest way to save

Unbeatable interest from Trading 212’s Cash ISA

For new customers of Trading 212 only, signing up for their Cash ISA now offers an additional 0.20% promotional rate on top of their standard variable interest rate for the first 12 months.

This means you can deposit up to £20,000 a year and earn 5.12% completely tax-free. It’s super-flexible so you can withdraw your cash at any time and it’s totally free – no account fees are charged.

Independent readers can sign up here to make the most of this special promo rate and start their saving journey today

Be prepared for life’s unexpected costs

Whether you’re in a steady job or you’re self-employed and your income can fluctuate wildly from one month to the next, it’s wise to have enough savings to cover unexpected costs. In December 2024, 22% of adults in the UK reported that their household would struggle to cover an unexpected cost of £850, illustrating why it’s important to have a pot of money to cover unpredictable eventualities. Among the most common unexpected costs are car maintenance, new boilers, and funerals.

Reach major life goals sooner

Whether you’re wedding planning a wedding or hoping to buy a house, having a healthy pot of money enables you to move faster and think bigger
Whether you’re wedding planning a wedding or hoping to buy a house, having a healthy pot of money enables you to move faster and think bigger (Getty Images)

One of the great advantages of putting aside savings is that it gives you greater control over the big moments in life. Whether you’re planning a wedding, hoping to buy a house, or retraining so you can embark on a new career, having a pot of money enables you to move faster and think bigger. Many people also use ISA savings to complement their pension pot so if you’re looking at shaving some years off your retirement date, an ISA is an excellent way to grow your savings.

Enjoy tax-free growth with a cash ISA

One of the best things about cash ISAs is that you don’t pay a penny of tax on your earnings. So if you manage to save £20,000 over the year you could earn up to £1,020 interest, which would be completely tax-free, unlike the interest on a regular saving account.

Take control of your financial future today. Open a Trading 212 Cash ISA and make the most of their special 5.12% interest offer for a limited time only. Don’t wait, start saving smarter now! Promo rate for new clients including bonus of 0.2% for the first 12 months. See the Promo rate terms here

[1] https://wise.com/gb/blog/current-accounts-with-best-interest-rates

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