Cash ISA Interest Calculator Trading 212

Compound Interest Formula:

\[ A = P \times (1 + \frac{r}{n})^{(n \times t)} \]

Principal Amount (P):

Annual Interest Rate (r):

Compounding Frequency (n):

Time (t):

years

Future Value (A):

Interest Earned:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Cash ISA Interest Calculator?

The Cash ISA Interest Calculator helps you estimate the future value of your Trading 212 Cash ISA investment using the compound interest formula. It calculates both the total future value and the interest earned over time.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

\[ A = P \times (1 + \frac{r}{n})^{(n \times t)} \]

Where:

\( A \) — Future value of investment (£)
\( P \) — Principal investment amount (£)
\( r \) — Annual interest rate (decimal)
\( n \) — Compounding frequency per year
\( t \) — Time in years

Explanation: The formula calculates how your investment grows when interest is compounded at regular intervals, earning interest on both principal and accumulated interest.

3. Importance of Compound Interest Calculation

Details: Understanding compound interest helps investors make informed decisions about their Cash ISA investments, plan for financial goals, and maximize returns over time.

4. Using the Calculator

Tips: Enter your principal investment amount in pounds, annual interest rate as a percentage, select compounding frequency, and investment period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a Trading 212 Cash ISA?
A: A Cash ISA (Individual Savings Account) is a tax-free savings account where you can earn interest without paying tax on your returns.

Q2: How often is interest compounded in Trading 212 Cash ISA?
A: Interest compounding frequency may vary. Check Trading 212's current terms for specific compounding periods.

Q3: Are there any limits on Cash ISA contributions?
A: Yes, there is an annual ISA allowance limit set by the UK government. Check current limits before investing.

Q4: Is the interest rate fixed or variable?
A: Interest rates can be either fixed or variable depending on the specific Cash ISA product offered by Trading 212.

Q5: Can I withdraw money from my Cash ISA?
A: Most Cash ISAs allow withdrawals, but terms may vary. Check Trading 212's withdrawal policies and any potential penalties.