CMC Invest launches flexible Isa – here’s how it stacks up against rivals as it becomes the latest platform to offer tax-free accounts

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The battle for the best cash buy has been heating up for some time, but it hasn’t been driven by banks or building societies.

App-based companies such as Trading 212, Moneybox, Plum and Chip have come together to offer the best tax-free deals to savers.

Now, another investment platform has joined the ranks to get a piece of the action. CMC Invest has launched a easy access cash Isa* paying 4.85 percent.

CMC said it will launch the cash Isa in response to “significant customer demand”.

The Cash Isa is available to new and existing customers and can be opened with a deposit from £1. It can only be opened by downloading the CMC Invest app.

There are no withdrawal restrictions, meaning customers can access their money as many times as they want without the rate dropping.

Customers can transfer an existing Isa they have with other providers.

CMC Invest’s Cash Isa is also flexible, meaning you can withdraw money from the Isa and replace it without affecting your Isa allowance, as long as you replace it within the same tax year.

Flexibility can be a useful tool in an Isa to ensure you keep as much of your savings as possible tax-free.

Interest is earned daily and will be paid into customers’ account monthly.

Is your money protected with CMC?

Money held in CMC Invest’s Easy Access Cash Isa is protected by the Financial Services Compensation Scheme.

CMC is not a bank but is authorized and regulated by the Financial Conduct Authority to accept Isa deposits.

It relies on NatWest’s FSCS cover and ‘Qualifying Money Market Funds’ to protect customers’ deposits into their Isa up to £85,000 if they go bankrupt.

It’s not a completely new phenomenon for companies to use money market funds, says James Blower, founder of the website Savings Guru.

He said: ‘This is unusual but it is not completely new. Money market funds can be protected by the FSCS, but must meet strict criteria to do so.

‘So, as long as the CMC is, savers shouldn’t have to worry, but they should definitely stay within the limits of the £85,000 Plan.

“For those who prefer a chartered bank, the Monument Banks Isa may be preferred – the 4.76 per cent rate is just 9 basis points lower, but it may well be worth the sacrifice for savers who might be nervous.”

How does it compare to its rivals?

Trading and investment platforms Trading 212, Plum and Moneybox offer easy-to-access cash Isas at competitive rates.

Trading with 212 easy access Isa* It is also a flexible Isa with no withdrawal restrictions. It pays 4.9 percent interest.

This is the best account if you’re looking for a truly easy-to-access Isa that doesn’t reduce your withdrawal rate at a competitive rate. The rate does not include a bonus that does not disappear after 12 months.

The Isa can be opened with a deposit from £1 by downloading the Trading 212 app.

Plum Easy Access Isa* offers the best rates of 5.18 percent and 5.17 percent, respectively, but both have restrictions on how many times you can withdraw your money before the rate drops and contain bonus rates.

Plum’s rate of 5.18 per cent includes a bonus rate of 1.39 per cent for the first 12 months and the underlying rate is a variable rate of 3.79 per cent.

Customers can also make up to three free withdrawals without any impact on their fee. After the fourth withdrawal, the rate drops to 2.5 percent.

Transfers from another Isa are currently not eligible for the bonus rate, so any customer transferring an Isa will only earn 3.79 per cent.

Isa Piggy Bank Money Boxpay 5.17 per cent cash Isa includes a bonus rate of 0.47 per cent for the first 12 months, with a variable underlying rate of 4.7 per cent.

The account can only be opened by downloading the Moneybox app with a minimum deposit of £500.

You can only make three free withdrawals in a 12-month period with this Isa. On a fourth withdrawal, the rate drops to 0.75 percent.

If your Isa balance falls below £500, your rate will also drop to 0.75 per cent.

You can transfer Isas you have with other providers to Moneybox Isas. Interest is calculated daily and paid annually.

This Isa is not a flexible Isa, so any money you withdraw from it cannot be replaced within the same tax year without affecting your £20,000 Isa allowance. You will lose any amount you withdraw from the subsidy.

Who is CMC Invest?

CMC Invest is part of CMC Markets Group, founded in 1989 in London, United Kingdom.

In 2022, CMC Markets Group, which primarily offers spread betting and high-risk CFDs, launched CMC Invest to offer clients trading in UK and US shares, along with ETFs and investment trusts.

It launched a flexible stocks and shares Isa in December 2022.

It has more than 1.5 million global traders and investors as clients. The company is listed on the London Stock Exchange.