Trading 212 Card Review: Integrating Investments with Everyday Spending

Trading 212 has expanded its services by introducing the Trading 212 Card—a Mastercard-backed debit card designed to integrate investment activities with everyday spending. This review delves into the card's features, benefits, and potential drawbacks to assist you in determining its suitability for your financial needs.

Key Features and Benefits

• Cashback Rewards: The Trading 212 Card offers 1.5% cashback on all purchases until January 1, 2025, with a monthly cap of £20. Post this period, the cashback rate reverts to 0.5%, maintaining the same cap.
• Competitive Currency Exchange: For international transactions, the card applies a 0.15% foreign exchange (FX) fee, with no additional markups during weekends. This rate is competitive compared to other multi-currency cards.
• Interest on Uninvested Cash: Uninvested cash in your Trading 212 account earns a 5% Annual Equivalent Rate (AER), surpassing many traditional savings accounts. However, this interest is generated through Qualifying Money Market Funds (QMMFs), which are not covered by the Financial Services Compensation Scheme (FSCS), introducing a minimal risk to the capital.
• Multi-Currency Support: The card supports 13 currencies, facilitating seamless international spending and reducing the need for separate currency accounts.
• ATM Withdrawals: Users can withdraw up to £400 per month from ATMs without incurring additional fees. Withdrawals beyond this limit are subject to a 1% fee.
• Card Options: Customers can choose between a free virtual card for online transactions or a physical card for a one-time fee of £4.95.

How the Trading 212 Card Works

The card is linked to the uninvested cash in your Trading 212 Invest account. Purchases and withdrawals are deducted directly from this balance, ensuring that your invested funds remain unaffected. The card operates like a standard debit card, featuring contactless payments and PIN protection. Integration with digital wallets like Google Pay and Apple Pay is anticipated in future updates.

Pros

• Integrated Financial Management: Combines investment and spending accounts, simplifying financial oversight.
• Competitive Cashback and Interest Rates: Offers attractive cashback on purchases and a high-interest rate on uninvested cash.
• Low FX Fees: Provides favorable foreign exchange rates, beneficial for international transactions.

Cons

• Limited FSCS Protection: Funds earning interest through QMMFs are not covered by FSCS, introducing a slight risk to the capital.
• Physical Card Fee: A one-time fee is required for obtaining a physical card.
• Spending Limits: Monthly cashback is capped at £20, and ATM withdrawals are limited to £400 per month without fees.

Conclusion

The Trading 212 Card presents a compelling option for individuals seeking to integrate their investment and daily spending activities. Its competitive cashback, favorable FX fees, and high-interest rates on uninvested cash make it an attractive choice. However, potential users should consider the limited FSCS protection on interest-earning funds and assess whether the card aligns with their financial objectives and risk tolerance.