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ISA - yield on cash


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I've got an IG ISA with quite a bit of uninvested cash.

As there's no yield on the cash in the account, I'd like to invest in some cash-like instrument like a very short gilt, or a money market fund, to generate a bit of income from the cash. Probably want to keep it in sterling, but USD or EUR instruments would be acceptable.

I can't see any good options for this in the user interface. It looks like individual gilts aren't available, and nor are any of the money market investment funds I'm used to.
 

Would be grateful for any suggestions please - especially if there's a way to deal individual gilts that I'm missing.

 

TYIA.

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10 hours ago, johnnyfartpants said:

I've got an IG ISA with quite a bit of uninvested cash.

As there's no yield on the cash in the account, I'd like to invest in some cash-like instrument like a very short gilt, or a money market fund, to generate a bit of income from the cash. Probably want to keep it in sterling, but USD or EUR instruments would be acceptable.

I can't see any good options for this in the user interface. It looks like individual gilts aren't available, and nor are any of the money market investment funds I'm used to.
 

Would be grateful for any suggestions please - especially if there's a way to deal individual gilts that I'm missing.

 

TYIA.

Hi @johnnyfartpants

Please note that we have a few guilts short ETFs on the platform: WisdomTree Gilts 10Y 3x Daily Short, iShares UK Gilts 0-5yr UCITS ETF.

 

All the best - MongiIG

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Hi,

 

Thank you for the reply.

 

Unfortunately both the gilt ETFs you suggest are unsuitable. One of them is short long-duration gilts - if anything the opposite of what I asked for. The other has far too much duration and is unsuitable for someone looking for a safe cash-like return; when interest rates rise, its investors lose capital.

The Treasury Gilt 0.75% expiring this July would be perfect for me here, but unless I'm missing something you don't offer dealing in them:

https://www.hl.co.uk/shares/shares-search-results/t/treasury-0.75-22072023-gilt

I'd hate to transfer back to the steam-driven shambles that is HL but I can't go on earning zero interest on a £50k cash balance!

 

Thanks

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  • 3 weeks later...

I'm the same as you @johnnyfartpants, now the interest rates have increased the lack of interest on deposits or access to individual gilts/money markets has had me looking at HL. 

I'm still with IG at the moment and the most suitable ETF's I found were ERNS (1/2 year dividends) & QUID (monthly dividends). While the spreads are tight it is still galling to pay trading fees and nearly a weeks interest on buying and selling an ETF when I really only want interest on cash.

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  • 4 weeks later...
  • 3 weeks later...
On 23/02/2023 at 09:34, johnnyfartpants said:

Hi,

 

Thank you for the reply.

 

Unfortunately both the gilt ETFs you suggest are unsuitable. One of them is short long-duration gilts - if anything the opposite of what I asked for. The other has far too much duration and is unsuitable for someone looking for a safe cash-like return; when interest rates rise, its investors lose capital.

The Treasury Gilt 0.75% expiring this July would be perfect for me here, but unless I'm missing something you don't offer dealing in them:

https://www.hl.co.uk/shares/shares-search-results/t/treasury-0.75-22072023-gilt

I'd hate to transfer back to the steam-driven shambles that is HL but I can't go on earning zero interest on a £50k cash balance!

 

Thanks

Same issue - IG doesn't pay any interest on uninvested cash especially in ISA.
 

Only InteractiveBrokers ( ibkr) seems to be the only UK /US brokerage that pays near market interest rates and in ISA as well.

 

https://www.interactivebrokers.co.uk/en/accounts/fees/pricing-interest-rates.php

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