Brokers Clash Over UK Savings: eToro Launches Cash ISA, but IG Pushes Restrictions

Wait 5 sec.

eToro has expanded its partnership with Moneyfarm tointroduce a Cash ISA for UK customers. The product is designed to offer acompetitive return on cash held within the ISA. It aims to provide a flexiblesaving option alongside eToro’s existing investment accounts.JoinIG, CMC, and Robinhood in London’s leading trading industry event!The launch comes at a time when the role of Cash ISAs in theUK savings landscape is drawing new scrutiny. IGrecently launched its “Save Our Stock Market” campaign, arguing that theshift of savers into tax-advantaged Cash ISAs weakens domestic equity markets.IG’s policy proposals include ending new Cash ISA openings and reducing theallowance to push more savings toward shares. eToro Launches Cash ISA for UKDan Moczulski, eToro’s UK Managing Director, said theproduct offers a “market-leading rate” and may suit customers who prefer tohold cash until “the right opportunity” to invest. He added that the Cash ISAcomplements features such as stock-back rewards and recurring investments.Eligible eToro UK clients will be able to access the CashISA until 31 December 2025. The account offers a 4.67% AER for the first year,combining a 3.87% variable base rate with a fixed 0.8% boost on the firstdeposit or transfer. A minimum deposit of £500 or transfer of £15,000 isrequired.eToro Offers Integrated Savings and InvestmentseToro said the Cash ISA responds to growing demand for“transparent, high-yield cash solutions” that sit next to investment accounts.The ISA is held in Qualifying Money Market Funds and works alongside theplatform’s Stocks & Shares ISA and Managed ISA. Clients can move fundsbetween ISA types within the app.Moneyfarm’s Chief Commercial Officer, Fabio Zampaglione,said the product reflects a shared aim to provide “smart, flexible financialproducts.” He noted that seamless transfers between ISA categories are designedto help customers manage their money in one place.UK Government Introduces Reforms to Boost RetailInvestmentThe UK government recently introduced the “LeedsReforms” to encourage retail participation in financial markets. Themeasures aim to increase investment in higher-return products. The reforms align with IG’s campaign “Save Our StockMarket,” which highlights concerns over reliance on cash savings and encourageshouseholds to shift funds into investments. Government data show over 29million adults hold money in low-interest accounts, while equities haveaveraged around 9% annual returns over the past decade.This article was written by Tareq Sikder at www.financemagnates.com.