Hundreds of thousands of savers have received an unwelcome notification after a major online platform slashed its interest rates in the wake of the Bank of England's latest decision.
Rate Cuts Follow Central Bank Move
On Thursday, 19 December 2025, the Bank of England announced a cut to the base interest rate, lowering it to 3.75 per cent. This marked the sixth reduction since the general election.
The move prompted an immediate response from the online bank and investment platform, Trading 212. Customers with accounts on the platform were informed that a similar cut would be applied to their products.
What Rates Are Changing?
In a direct message to its user base, Trading 212 outlined the forthcoming changes to its GBP interest rates. The adjustments are as follows:
Effective from 19 December 2025:
- Trading 212 Cash ISA: Reduced from 3.85% to 3.6% AER (variable).
Effective from 25 December 2025:
- Trading 212 Stocks and Shares ISA: Down from 4.05% to 3.8% AER.
- Trading 212 Invest: Down from 4.05% to 3.8% AER.
- Trading 212 CFD: Down from 4.05% to 3.8% AER.
The platform stated that its “rates are reviewed regularly” and it remains “committed to offering competitive rates.”
Economic Outlook and Political Response
The rate cut comes amid a concerning economic forecast. The Bank of England now expects zero growth in the final quarter of the financial year, a significant downgrade from a previous projection of 0.2% growth.
Governor Andrew Bailey warned of the risk of a “sharper downturn,” but explained the cut by saying, “We’ve passed the recent peak in inflation and it has continued to fall... We still think rates are on a gradual path downward.”
Chancellor Rachel Reeves responded to the announcement, calling it “good news for families with mortgages and businesses with loans.” She pointed to measures in the Autumn Budget, including frozen rail fares and prescription charges, plus a planned £150 cut to the average energy bill next year, as further help for households.
For savers, however, especially those relying on Cash ISA interest, the immediate impact is a reduction in their potential returns, highlighting the direct link between central bank policy and personal finance.
