IG Group (LON: IGG) is rolling out an aggressive new strategy to attract deposits, offering UK customers an interest rate of up to 8.5% AER (variable) on cash holdings—double the Bank of England’s current base rate of 4.25%.
A Strategic Move Amid Falling Rates
The London-based brokerage introduced this promotion just one day after the Bank of England cut rates by 25 basis points to 4.25%. While the central bank signaled that further cuts aren’t guaranteed, IG Group is seizing the moment to lure new clients with a limited-time high-yield offer.
Key Details of the Offer
- Exclusive to new customers opening accounts under an ISA, SIPP, or General Investment Account (GIA).
- Promotional period: Must sign up by May 31, 2025, with the 8.5% rate valid until August 31, 2025.
- Post-promotion: Rate reverts to IG’s standard variable rate, currently matching the BoE’s 4.25%.
Michael Healy, UK Managing Director at IG, stated:
“While others cut, we’re doubling down. At a time when rates are falling and investors are cautious, we’re offering new customers a standout return on their cash.”
Brokers Battle for Deposits in a High-Rate Environment
With central banks hiking rates in recent years, brokers have increasingly passed on interest to clients to remain competitive. Firms like XTB, BidX Markets, Interactive Brokers, and Trading 212 now offer similar cash yield programs. Meanwhile, Robinhood plans to launch 4% APY savings accounts later this year.
Why This Matters for Investors
As market uncertainty lingers, many investors are parking cash rather than deploying capital. IG’s 8.5% offer—far above traditional savings rates—could pull sidelined funds into its platform.
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