Uninvested cash and QMMF (qualifying money market funds)

[2boi2]

Not sure if this is the right section to post this in.

I have a Trading212 ISA account and noticed they are offering 5% interest on uninvested cash, of which I currently have quite a bit. However the 5% is not the default rate (which is 2% and zero from 12/2/2024!); you have to 'enable' it. I tried this and it then tells you that, basically, you will be 'moving your cash into a QMMF, do you agree'? I am keeping this money in cash precisely because I worry about a market correction, so alarm bells began ringing for me.

I'd be interested in LF members opinions, specifically:
Has this QMMF thing being going on for a while (Trading 212 only started it 11/1/24)?
How variable is the 5% (seems a suspiciously round figure)?
How safe do you think this is, compared to ordinary uninvested cash?

Here are some web links:
https://helpcentre.trading212.com/hc/en-us/articles/10608948026269-Interest-on-uninvested-cash#:~:text=The%20current%20interest%20rates%20are,GBP%20%2D%205%25
https://www.etoro.com/news-and-analysis/etoro-updates/qmmfs-on-etoro/
https://www.handbook.fca.org.uk/handbook/glossary/G2422.html

[2boi2]

This document helps a bit, seems like FCA authorised firms have been using QMMFs for a while and only recently have had to ask for explicit permission from investors:

https://www.immfa.org/assets/files/publications/IMMFA%20pamplet%20on%20QMMF%20Version%202%20final.docx

I am tempted to infer that my cash will be no less safe than it ever was.