Cash Management Services
It is inefficient to hold cash because returns will, for the most part, be less than inflation. It can therefore feel secure, but the reality is that cash loses value (its buying power), daily.
Sometimes, though, it is right to hold cash. If you have need for money within five years, then it makes sense to keep this money in cash. This might be for a house purchase, a big expenditure or even a large tax bill.
In this case it is important to make sure that you are getting the best interest rates available. For large amounts of money, it is as important to make sure that you are protected by the Financial Services Compensation Scheme (FSCS) by not holding more than £85,000 per person in each bank.
We use a couple of cash management services with our clients for this purpose. A cash management service has several benefits: single application, single login, low cost, access to multiple banks in one place and ease of transfer between different accounts. Now that interest rates are higher it is possible to easily manage multiple deposits to maximise interest.
Cash management solutions are available to Altor clients in our Bespoke Service.
Nothing on this website or its links constitutes a personal recommendation; the information contained is designed to be informative but not to be relied upon as individual circumstances could affect the relevance of this guidance.