FSCS guide

The Year of the Pig-gy Bank

It seems appropriate it’s the year of the Pig in the Chinese calendar. Brexit and the consequent uncertainty in the market has led a number of clients to focus their interests on cash and place investments in their piggy banks, versus other investment classes. Rathbones has recently published statistics that show that a quarter of high net worth investors currently hold more that 50% of their wealth in cash.

As with any investment portfolio it’s important to diversify to mitigate risk factors. This is especially applicable for what is considered a conservative investment such as cash. Luckily, the FSCS eligibility of £85,000 is something that cash investors can take advantage of.

Our service can manage cash savings portfolios to ensure that the cash is working harder and falls within the FSCS limit per banking license. Whether it is individual, corporate or charity savings, we have a wide range of applicable products from our banking partners that can accommodate cash savings within tranches of £85,000 to benefit from the FSCS eligibility.

Take for example, a portfolio of £500,000 in cash. By using 6 bank accounts to ensure that the whole deposit is eligible for FSCS protection, and spreading the deposits across a variety of terms, an individual can benefit from £10,481 in interest alone.

What is important to remember when using cash management platforms is the benefit of the management of the cash after it has been placed into the savings account. Looking after and moving each tranche of cash to other accounts, according to your requirements is a time-consuming endeavour, one that we can take care of for you.

Make your Piggy bank watertight this year and use the protection that the FSCS gives you for your cash. Contact us to find out how we can help.






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