Savings Accounts & Cash Management
It is estimated that up to 80% of savings held on deposit are not being actively managed and are therefore not achieving as much as they could. This is just one of the many reasons why we choose to offer a cash management service to our clients.
From as little as £10,000 on deposit, to any amount thereafter, we can show you how to manage your savings to maximise the value you receive!
Most importantly, with this service, your savings never leave your hands or your control. It simply provides the information to allow you to access the best savings accounts available within the UK.
Using our online system makes the management of savings very simple and straightforward. All of the difficulties associated with finding the best rates, such as understanding which savings providers have the Financial Services Compensation Scheme (FSCS) protection and researching the application methods, are removed.
Try our savings calculator for free!
It’s dead easy and dead quick! Simply follow the four simple steps to get your free report.
Our Savings Calculator is not designed for use on a mobile device
This is our fault not theirs!
The only way to change this is for all savers to take a more ‘pro-active’ stance on the management of their savings.
The basic definition of a deposit account is a savings account that offers 100% return of capital upon demand.
The accounts that are variations on this theme are known as:
- Current Accounts
- Notice Accounts
- Fixed Term Accounts
- Cash ISAs
These accounts are also available to many forms of depositors, such as:
- Clubs and Associations etc
The standard rate of interest offered on savings accounts is influenced by a number of factors:
- The Bank of England Base Rate.
- The amount available for deposit.
- The amount of time the depositor is willing to leave the deposit with the account provider.
- This factor applies to notice accounts and fixed term accounts.
- If the money is left in an instant access variable rate savings account, for a long period of time, the rate of interest will be the lowest possible return.
The lowest rate of interest is typically paid on instant access accounts, where the account provider has no certainty over the length of time they will have the money on deposit.
Do not be Over-Loyal
No savings provider can offer the best savings account at all times! In reality, providers only offer savings accounts with good rates of interest when they are in need of capital. They will then maintain that rate of interest, until the offer expires. At expiry, the rate of interest is then reduced as quickly as possible. Staying with any single provider therefore costs the saver money!
Protect Your Capital
The Financial Services Compensation Scheme is a protection scheme of last resort. It provides a level of security on the first £75,000 saved with each individually protected savings provider. This means that having an account in joint names offers £150,000 of FSCS protection, or if one person has £150,000 saved with 2 different account providers (each with their own licence), the same applies.
Terms and Conditions apply! It is therefore important to obtain professional advice and to consider this when choosing your savings account provider(s).
Make a Financial Decision Every Year
Most Instant Access and Notice Accounts maintain the introductory rate of interest for 12 months (remember that these are still variable rate accounts). Beyond this, fixed term accounts offer fixed rates of interest for longer periods of time and should therefore be considered for larger amounts held on deposit.
Have a Plan
Having a ‘plan’ provides the structure to choose the most suitable accounts and to manage them most effectively.
It is important to understand your immediate 12 month financial requirements, first and foremost, and to place this amount of money in the best instant access account. This account could then be linked to your current account to satisfy your instant access requirements.
Any additional savings could be spread over longer term accounts to achieve better rates of interest.
Review the Whole of Market
You can only ever be sure of identifying the best rates of interest if you review the offering of every suitable account provider.
With over 100 account providers available, offering the protection of the UK FSCS, there are many to review. Some of these are overseas national banks, which some people may deem unsuitable. These include banks such as; Bank of Cyprus, National Bank of Greece, First National Bank (Nigeria), etc.
We have defined the most suitable savings account market, for our clients, to include any savings provider with a commercial or retail trading presence within the UK. We do not consider accounts offered by overseas national banks to fall into our suitability category. We will therefore review all of these providers every time you require a savings solution, to ensure we identify the best accounts for you within our selection of circa 75 providers!
You will only maximise your savings returns by being pro-active. Take the control and initiative to identify and implement the best savings accounts that are available. However, we understand how difficult this is, which is why we are now here to help.
- Work out the amount you need to be accessible over the next 12 months. This also establishes the balance of the portfolio going forward. Unless anything changes, this is the amount that needs made available every 12 months going forward for up to 5 years.
- Determine any particular cash requirements you have at any time over the next 5 years. Specify the amount and the year in which it is required. This amount is then provided for within the portfolio.
- Any remaining amount should be split into amounts that are ‘not less than’ the initial 12 month requirement. These amounts are then identified for progressive 1, 2, 3, 4 and 5 year fixed rate accounts.e.g. If there are only 2 amounts, you engage in a 2 year portfolio.If there are 4 amounts, you engage in a 4 year portfolio, and so on.
The advantages of building a portfolio this way are:
- You will always have access to capital. The amount of capital you have access to is relevant to your lifestyle and requirements, rather than simply ‘all of your money just in case’.
- You only have to manage a ‘portion’ of your portfolio each year.
- You will have a plan and a structure to managing your money.
- You will have greater control of your savings and will be using your money to your advantage rather than that of the bank or building societies.
- You will have access to maturing accounts every 12 months.
- On most occasions you will get higher rates of interest on fixed term accounts than on short term instant access accounts.
- You will be maximising the value of your savings and the majority of savers will have the opportunity to beat inflation (CPI) after tax has been deducted.
- Any amount of money remaining after building this portfolio should be considered for either:a. Increasing the deposit amounts in each fixed term account for those not wanting any exposure to risk on their capital.b. Longer term investment management for those people now happy to accept a degree of risk to capital for the option of longer term investment value. Advice must be sought from a professional regulated financial planner. To find out more about investments call or book an appointment with one of our qualified advisers today.
You can try our calculator for free to obtain a personal savings report which shows an automated portfolio built for you over a time frame you select.
Click here to see an example of a report produced from our calculator. This example is based on a client with £100,000 who would like to have a savings portfolio produced spanning a period of four years. The automated system splits the portfolio equally over the four year period as follows:
Instant access: £10,000
Notice account: £10,000
1 Year: £20,000
2 Year: £20,000
3 Year: £20,000
4 Year: £20,000
Once you have keyed the information into the calculator it will compare how much interest you have made in your existing savings accounts with the amount you could have made using our cash management service and selecting a portfolio which is instant access, requires notice or has elements fixed over 1, 2, 3, 4 or 5 years.
It is possible to select what proportion you would like in each fixed period with our bespoke service.
Bespoke personal savings report
Our bespoke service provides you with a range of benefits outlined below.
What can our system do?
- Help you to structure the best savings portfolio for your requirements.
- Help you identify the best and most suitable savings accounts.
- *We only use savings providers situated within the UK and registered under the Financial Services Compensation Scheme.
- Provide automatic reminders on account maturities.
- Provide application methods & forms (where available) for each account selected.
- Maximise the level of FSCS protection that is available.
- Provide annual reviews on your savings.
- Provide annual reports detailing the performance of your savings and the best structure for your savings for the following 12 months.
- Facilitate the management of the accounts.
- Provide you with a secure online management system to help you keep track of your money.
What does the service cost?
We offer a telephone service whereby we shall discuss your preferences such as investment timescales and get you to the point of completing your applications. We then give you access to go in and print off/complete your applications for each of the banks or building societies selected.
This service carries a fee of £150
We can print and post your applications to you to complete and send off.
This service carries a fee of £15 per application
You can subscribe to full use of the system. This allows you to use the system whenever you like to check your existing account maturity dates, search for new rates and reinvest any matured accounts in addition to the rest of the services outlined above.
This service costs £25 per month
This efficient and effective system makes the task of looking after cash deposits more straightforward for Trustees (looking after Trust money), Power of Attorneys (looking after personal money on behalf of an incapacitated individual) and Court Deputies (looking after personal injury payments).
Money managed by these individuals must be managed by professional standards, not personal.
The Trustee Act 2000 specifies this point exactly, as do regulatory bodies, such as the FCA (Financial Conduct Authority) and the SRA (Solicitors Regulatory Authority).
We can help these professionals establish deposit portfolios that can beat the rate of CPI (Consumer Price Index).
If you are the beneficiary of a Trust with £100,000 on deposit, would you rather be earning £350 per annum or £1,650 per annum in interest?
If you are a Trustee, do you want to have to compensate for this ‘GUARANTEED’ loss when you could easily have prevented it?
Similarly, if you are a Power of Attorney or a Court Deputy, do you want to be held accountable for the same level of liability?
Use our analysis to identify the best solutions for your ‘wards’ and for your business.
Full details of the scheme can be found at www.fscs.org.uk
For the purposes of effective cash management, it concerns the Depositor Protection levels.
The current level of protection offered to depositors, in the event of their savings account provider ceasing to trade, is up to a maximum of the first £75,000 held on deposit by an individual. Joint accounts are assessed as being owned by 2 individuals and therefore 2 x £75,000 applies per person.
What depositors should ‘avoid’ in order to obtain the maximum level of FSCS protection:
- Depositing more than £75,000 with any individually licensed savings account provideri. Be aware that some providers are part of a Group and the £75,000 limit could be shared over all deposits held within the Group.ii. Other providers have individual licenses and are therefore fully protected up to £75,000.iii. Some providers are part of a Group yet still retain individual licenses and therefore offer £75,000 in full, whereas other providers within the Group could still be sharing another license.
- Depositors should avoid having their savings with the same provider with whom they have a loan of any kind, e.g. a mortgage, a personal loan, corporate lending etc.
Note that corporate lending does not affect personal savings.