Transact client money
Transact’s approach to client money held on our platform is simple and transparent:
1. Actively managed
Our treasury team actively manages client money across multiple banks and uses our scale to negotiate the highest rate of interest we can for your clients.
2. 100% paid to clients
All interest earned on cash is paid to clients and unlike many platforms, we do not seek to profit by retaining interest on client money.
3. Safeguarded
All client money is safeguarded in accordance with the FCA’s Client Asset (CASS) rules, which require it to be held separately from our own cash.
£210m
Benefits include:
Potentially increased FSCS protection by diversifying holdings across multiple banks.
Higher rates of interest on cash.
All interest earned on cash is paid to clients.
Historical cash interest rates
Month | Annual equivalent of monthly rate (gross) |
|---|---|
April 2026 | 3.70% |
March 2026 | 3.69% |
February 2026 | 3.68% |
January 2026 | 3.67% |
December 2025 | 3.55% |
November 2025 | 3.63% |
October 2025 | 3.67% |
September 2025 | 3.69% |
August 2025 | 3.77% |
July 2025 | 3.97% |
June 2025 | 3.96% |
May 2025 | 4.02% |
Barclays Bank plc
Cater Allen Limited
HSBC Bank plc
Lloyds Bank plc
National Westminster Bank plc
Nationwide Building Society – formerly Clydesdale Bank plc
Royal Bank of Scotland plc
Santander Financial Services plc
Term deposits
We also offer access to term deposit accounts, which offer competitive rates of interest from a wide range of providers. More information can be found by going to the information tab on Transact Online and then clicking “Term deposits”.
Managing client money
In deciding how much to hold with each bank, as well as interest rates, we consider a combination of factors, including:
Each bank’s financial strength and suitability
The FCA’s diversification requirements
Clients’ anticipated liquidity requirements
A matrix of board-approved risk appetites
Your clients might want to manage the amount of cash held with Transact so that, if a bank fails, their loss would be protected in full by the Financial Services Compensation Scheme (FSCS).
FSCS compensation is limited to £120,000 per person per banking licence, either directly held by the client or on their behalf through an investment service such as Transact. Therefore, to cover the “worst case scenario” of a bank failing, a client would have to consider the highest percentage of client money held with an individual bank and “gross that up to 100%”.
How to calculate
£120,000/(A/100) = £B
Where:
A is the percentage of client money held with one bank
B is the maximum protected by FSCS cover
Example
If the highest percentage held by Transact with a bank is 30% and that bank fails, the maximum amount of cash protected by FSCS cover is:
£120,000/0.30 = £400,000
Therefore, if the client holds more than £400,000 cash with Transact, there is a risk that some of that cash will not be recoverable from the FSCS.
Other considerations:
The £120,000 maximum protected figure will be reduced by any cash held directly with that bank by the client, or on behalf of the client, through another investment firm.
The percentages held with each bank fluctuate frequently and can change daily. Therefore, the calculation above is an estimation.
More information about FSCS cover is available in Transact’s Client Asset and Protection Guide available through advisers via Transact Online > Information > User guides > Transact documents.
The table below shows the banks we currently use and the average proportion of their respective month-end deposit holdings for March, April and May. It also includes an example of the theoretical maximum protection that could be provided by the FSCS in the event of the banks’ failure.
The example assumes an amount of £600,000 is held in cash with Transact in a GIA, and that no deposits are held elsewhere with the banks.
Bank | Average holding (Mar–May) | Notional client cash held | Amount protected by the FSCS |
|---|---|---|---|
Barclays Bank plc | 16% | £96,000 | £96,000 |
Cater Allen Limited | 2% | £12,000 | £12,000 |
HSBC Bank plc | 19% | £114,000 | £114,000 |
Lloyds Bank plc | 12% | £72,000 | £72,000 |
National Westminster Bank plc | 22% | £132,000 | £120,000 |
Nationwide Building Society – formerly Clydesdale Bank plc | 10% | £60,000 | £60,000 |
Royal Bank of Scotland plc | 17% | £102,000 | £102,000 |
Santander Financial Services plc | 2% | £12,000 | £12,000 |
Total | £600,000 | £588,000 |
The blended rates for each of the last 12 months are available via Transact Online > Information > Cash within Transact. Interest is calculated daily and is paid within ten working days of the first working day of the month. Interest rates change periodically and can be zero or negative.
The content above is based on our understanding of the relevant legislation and regulations at the time of writing. It is for information and general guidance only and does not and is not intended to constitute professional advice.
We accept no responsibility or legal liability to any person who relies on this information.