Client money at Transact
When you hold cash in your Transact portfolio, you benefit from the experience of our treasury team which works hard to achieve the best rate of interest possible on client money.
Unlike many of our competitors, we repay all interest earned on client money to clients and in 2025 we paid £210 million to clients in cash interest.
£210m
How Transact holds client corporate cash
Client cash on the Transact platform is held across eight major banks. The rate of interest we pay varies in line with the rates available from the banks we use.
This enables us to improve the rate of interest earned on cash, which we return to you, our client.
The annualised rate of interest earned on Transact cash, all of which we pass on to clients, for April 2026 was 3.70% (paid monthly) and this has been credited to client portfolios.
Client corporate cash is safeguarded in accordance with the Financial Conduct Authority’s (FCA) client asset rules and held separately from Transact's company cash. This is designed to protect client assets.
The Financial Services Compensation Scheme (FSCS)
If a bank goes out of business and it is unable to return Transact clients’ money, the Financial Services Compensation Scheme (FSCS) would pay compensation up to a limit of £120,000 per client per banking licence. This amount includes any money held in a client's name, for example in a savings account, or held with another platform.
It is possible to manage the amount of cash held with Transact so that if a bank fails, its loss would be protected in full by the compensation scheme.
Banks used, client cash held and amount protected by the FSCS
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 | March–May month-end average % | 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 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. Further information on managing cash in respect of FSCS protection is available from your financial adviser or in our client money user guide, available on Transact Online.
We accept no responsibility or legal liability to any person who relies on this information.
For more information visit Financial Services Compensation Scheme.