Interest on Cash
The annualised rate of interest earned on Transact pooled cash for May 2024 was 4.94% (paid monthly) and this has been credited to client portfolios. On average clients now hold 8.1% in cash, up from 6.7%.
We use seven UK licensed banks: Barclays, Cater Allen, Clydesdale, HSBC, Lloyds, NatWest and Santander and our treasury function expertly manages the cash across different notice periods (up to 95 days – the maximum allowed under the FCA’s client money rules).
It’s possible for the interest earned on a client’s cash holding to cover Transact’s annual charges, for example:
| Transact Portfolio Value | Cash held (8.10% of total portfolio) | Annual interest on cash (payable monthly but equivalent to 4.98% p.a. as at June 2024) | Transact charges on an average portfolio of up to £260k |
|---|---|---|---|
£260,000 | £21,060.00 | £1,048.78 – equivalent to 40.38bps on total portfolio | 26bps |
1. Introduction
2. TOL Recent Enhancements
3. Transact API Integrations
4. Administration of Transfer Deposits From Third-Party Providers
5. Adviser Trends from 2024 Investment Trends Study.
6. Transact-BlackRock MPS Goes Live on FE Analytics
7. Pension Scheme Death Benefits Post 6 April 2024
8. Succession Planning
9. Interest on Cash Deposits
10. Transact Events 2024