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.
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 4.94% p.a. as at May 2024) | Transact charges on an average portfolio of up to £260k |
|---|---|---|---|
£260,000 | £21,060.00 | £1,040.36 – equivalent to 40.0bps on total portfolio | 26bps |
1. Introduction
2. TOL Recent Enhancements
3. Non-advised Clients Need Advice
4. Removal of Adviser Purchase Related (Initial and Switch) Fees
5. New Sustainability Disclosure Requirements
6. Insights From Australia
7. Transact – BlackRock MPS
8. The Increasing Popularity Of The Investment Bond
9. Transitional Tax-Free Amount Certificates
10. Interest on Cash
11. Transact Events 2024