Interest on Cash
The annualised rate of interest earned on Transact pooled cash for July 2024 was 4.95% (paid monthly) and this has been credited to client portfolios. On average clients now hold 7.75% of their portfolio values in cash.
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). To help you and your clients when considering your FSCS exposures, details of the banks we use and the percentages held with each bank are updated monthly and published here.
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 (7.75% of total portfolio) | Annual interest on cash (payable monthly but equivalent to 4.95% p.a. as at July 2024) | Transact charges on an average portfolio of up to £260k |
|---|---|---|---|
£260,000 | £20,150.00 | £997.43 – equivalent to 38.4bps on total portfolio | 26bps |
1. Introduction
2. TOL Recent Enhancements
3. Integrations – It Wasn’t A Quiet Summer!
4. Transact Transfer Specialists
5. Fraud Risks to Be Aware Of
6. Transact And Letters of Authority
7. Transact – BlackRock MPS
8. Utilising Trusts to Give Wealth Away But Still Retain Access
9. Interest on Cash Deposits
10. Transact Events 2024