Maximise interest and keep your money safeJan 31, 2020
Tony Byrne, managing director of Wealth & Tax Management
by TONY BYRNE Managing Director, Wealth & Tax Management
DOES your company have a significant amount of cash in its bank account? By significant I mean more than £250,000. If so, do you know how much interest you are earning on that bank account?
In my experience, most businesses keep their money in a current account earning 0% interest and continuing to pay bank charges. Which means they are actually paying the bank for the privilege of depositing cash with them rather than vice versa.
Some businesses put the money in a deposit account but even then they are unlikely to receive more than 0.1% interest per annum. Yes, you read that right. 0.1% interest a year. It’s outrageous.
Well, the good news is it doesn’t have to be like that. We help businesses to get far better interest rates on their deposits by using our cash management software which sources the best interest rates from the vast majority of UK banks.
What’s more, we advise you to spread your cash between more than one banking group in order to ensure that you have bank deposit protection of £85,000 per banking group.
Furthermore you choose the length of deposit ranging from instant access to three, six, 12 months or more. You can even limit your choice to the largest and safest banks in the land or open it up to the ones that pay you the highest level of interest.
Once we have gathered all of the information we need from you we go away, research the market and then make recommendations to you in the form of a report.
Our work does not stop there. You may decide you do not want to limit investing your cash into a bank account. You may wish to invest the money elsewhere that will give you a greater potential return. If that is the case we would be happy to advise you on alternative investment options too.
Is this of interest (forgive the pun)? If so, give us a call to find out more. You know it makes sense.
Tony Byrne is a chartered and certified financial planner, a chartered wealth manager and author of Wealth Magic.