How to Get the Best Cash Accounts
Q. I am a 64 year old GP and am now in retirement. I have all my financial affairs sorted out and have a spread of investments together with a good NHS Pension and my State Pension as well as my wife’s to come soon.
Part of our wealth is held in cash for now and tomorrow spending (we love cruises), as well as helping our children and grandchildren.
We appreciate the interest rates are not over generous, but these funds are safe and to hand.
My gripe is that we have to keep changing accounts to get the best rates whilst keeping an eye on the £85k compensation level. If you don’t, the banks have a habit of reducing the rates.
I really find this annoying (!) and am constantly having to open new accounts and close old ones, and yet still feel I am missing out on some deals.
Is there any way to minimise the effort and get the best rates around?
A. This is a subject that keeps cropping up with our clients time after time.
As you say, the effort put in keeping tabs on your many accounts versus the rewards attained is quite often frustrating.
In the past, we would simply say ‘keep at it’ as there was really no alternative.
However, there are now cash management services available which source the best available rates, bearing in mind a client’s wishes on:
- Immediate access v fixed for a time period
- £85,000 Financial Services Compensation Scheme limit per person, per institution
Typically, even after the extra costs of the service, better rates can be achieved.
The other main benefit is that as accounts near the end of their notice period, new accounts are researched on your behalf, meaning that you don’t need to do the hard yards yourself.
It is this peace of mind that you may find attractive.
If you’d like more information, simply contact us.