This information is only relevant for investors who use the Wealthtime platform. If you use the Wealthtime Select Platform, please go to the relevant page for you.

Your cash account

Each of your accounts with us includes a cash facility. We require you to keep 2% of your total funds on our platform in cash, ready to be used for fees or withdrawals.

How we look after your money

We’re authorised and regulated by the Financial Conduct Authority (FCA). As part of this, we must have certain safeguards in place. The money and assets belonging to investors is ring-fenced, and kept separate from our company’s money. This means that in the unlikely event of our company failing, your money would be protected and safe from claims by creditors.
Any uninvested cash is held in client money accounts with our banking partners. We carefully select which banks we work with – carrying out due diligence checks on elements including financial strength and reputation. We assess our relationships with these banks on an ongoing basis to ensure your money is appropriately protected.

Spreading client money across several banks, rather than just using one, reduces exposure to any one institution. It also lessens the risk of cash being unavailable if any of the banks were to have technical problems. The Financial Services Compensation Scheme (FSCS) means that you may be entitled to compensation of up to £85,000 per banking license. Diversifying where we place client money means you may be covered for a larger amount than if we were to place all your money with one bank. However, this does depend on how much cash you hold, and how much is with each bank. Client money isn’t distributed equally across the banks and the amounts with each change regularly. And as the limit is per person, the £85,000 amount would include anything you held with the bank already.

Learn more about the FSCS here: www.fscs.org.uk

How we treat interest

How much interest will you receive on the cash you hold?

We require you to hold a minimum of 2% of the total amount you invest in our Cash Facility to cover any fees due. We receive interest on the Cash held within the account. For the period of 1 October 2023 to 31 December 2023, we received 5.23% and paid 1.98%. We currently pay an interest rate of 1.98% on Cash holdings (this amount will vary as interest rates rise and fall), which is informed by the HSBC instant savings rate.

What does this mean for you?

This means for every £1000 held, we’ll receive £52.30, we’ll pay you £19.80 and we’ll keep £32.50. The £32.50 we keep is the equivalent of a 62% charge on the interest earned in your Cash Facility and is an additional charge on top of your Wealthtime Annual Charge. This additional charge, a Supplementary Platform Charge, helps us to keep our Annual Charge as low as possible while also investing in our platform to ensure we can continue to offer you and your Adviser the best possible service

As we charge you an Annual Charge on the Cash you hold we will temporarily increase the interest rate paid to you by 0.25% as an additional amount. This increase is to offset the Annual Charge that is currently being incorrectly charged on Cash holdings; however, please note your Annual Charge may be more than 0.25%.

Interest rates

Below are the actual interest rates we’ve received, paid out and the equivalent charge over the last 12 months; however, it’s not indicative of future rates.

Period	Interest Wealthtime received	Wealthtime pays you	Equivalent percentage charge
1 Jan 23 – 31 Mar 23	3.85% (£38.50)	0.50% (£5)	87%
1 Apr 23 – 30 Jun 23	4.44% (£44.40)	0.90% (£9)	80%
1 Jul 23 – 30 Sep 23	5.25% (£52.50)	1.29% (£12.90)	75%
1 Oct 23 – 31 Dec 23	5.23% (£52.30)	1.98% (£19.80)	62%

Interest will be payable monthly in arrears and will be paid on the 15th of the month or the next available working day, for example, interest accrued in January 2024 will be paid on the 15th of February 2024.