Effective Cash Management Policy

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The Effective Cash Management Policy explains how to maximise the value of cash:

  1. Get the best interest rate returns
  2. Protect money held on deposit with the Financial Services Compensation Scheme
  3. Only retain the amount required for the next 12 months on Instant Access
  4. Build a portfolio of Fixed Rate Accounts with the balance

The basic principles of managing money in this way means:

  • The client always has sufficient access to capital
  • The client is never more than 12 months away from a maturing tranche of money
  • The client accesses higher rates of interest via the Fixed Rate Account which maximises its value

However, to obtain the best value for the financial planning process, the Financial Adviser only needs to provide the client with a generic report on the value that they could receive with a bespoke portfolio of cash deposit accounts.

Any form of implementation of the accounts becomes a commercial activity between the Financial Adviser and the client.