Cash Management tips

[bradders]

I am currently holding quite a lot of cash after investments have paid out (EIS). Does anyone have any cash management company tips?

I used quite some time ago, a company called DCM that spread the risk of holding cash over lots of different accounts.

Is anyone familiar with this that could advise a decent company to do this for me again? Or point me back at DCM is they are the recommended ones?

Any other alternatives I should consider, to offer reasonably quick access to funds, but safe from failure?

[Mattt]

What sort of sum, significantly greater than FSCS limits?

[williaa68]

You can have up to £2m in an NS&I instant saver which I think pays 1% at the moment and 70bps post 30 April. If you think you are going to need the money in the short term on a convenience / rate trade off that's not too bad.

If you have money you can lock up for a while then i'd do it quickly as the risk of a rate cut post budget must be high. Atom bank 2 year at 1.7% isn't a bad home for £85k in my view. If you want someone to do all the work for you Octopus Cash with do that but it will cost you 25-35bps.

[bradders]

Mattt said:

What sort of sum, significantly greater than FSCS limits?

Yes, sadly and gladly, depending on your viewpoint, way over FSCS limits.

[bradders]

williaa68 said:

You can have up to £2m in an NS&I instant saver which I think pays 1% at the moment and 70bps post 30 April. If you think you are going to need the money in the short term on a convenience / rate trade off that's not too bad.

If you have money you can lock up for a while then i'd do it quickly as the risk of a rate cut post budget must be high. Atom bank 2 year at 1.7% isn't a bad home for £85k in my view. If you want someone to do all the work for you Octopus Cash with do that but it will cost you 25-35bps.

The NS&I could well be of interest. Do you know if it's 100% protected? Thanks for the heads up.

[Mr Whippy]

bradders said:

williaa68 said:

You can have up to £2m in an NS&I instant saver which I think pays 1% at the moment and 70bps post 30 April. If you think you are going to need the money in the short term on a convenience / rate trade off that's not too bad.

If you have money you can lock up for a while then i'd do it quickly as the risk of a rate cut post budget must be high. Atom bank 2 year at 1.7% isn't a bad home for £85k in my view. If you want someone to do all the work for you Octopus Cash with do that but it will cost you 25-35bps.

The NS&I could well be of interest. Do you know if it's 100% protected? Thanks for the heads up.

We’ve used this, seems ok for now.

0.7% interest. Government backed.

I’m not sure of it’s efficacy vs multiple fscs backed ‘normal’ accounts.

But in either case if you trust one you should trust the other.
If you don’t trust one then by extension you should be weary of the other.
(Ie, shtf scenarios)

[KTF]

bradders said:

The NS&I could well be of interest. Do you know if it's 100% protected? Thanks for the heads up.

You are basically giving your money to the government which is why the 85k limit doesn't apply. Its as protected as these things can be.

Depending on the amount you could always put 85k in the current highest instant access account then the rest in NSI (or spread around other providers).