Everyone should maximise the value of their cash deposits. Whether you are:
- an individual
- a business
- a charity
- a power of attorney (PoA)
- a deputy of the court
- the holder of a SIPP or SSAS pension scheme
The core Principles of Effective Cash Management are:
1. Maximise the rate of interest earned
2. Maximise the level of FSCS protection
3. Only keep the amount you need for the next 12 months on Instant Access
4. Build a portfolio of fixed term accounts with the balance
To work to these principles, it is essential to understand what you require from your money.
As an individual, saving for a rainy day implies a long-term requirement because no one knows when that rainy day might be. Whereas for a business, having cash on deposit to support the trading style of the business might imply both short-term and long-term requirements:
Short-term is more likely to be a known entity, be it for stock, equipment, office requirements etc., it is likely a figure could be attributed to these events.
Long-term, to support the trading style of the business in the event of a fall in revenue, is less of a known entity.
Similarly; for trusts, pensions, charities PoAs and court deputies, the requirement is to understand how much access to capital is required over the next 12 months and how much can be used to build a portfolio to maximise value over the long-term.
Whatever the amount of money and whatever the requirements might be, there is no one single answer that fits all.
It is important to seek advice when it comes to managing your savings, but it's also helpful to understand what your money can do for you, we have this handy calculator
available that can give you an indication into what interest rates your savings may be able to achieve.If you have any questions, please contact our team on 01603 619620.