Cash Management

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About Cash Management

Cash management is a way of holding large cash savings across several banks at once, so your money earns a better rate and more of it stays protected if a bank ever fails. The Financial Services Compensation Scheme protects the first £120,000 you hold with any one bank, and anything above that isn't covered. By spreading a large balance across several banks, you keep more of it inside that protection while reaching the best rates available at the time.

If you've got a large amount of cash sitting in the bank, maybe from selling a business or property, an inheritance, or savings you've built over time, you're probably after the same two things. You want it earning more, and you want it safe.

At Vintage Wealth Management, we give clients an online platform connecting up to 30 banks and hundreds of savings rates. You can check the financial strength of each bank before deciding where your money goes, move funds between providers through a single login, and you only ever do the paperwork once. It's a simple way to put idle cash to work as part of your wider plan.

What are cash management solutions?

Cash management solutions are platforms that let you hold money across lots of different banks through a single account. Instead of opening savings accounts one by one and tracking them all yourself, you log in to one place, see the rates on offer, and move your money to wherever suits you.

A normal savings account ties your money to one bank and one rate. If a better rate comes along somewhere else, you're left opening another account and going through the checks again. A cash management platform does away with that. The banks sit behind the platform, so once you're set up you can spread your savings across as many of them as you like and switch between them without starting from scratch each time.

For anyone holding a large balance, that solves two problems at once. You're no longer stuck with whatever rate your bank happens to offer, and you're not leaving more than £120,000 with any single bank, which is the most the Financial Services Compensation Scheme will protect if one of them fails.


How does cash management work?

Cash management works by holding your money across many banks through one platform, so you can move it to wherever pays the best rate without opening a new account each time. You make your choices from a single portal, and the platform sends your cash straight to the banks you pick.

It starts with one central holding account that you fund first. From there, you spread your money across the banks on the platform and choose how long to commit it for. It all runs off a single application, so you're not repeating the checks every time you move.

The accounts behind the platform come in three types. Instant access lets you withdraw whenever you want. Notice accounts pay a little more in return for a set notice period before you can take money out. Fixed term accounts pay the most and hold your money for an agreed length of time.

Opening one usually runs through four steps.

  1. Open the platform account and complete one set of checks.

  2. Move your cash into the holding account.

  3. Pick the banks and account types that suit you, using the rate and financial strength data on screen.

  4. Send your money out to those accounts and manage all of them from the same login.

Your money only stays in the holding account while you decide where to send it, and you stay in control throughout, since the platform shows you the rates and the financial strength of each bank rather than choosing for you. When a fixed term ends, the cash returns to your holding account, ready to move again.



Why use a cash management service?

A cash management service does two things a single savings account can't. It gets you better interest by opening up rates across the whole market, and it keeps more of your money protected by spreading it across banks rather than leaving it all with one.



Earning a better rate
on your cash

Leave a large sum in a current account or an old savings account and it's almost certainly earning less than it could. Rates move constantly, and the best ones rarely sit with the big high street banks. A platform shows you hundreds of rates in one place and lets you move to a better one without opening yet another account, so your cash keeps pace instead of drifting on a rate you've forgotten about.

Keeping more of your money protected

The Financial Services Compensation Scheme covers up to £120,000 per person with any one bank, and anything above that isn't protected if the bank fails. By splitting a balance across several banks, you keep more of it inside that cover. 

If you've recently had a life event like selling a home or receiving an inheritance, the FSCS also protects temporary high balances of up to £1.4 million for six months, which buys you time to spread the money properly. Cash loses value to inflation over time, so for money you won't need soon, a tax-efficient investment like an Enterprise Investment Scheme or Venture Capital Trust may suit it better.

Cutting out the admin

Running this yourself means opening account after account, passing the same checks each time, and keeping track of maturity dates across all of them. A platform handles it from one login. You apply once, see everything in one place, and move money between banks without starting the paperwork from scratch.

Why work with Vintage Wealth Management.

Why work with Vintage Wealth Management.

Our cash management service is available to clients across London and the rest of the UK. We give clients access to an online cash management platform with up to 30 banks and hundreds of instant access, notice and term deposit rates. You can see the financial strength of each bank before you decide where your money goes, move funds between providers from a single login, and send cash straight to the banks you choose without opening each account from scratch.

Cash doesn't sit in a silo. How much you hold, where you hold it, and how much you keep accessible all feed into your wider plan, alongside your investments, pensions,estate, and anytrusts you hold. We look at the whole picture and help you decide how much of your cash should be working harder and how much should stay close to hand.

Vintage Wealth Management has been advising on cash, investments, and financial planning for over a decade. We're named in the FT Adviser UK Top 100 Financial Advisers every year since 2021, and our team includes Chartered Financial Planners and Fellows of the Personal Finance Society. We have offices in Central London, North West London, Portsmouth, Buckinghamshire, Swindon, and Dublin, and we work with clients across the UK.

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Frequently asked questions about cash management

  • For most people holding more than £120,000 in cash, yes. The higher interest across the platform usually outweighs the fee, and you get more of your money protected at the same time. Below that level, a single competitive account may do the job just as well.

  • Yes. Interest is taxed like any other savings interest. Basic rate taxpayers can earn £1,000 a year tax-free under the Personal Savings Allowance, higher rate taxpayers £500, and additional rate taxpayers nothing. Anything above your allowance is taxed at your normal rate.

  • It depends on the accounts you choose. Money in instant access accounts can be withdrawn at any time, notice accounts need a set period of warning, and fixed term accounts lock your money away until the term ends. You decide the mix when you set things up.

  • The main risk is a bank failing, which is why staying within the £120,000 FSCS limit per bank matters. The other is inflation, since cash can lose spending power over time even at a good rate, so it suits short-term needs and security rather than long-term growth.

  • Your money sits in accounts with FSCS-regulated UK banks, so it's protected up to £120,000 per bank if one fails. Spreading a large balance across several banks is what keeps more of it covered, which is the main reason these platforms exist.

Disclaimer

The information supplied is based upon our understanding of current UK law and HM Revenue and Customs (HMRC) practice. Tax law and HMRC practice may change from time to time. The value of any tax allowance will depend on the individual circumstances of the investor. Financial Services Compensation Scheme (FSCS) protection limits are set by the Prudential Regulation Authority and may change in the future. The level of protection that applies will depend on individual circumstances and the way deposits are held. Interest rates on cash deposits are variable and not guaranteed, and the returns available through a cash management platform will change over time. Cash held on deposit may lose value in real terms over the long term as a result of inflation. The Financial Conduct Authority does not regulate cash deposit platforms or tax planning. The information contained within this communication does not constitute financial advice and is provided for general information purposes only. Links to related sites have been provided for information only. Their presence on this blog does not mean that the firm endorses any of the information, products or views published on these sites. No warranty, whether express or implied is given in relation to such information. Vintage Wealth Management or any of its associated representatives shall not be liable for any technical, editorial, typographical or other errors or omissions within the content of this communication.