Welcome to the April issue of our newsletter keeping you up to date with investment matters. We hope you find it interesting.
You can contact us at advice@argylefinancialgroup.co.uk

Many of our clients keep some cash on deposit with either their bank or building society. Interest rates do vary a lot and it is important to make sure that your cash is working just as hard as the rest of your portfolio !

Your Transact Portfolio offers you a cash account and we thought you might like to compare the facility with your bank or building society account.

Each tax wrapper can hold cash in it, in the same way as any other asset is held. There is not a separate "cash account" within the portfolio holding all cash for all wrappers. This means that cash can be moved between wrappers and be subject to the appropriate tax treatments.

The majority of clients' pooled cash earns interest at a rate achieved by the Royal Bank of Scotland using their Agency Treasury Service (ATS). This money is actively managed by RBS in the treasury market to enhance the yield achieved. The ATS conforms to strict guidelines in the deposit instruments that they can use to conform to Client Money Regulations. All monies are capital guaranteed and the deposits are structured to ensure that sufficient liquidity is maintained.

Due to the nature of the ATS, the "annual equivalent interest rate" cannot be forecast or guaranteed, but we will publish the rate that has been achieved each month in our monthly newsletter. You will also be able to see the current and historical rates on our website.

Investors have access to their cash via a BACS transfer (which is free and takes three working days to clear an account) or a CHAPS transfer (which is a same-day transfer and is chargeable at the cost of £7.50 per item). These withdrawals of cash from the client portfolio can only be paid to the client's nominated bank account in their own name (and not to any third parties).

We do offer the cash component of a Maxi ISA but not a mini cash ISA. Inland Revenue rules do allow the transfer of a previous tax year's mini cash ISA into the cash component of a Maxi ISA so we can accept these transfers. Cash pending investment can also be held in the stocks and shares component of the Maxi ISA (though remember that interest paid on this cash will be subject to a 20% non-reclaimable flat rate tax charge).

We will deduct income tax (at 20%) where applicable from interest earned and this will be clearly visible in the portfolio's Transaction Listing. We can pay interest gross to non-taxpayers, subject to their completion of the relevant R85 Inland Revenue declaration.