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Cash Reserve/Fund Supermarket Cash Funds

Both Cofunds and FundsNetwork offer investors convenient ways to keep their money in a bank-backed cash deposit within a fund supermarket. Both supermarkets offer you an option for cash to be held within or outside of the ISA allowance. When base rates are low, interest rates tend to be unattractive.

Fidelity Cash Manager Account & Cofunds Cash Account:

Both offer investors a cash account into which the proceeds of fund sales can be deposited. ISA monies will lose their tax wrapper. Currently, the Cash Manager Account can be operated by written instruction only, although this can be done through Bestinvest. Standard terms are 0.2% below Bank of England (BoE) base rate for Fidelity and 2% below BoE base rate for Cofunds.


Fidelity ISA Cash Park & Cofunds Cash Reserve:

Both accounts give investors the opportunity to move their ISA Investments in and out of cash. This Facility is especially useful at the end of the tax year. Fidelity ISA Cash Park pays 0.2% above BoE base rate until 31st December 2009, after that date

Cash Reserve/Fund Supermarket Cash Funds Gross Redemption Yield As of Yield Net of Fees Dealing/Notice Net Lower rate tax Higher rate
BofE Base Rate 0.50% 08/07/2010
Fidelity Cash Manager Account 0.30% 26/07/2010 Temporarily Fixed Daily N/A N/A
Fidelity ISA Cash Park 0.30% 26/07/2010 Temporarily Fixed Daily 0.08% 0.06%
Fidelity SIPP Bank Account 0.65% 26/07/2010 Temporarily Fixed Daily 0.24% 0.18%
Cofunds Cash Reserve 0.10% 26/07/2010 Temporarily Fixed Daily N/A N/A
Cofunds Cash Account 0.10% 26/07/2010 Temporarily Fixed Daily 0.52% 0.39%

it will revert to 0.2% below, whilst the Cofunds Cash Reserve currently pays 0.4% below BoE base rate.

There is no charge to switch money into these accounts. Please be aware they should be treated as temporary accounts for holding cash between making investments.

 

 

 

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority

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