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