Obtaining a safe and competitive return on your cash can be incredibly frustrating and time-consuming. There are scores of accounts to choose from. Opening new accounts can take an age. It is difficult to ensure that your money is invested with secure institutions. Interest and bonus rates on accounts change all the time and the best rates often apply for only a few months.

Our Dynamic Cash Management service is designed to ensure that:

• Your cash earns consistently competitive interest.
• Your cash is secure.¹
• Your time, effort and worry are minimised.

We do this by reviewing the UK savings market, choosing high interest accounts with reputable institutions, arranging the paper work, monitoring the accounts and institutions, moving your money when the best accounts change and generally keeping you informed.

Dynamic Cash Management is designed for people who expect to have over £250,000 in National Savings, bank or building society accounts over the next year.

How It Works

• We ask you a number of questions including how long you want to invest your cash and how much you are depositing.
• We open an account for you with Cater Allen Private Bank (part of the Santander group). We call this your Hub Account. Whenever you want to place extra money with Dynamic Cash Management, you simply pay it into your Hub Account.
• We open a number of other bank and building society accounts in your name or we invest in National Savings and transfer money from your Hub Account. We choose accounts with competitive interest rates that meet your requirements for security and access.
• We review your investments regularly. If some of your accounts have become uncompetitive, we switch money to better accounts. We also switch accounts if new information makes us believe an institution you have money with has become too risky.
• When you want your money back, it is paid into your Hub Account, and then into your own personal account.

Accounts In Your Name

One of the main features of Dynamic Cash Management is that we open accounts in your name. This has two main benefits.

• One is that the Financial Services Compensation Scheme (FSCS) applies to more of your money. FSCS protection is limited to £50,000 per institution (£100,000 for joint accounts). By splitting your deposit between a number of institutions, more of your money is guaranteed by the FSCS.
• Another is that the best interest rates are typically offered to individual investors rather than other institutions. By opening accounts in your name, we find we are able to obtain much better interest rates than are available to institutions.

Which Building Societies And Banks Are Used?

jonathanfry plc has analysed and monitors the financial strength and prospects of over 125 banks and building societies. Our database covers the whole of the UK savings market and is reviewed regularly to ensure that our information is up to date. We place large sums with banks and building societies with excellent financial strength. We place money with other reputable institutions when they offer top interest rates, but with more of the investment covered by the FSCS. We currently avoid over 50 institutions completely because of poor financial strength, their uncompetitive products, or their poor customer service.

What Does It Cost?

We charge 0.3% per annum for Dynamic Cash Management. Most investors increase the interest earnt on their money by much more than this. Our service normally substantially increases the safety of your savings. It also saves you time, effort and worry.

Example 1²

Peter received £2m following the sale of his business. He transferred this to his High Street bank “High Interest Savings Account” which received 1.25% AER interest.

After he transferred the £2m to Dynamic Cash Management, the average interest rate was 3.25% AER. His money was split into four different accounts initially, and over the course of the first year seven different accounts were used.

Over the next 12 months, Peter, who paid income tax at a marginal rate of 40%, was £16,950 better off. He had increased the interest received from £15,000 after tax to £31,950 after tax and fees. He also benefitted from much more secure savings.

Before using Dynamic Cash Management, all his money was with one institution. Afterwards, it was widely diversified. Also, much more of his cash was covered by the FSCS.

Example 2

Doreen was 76 and held £500,000 in two building society accounts. She chose them carefully when both offered market leading rates of interest. However, the interest rate on both fell substantially to an average of 2.3% AER. Doreen didn't fill in a tax return and paid 20% withholding tax on all of the interest received.

After she transferred her £500,000 to Dynamic Cash Management, the average interest rate achieved was 3.4% AER. With our help, she filled in a tax return and received some of the tax deducted from her interest back. Over the next 12 months, Doreen, who received no other taxable income, was £4,810 better off. She increased the interest received from £9,200 after tax³ to £14,010 after tax and fees.

To Apply

To apply for Dynamic Cash Management, please talk to one of our team. Call us on 01748 825971 or click here to send an email to dcm@jonathanfry.co.uk.

Full details are given in the document Dynamic Cash Management Terms and Conditions. To download a description of our Dynamic Cash Management service click here.

DCM in the Press

¹ Absolute security is nigh-on impossible to achieve and Dynamic Cash Management does not aim for this. Moreover, many very secure institutions offer low interest rates. Nevertheless, we find that Dynamic Cash Management substantially increases the security of savings for typical clients.

² Examples are indicative only. They are based on typical interest rates in January 2010, 17.5% VAT and income tax rates and allowances for the tax year 2009/2010.

³ Doreen's correct tax was a mixture of 0% on £9,640, 10% on £2,440 and 20% on the excess.