Read how other people have benefited from Dynamic Cash Management1
Peter
Peter received £2m following the sale of his business. On the advice of the Private Banking arm of his Bank he transferred this to their 'High Interest Premium Deposit Account' which received 1.30% net
After he transferred the £2m to Dynamic Cash Management, the average interest rate was 3.18% 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 £16,560 better off. He had increased the interest received from £15,600 after tax to £32,160 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.
Diana
Diana, 76, 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. Diana 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 3.37% AER. Using the consolidated tax statement that we provided, she filled in a tax return and received some of the tax deducted from her interest back. Over the next 12 months, Diana, who received no other taxable income, was £5,054 better off. She increased the interest received from £9,200 after tax to £14,254 after tax2 and fees.
1 Examples are indicative only. They are based on typical interest rates in July 2011 and income tax rates and allowances for the tax year 2011/2012.
2 Diana's correct tax was a mixture of 0% on £10,090, 10% on £2,550 and 20% on the excess.