Investors are getting dismal interest rates when they hold cash on the UK's biggest advised platforms, with some actually making a loss after fees, an investigation by Professional Adviser has found.
The UK base rate is at a record low of 0.5%, but all except one of the top ten largest advised platforms currently pay interest on cash well below this level. Some levy additional charges which further erode returns. By comparison, some of the best deals on instant access current accounts among the high street banks offer interest rates of up to 5%, according to website Moneysavingexpert, though specific terms apply. The platforms argued that their low cash interest rates reflect that the cash accounts they provide are not meant for investors to hold money in long term. Cofunds ...
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