All our portfolios have a small amount of cash. The cash is used to pay the management fee without needing to sell investments to do so. Cash can also play a part in a diversified portfolio. We never let your account go into debit.
We also give our investors the ability to create a pot that is 100% allocated to cash within their General Investment Account (GIA), ISA, and Lifetime ISA (LISA) wrappers.
Cash pots within your GIA, ISA, and LISA wrappers
For this specific offering, we charge what we consider to be a small Nutmeg management fee of 0.25% in addition to paying you 0.40% interest. The Nutmeg management fee rate and the interest we pay on cash held within the cash pot can change. We will provide notice of any upcoming changes.
Any uninvested cash within your Nutmeg account earns interest at the current Bank of England (BOE) bank rate less 0.35%.
If the BOE bank rate is below 0.35% you won't receive any interest.
Important information about tax
Interest paid on cash held within a Nutmeg pension, stocks and shares ISA or stocks and shares Lifetime ISA is not subject to tax.
Interest paid on cash held within a Nutmeg general investment account is subject to tax at standard income tax rates.