All our portfolios have a small amount of cash. The cash is used to pay the Nutmeg 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 give our investors the ability to create a pot that is 100% allocated to cash within their General Investment Account (GIA) and ISA wrappers. Currently this option is not applicable to a Lifetime ISA pot, although you can change it to 100% cash once it has been created.
We pay interest on cash at the current Bank of England (BOE) bank rate less 0.35%. We will provide notice of any changes.
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.