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.
Any cash within your Nutmeg account earns interest 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.
Cash pots within your GIA, ISA, and LISA wrappers
You can choose to hold a cash pot within your investment product if you don’t want these funds to be exposed to the risk associated with investing.
There are no fees charged on cash pots.
If a payment can’t be allocated to a cash or investment pot, it will be held as “Unallocated cash”. We will contact you if this happens so you can decide how to distribute the money. Once you've assigned the cash to a pot we'll invest it on our next twice-weekly investment cycle.
Why is there a lot of cash in my portfolio?
If you see an unusually large amount of cash in your portfolio, and it isn’t because you’re holding it in a cash pot, the most likely reason is that a payment has recently arrived and the money has not yet been invested through our twice-weekly investing cycle.