If there is a disproportionately large amount of cash in your portfolio, the most likely reason is that you have recently funded your account, and the cash has not yet been captured by our investing cycle. It is not possible to keep cash on deposit with Nutmeg for long periods.
We will, however, always leave enough cash in your portfolio to pay the management fee, and we’ll never let your account go into debit.
Interest on cash
Any un-invested cash within your Nutmeg account will earn interest at the current Bank of England (BOE) base rate less 0.35 per cent. Click here to see the current BOE base rate.
If the BOE base rate is below 0.35% you will not be charged any debit interest and the effective interest rate will be zero.
Interest paid on cash held within a Nutmeg ISA or Lifetime ISA (remember we only offer stocks and shares ISAs and LISAs) is not subject to tax.
Interest paid on cash held within a Nutmeg Standard Taxable Account (sometimes known as a non-ISA or General Investment Account (GIA) is subject to tax at standard income tax rates).