Many people hold money in cash for multiple reasons which could be temporary or long term, and they often let this cash sit in a current account earning little or no interest, when with a simple change they could be earning a reasonable rate of interest.
Interface Financial Planning has had a relationship with Insignis for several years, many clients have taken advantage of what Insignis provide, and they have been pleased to earn quite significant amounts of interest as a result.
I stress that this is not an investment, and your money is always held in cash.
What is Insignis:
- Insignis Asset Management is a UK-based cash savings and fintech platform. Founded in 2017, it lets individuals, businesses, charities, and schools manage and spread cash across a panel of almost 60 regulated UK banks through a single dashboard.
- Clients complete a single application to open their Insignis account which provides access to thousands of different savings products. Once set up your funds go into HSBC as the hub account and you can then choose your term and rate and spread you funds amongst all of the banks that are available. Some of your cash can be available on instant access, and some can be deposited on a longer term which usually provides a higher rate of interest, the choice is entirely yours and you are always in control
- For clients with large amounts of cash Insignis allows you to spread your cash amongst multiple different banks so that you can maximize your protection under the Financial Services Compensation Scheme (FSCS) per banking group. This limit is currently £120,000 for single account holders and £240,000 for joint accounts. For further information about the FSCS see notes below.
Why does Interface Financial Planning recommend Insignis?
- We want our clients to make the most from their money whether it is invested, held in assets such as property, or held in cash.
- Insignis is fully integrated with our CRM system Intelliflo which reduces administration for us and our clients when we are working with them on their life time cash flow projections. The balances of our clients Insignis accounts are updated daily so that we can see their cash balances alongside their investments and pensions, and this eliminates the manual work of gathering data from multiple cash accounts.
- Our agreement with Insignis provides us with 50% of their fee in the first year and then 0.25% of their fee ongoing, the details of the Insignis fees are stated below.
For clients what do they get from using Insignis:
- Clients have access to multiple banks and the ability to easily switch between them. Without Insignis if they want to change banks, they would have to submit a new application to the new bank and transfer their money from one bank account to their new bank account, After they have opened their Insignis account it is simply a matter of logging in and making the change with no administration required.
- When clients log into their Personal Finance Portal account, they can see their Insignis cash balances alongside their investments and pensions without having to log into multiple different bank accounts.
- In our experience clients obtain a much better return from their cash when using Insignis because it is so much easier to manage than opening and managing multiple bank accounts.
- On rare occasions there may be a higher interest rate available outside of Insignis, but we have found that the additional administration of researching and opening an account means that clients rarely take this route.
How do I open an Insignis account?
- If you are one of our clients, we can open an Insignis account directly from your account within Intelliflo this gives you the advantage of immediately seeing your Insignis account when you log into your secure PFP (Personal Finance Portal) account.
- If you would like to become one of our clients and would like us to set up your PFP account, please get in touch and we can register you, we do not have a minimum fee and you do not have to be an investment client.
- You can go direct to Insignis to open your account but if you opt for this route, please mention Interface Financial Planning when you are completing your application. Please also consider that if you allow us to start the process we complete much of the administration for you.
- Please note that the minimum opening deposit increases if you go direct and you may find it advantageous to apply for your Insignis account through us. The minimum deposit for direct clients is £100,000 but this reduces to £50,000 for clients introduced by a financial adviser like Interface Financial Planning.
- For Cash ISAs the minimum deposit is £10,000 and Insignis are very pleased to accept your ISA transfers from other institutions. If you already have multiple cash ISAs and you would like to consolidate them using Insignis we would be very pleased to help you.
Additional Information:
Insignis is totally impartial and it does not take any fees from the underlying banks, which ensures that their account recommendations are completely unbiased.
Insignis Fees
There is an annual service fee which is a percentage-based fee between 0.10% and 0.25% based on your total portfolio balance. There is a sliding scale and the percentage decreases as the volume of your deposited cash increases. Fees are calculated daily, pooled, and debited monthly in arrears from a designated “fee reserve” account which is funded at startup. There are no hidden costs, transaction charges, setup fees, or switching fees.
Financial Services Compensation Scheme
Many high street banking brands share a single banking licence (for example, sister brands under a major banking group). You can check your bank’s regulatory status on the FSCS tool to discover whether separate brands share a limit. FSCS bank and savings protection checker
