Do you pay interest on cash held in my account?

Yes, you'll receive interest at a rate of 2.45%.

This is a managed rate, which means we will regularly review and update it when needed. This will help us to make sure that the interest you receive is fair and offers good value.

We'll keep any extra interest we receive on your cash above the 2.45% we pay you. This is to cover our costs for managing your cash (for example, our banking costs). It also allows us to continue to develop our products and services.

Any cash in your account will earn interest daily and will normally be paid into your account on the first working day of the month.

Cash may not offer you the best investment returns

You might want to consider the effect of inflation if you decide to keep your money in cash over the long term. Inflation typically reduces the buying power of your cash over time. 

If you have a Vanguard Personal Pension and you only use it to hold cash, or mainly cash, you should be aware that the value of your pension may be at greater risk of being reduced by inflation.

You can find educational material on our website on investments and holding cash.

If you are unsure about investing, we have a tool on our funds page that could help. Choose the Get started button under Need help building your portfolio?

We also offer a managed service for our ISA and personal pension where we choose the funds for you that fit your attitude to risk. Then we manage them every step of the way. You'll also get expert investment guidance from real people if you need it.

How your money is protected

We’re authorised by the Financial Conduct Authority and are required to keep our clients’ money and assets separate from our own. Your money is ring-fenced in the unlikely event that we became insolvent. 

Clients are also covered by the Financial Service Compensation Scheme (FSCS). For further details, go to FSCS or you can discuss this with us.