For Aegon Platform, Aegon Retirement Choices (ARC), One Retirement and Retiready.
Providing a cash facility is integral to the smooth running of the service and is designed to help manage money in and out of the service and pay for charges.
The cash facility holds any money that’s part of your portfolio that hasn’t been invested; this is then normally used to support money moving on or off the platform. It’s not a savings account and isn’t intended for large amounts of money. You can find more information about the cash facility in your terms and conditions.
We'll
- Calculate interest on a daily basis and pay any interest due monthly into your cash facility after deduction of basic rate tax where applicable.
- Apply any base rate changes within one working day.
Current rate
The gross rate of interest we pay on cash held within the cash facility of any product wrapper is linked to the Bank of England Base Rate on a tiered basis as explained below. On the current base rate of 5.00% (as at 1 August 2024) that would be 2.75% (rounded to nearest 0.01%).
The example and table below can help you work out the rate payable. This approach, and the table below, is subject to change, you should check this page on a regular basis.
For example only, with the base rate at 4.00% the rate we pay to customers would be 2.00%.
You’ll receive 0% of the first 0.5%, plus 25% of the next 0.5%, plus 50% of the next 1.5%, and 75% of anything over a base rate of 2.5%. So, 0% + 0.125% + 0.75% + 1.125% = 2.00%.
| Base Rate Band | % of interest paid to customer (per band) |
|---|---|
| From 0 to 0.5% | 0% |
| Between 0.5% to 1% | 25% |
| Between 1% to 2.5% | 50% |
| Over 2.5% | 75% |
We’ll calculate and apply your interest owed within 10 business days of us receiving payment into our corporate account.
Current banking partner
We deposit the balance in your cash facility with, currently, HSBC bank plc. The cash balance earns interest at a corporate rate, reflecting our global corporate banking partnership with HSBC. We retain some of that interest and pay the rest to your cash facility. The amount we pay to your cash facility is described above, which is in line with the design of the proposition as a long-term investments and pensions platform.