At Nicholls Stevens we believe that monitoring client’s cash accounts is as important as reviewing their investments. The old adage that if you look after the pennies the pounds will look after themselves is very true. So, we should all pay a bit more attention to the interest we are receiving on our bank and Building Society accounts.
At Nicholls Stevens we are aware that some clients are very cautious and do not wish to expose their capital to any risk. In this case we are happy to work with you to construct a portfolio of bank and building society and national savings accounts. Such a portfolio would bekept under constant review in the same way as an investment portfolio Carole Nicholls the Principal of Nicholls Stevens won the Money Management Cautious Investment Planner of the Year award in October 2010 so whe is well aware of the investment needs of the cautious investor
Types of Account
Current – essential as a means of accepting regular income such as salary and paying bills
Investment account – a suitable vehicle for earning some interest on surplus cash which may be needed to transfer to current account shortly
Term accounts – This is for money you have earmarked for a particular investment or purchase in the future – you may be able to tie it up and earn more interest
Internet Accounts – sometimes a higher amount of interest can be earned by using internet banking. this can be very convenient particularly for busy people. However, some clients are understandably concerned about security in which case you need to seek out postal or telephone accounts
Things to look out for
If you see an account advertised in a newspaper you need to make sure that you have read the small print. Sometimes a high rate of interest is only available for those customers who are prepared to commit some capital to an investmentproduct at the same time. It is important to realise that the level of risk to your capital may then invrease and also capital may be tied up for a period.
You also need to be aware of accounts which appear to have very competitive rates, where a large part of the rate is made up of a bonus which only lasts for a few months. If you then forget about the account you may find yourself enjoying, or not, as the case maybe a very low rate of interest