Cash Facility

All product wrappers opened and held through the Novia wealth management service incorporate their own Cash Facility. This allows you and your adviser the freedom to manage the levels of cash within your portfolio to suit your needs and provide ready access for your money whenever you need it. All of your cash and investments are protected by Novia in accordance with the rules of the Financial Conduct Authority that protect client money and assets.

Here you can find details of current and historic interest rates and below is a Q&A section giving further information.

Interest Rate Payable on the Novia Cash Facility

  • Client money is placed with a number of financial institutions for greater diversification and to achieve better rates of interest.
  • A portion of the client money may be placed in deposit or notice accounts. The maximum term for a deposit or notice account is 95 calendar days. 
  • Where a deposit or notice account is used, there is an increased risk to withdrawals, but this is likely to only result in a delay to a distribution or transfer if in the very unlikely event that Novia went into liquidation. This risk will not impact normal withdrawals. 
  • Interest earned on client money is paid to Novia who in turn pay the cash facility interest at the rates published below.
  • Client interest is calculated on a daily basis and applied monthly on the 14th of the following month, e.g. interest relating to the month of August will be paid on 14th September.
  • Changes to the interest rate will be applied to the Cash Facility within one working day.
  • Liability to tax on interest is dependent on the product wrapper involved. Please consult your Adviser and the Novia Service Terms and Conditions for more information.
PeriodInterest Rate
From To Net* pa % Gross** pa % Gross AER*** %
01/09/08 08/09/08 3.80 4.75 4.85
09/10/08 06/11/08 3.40 4.25 4.33
07/11/08 04/12/08 2.20 2.75 2.78
05/12/08 08/01/09 1.40 1.75 1.76
09/01/09 05/02/09 1.00 1.25 1.26
06/02/09 05/03/09 0.60 0.75 0.75
06/03/09 15/05/11 0.20 0.25 0.25
16/05/11 01/01/13 0.32 0.40 0.40
02/01/13 30/08/13 0.40 0.50 0.50
02/09/13 14/02/15 0.24 0.30 0.30
15/02/15 31/08/16 0.12 0.15 0.15
01/09/16 Current 0 0 0

* Net - interest rate paid with deduction of tax
** Gross - interest rate paid without tax deduction
*** AER - stands for annual equivalent rate and illustrates the interest rate if interest was compounded and paid at the end of the year

Novia Cash Facility - Q&As

Q/ What is the Cash Facility?
A/ The Cash Facility forms part of every Novia product wrapper available through the Novia service. Part of the value of the investments in your product wrapper* is held in cash, with a minimum of 2%, and no maximum balance. Movements of money to and from, and within, a product wrapper take place through the Cash Facility, e.g. income payments on any investments you hold, investment manager rebates negotiated by Novia and payments out to your adviser.

Q/ Where is money in the Cash Facility held and how safe is it?
A/ Money held within the Cash Facility is held under client money regulations enforced by the financial regulator, the Financial Conduct Authority. These rules ensure that money within any Cash Facility is held in a designated account with our bankers and used specifically as you request. Our bankers are primarily HSBC although other Tier 1 banks may also be used. All bank accounts holding client money are segregated for your
protection. Money held within the Cash Facility is also covered by the Financial Services Compensation Scheme (FSCS) bank deposit insurance. Under the FSCS, money within the Cash Facility is covered up to £85,000 (as of 01 January 2017), per person, per banking licence. So if you hold money elsewhere with a member bank of the UK HSBC group, you will be covered at a level of £85,000 (as of 01 January 2017) of the total of all your deposits, wherever they are held within the group.

Q/ Is interest paid on money held within the Cash Facility?
A/ Yes, all money held within the Cash Facility earns interest.

Q/ Will I pay tax on any interest earned?
A/ This depends on the product wrapper concerned and the regulations regarding tax at the time. As of 2016/17 tax year all interest due on cash held within the Novia Cash Facility will be paid gross, as per the introduction of the Personal Savings Allowance. Depending on your tax rate you may or may not have to pay tax through self-assessment. Corporate clients may have different tax treatments. You should always consult your adviser for further information on tax, which may be affected by your personal circumstances. 

Q/ Where can I get more information on the Cash Facility?
A/ You should speak to your adviser for more information on cash management within the Novia service and how the Cash Facility may affect you. There is also further information available in the Key Features Document and the Terms & Conditions, which are available here.