Each Elevate customer automatically has access to an Elevate cash account. In addition, the Elevate platform also operates cash accounts at a wrapper level.
The annual gross interest rate we pay on wrapper cash accounts is calculated with reference to the Bank of England base rate. This means that you can always work out what the interest rate paid will be, using the table below (paid rates are rounded up to the nearest 0.01%):
|Base rate (per tier)||% of interest paid to customers|
|0.00% - 0.50%||0%|
|0.50% - 1.00%||30%|
|1.00% - 2.00%||50%|
|2.00% - 5.00%||70%|
For example, under the base rate announced on 2nd February 2023 of 4.00%, the rate we pay to customers on wrapper cash accounts is 2.05% per annum. This is calculated as 0% of the first 0.50%, plus 30% of the next 0.50%, plus 50% of the next 1.00%, plus 70% of the next 2.00%; i.e. 0.00% + 0.15% + 0.50% + 1.40% = 2.05%.
Interest is calculated daily. If the base rate is negative this table will not apply, and paid rates may become negative. When the Bank of England base rate changes, the rate paid to customers will be updated within five working days. The interest rate on the Elevate cash account is 0.83% per annum.
The rate we earn from our banking partner(s) may be higher or lower than base rate, and may vary daily. We retain any additional interest earned as a margin to cover costs in managing cash. We call this margin the Cash Management Administration Charge (CMAC). The CMAC is taken directly from the interest received from the bank(s), so will not appear as a separate charge.