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The five ‘whys’ of advising on cash, from value to versatility

66% of advisers now guide their clients’ decisions on cash. That’s a 21% increase in just three years. Here’s why. In fact, here’s five of them.

Cash benefits Fintech innovation Financial advice

Date published: 04 November 2024

The five ‘whys’ of advising on cash, from value to versatility

When we picture ‘wealth’, it’s typically stocks, bonds, and other investments at the forefront of our minds. But with interest rates high, and market volatility creating uncertainty, cash is enjoying a resurgence. Today, 66% of advisers are guiding their clients on matters of cash.

Beyond the usual considerations of security and flexibility, cash has become lucrative. Here are five reasons to begin advising your clients on cash:

1. High income potential

In July. And despite a slight drop since, today’s market-leading rates are still 50 times higher than April 2021’s 0.1%. The result? Your clients can enjoy meaningful returns on their cash savings as part of a wider .

For many clients, cash savings tend to sit idly in accounts, earning little interest simply because of inertia:

Around 40% of savers only check interest rates once a year
43% of savers have not moved their cash to higher-earning accounts since 2022
73% of cash in the UK savings market is earning savers less than 2%

But more advisers are bringing cash into the conversation – 21% more than three years ago. By introducing cash as a strategic asset, you can help your clients grow their savings, complement other investments, and boost their long-term returns

2. Security and stability

Today’s world is unpredictable – and this is only compounded by constant flux in fiscal policy.

In times like these, many savers turn to cash for its reliability – that steadiness amid the storm. Our recent Opinium Report shows cash is popular for its stability, predictability, and guaranteed returns, especially in Fixed Rate accounts.

Plus, with FSCS protection of up to £85,000 per individual, per banking group, cash ensures your clients’ portfolio is sufficiently protected.

But not everyone capitalises on these protections. The adviser plays a key role in ensuring their clients are taking full advantage of the FSCS.

3. Starting meaningful conversations

Prospective clients may not feel confident discussing stocks, bonds, and other more complex assets. But they’re likely to be more familiar with their savings. This makes cash a universal conversation-starter – a gateway to broader dialogue, and more lucrative opportunities.

There are numerous types of clients where this cash is an ingenious opener:

Those who are considering wealth management for the first time
Older individuals, who are increasingly risk-averse
The less financially literate

Sheer prospective clients seem sceptical about other assets, remember this mantra: start with cash.

4. Total flexibility

Cash is for more than emergencies. It’s a versatile asset that can support your clients’ financial goals as they progress from one life stage to the next.

For example, are they looking for security and strong returns ahead of an upcoming purchase or investment? There’s a savings account for that. Are they more interested in setting something aside for their beneficiaries, planning for the long-term? There are savings accounts for that, too. Whatever their circumstances (or their dreams), cash can accommodate.

For that reason, it’s important to proactively include cash as part of a comprehensive financial plan. As your clients’ goals evolve, take advantage of cash’s unmatched flexibility.

5. Easier than ever

Historically, advising on cash has been a full-time job, for part-time pay. Other assets have been more rewarding for adviser and client alike, and the returns have failed to justify the work.

But cash deposit platforms have the potential to tip that balance. By making it easy to see all your clients’ cash in one place, they give you greater visibility and support more meaningful conversations – without the admin or effort you’ve come to expect.

Additionally, cash deposit platforms ensure your clients never need to apply for savings accounts again. So they can effortlessly capitalise on new rates, and build a cash portfolio that meets their evolving needs.