Cascade Commentary

December 2020

By Surish Pal

While we recognise the challenges of the year that was, our attentions turn now to the year ahead and we are keen to support you and your cash savings in the best way possible throughout the year. We are delighted to share the expansion of our services as we progress into 2021 to assist us in doing so.

I’m delighted to share the expansion of our team with Dr Ryan Dias joining us in January 2021 as Client Relationship Manager. Ryan’s role has been designed to extend our hands-on approach and offer increased support for our clients and their professional advisers at a time when rate changes have increased.

Keeping up-to-date on the latest rates payable on your accounts is important to ensure you can compare your options across the market. Our team are the best in the market with the largest cash dataset in sterling both monitored and maintained daily. We make use of this incredible savings intelligence to ensure that we let you know as and when rates are moving, or are expected to move, and can utilise our extensive experience and knowledge to inform you of your best options on a regular basis.

Throughout 2020, we have supported many clients that have each had bespoke circumstances that have led them to cash positions. Some of our clients exited out of their businesses just as the first lockdown commenced. They sought a safe haven for their capital having worked years to obtain it while they digested what was taking place in the market and what it meant for them. We have supported many clients that have placed money for forthcoming tax bills across different banking licences to make sure that the money is safely protected, and we have also seen many clients take advantage of the temporary high cash balance protection under the Financial Services Compensation Scheme while moving home.

We have seen many clients adapt over the year and become more accepting of what is now being called the “new normal”. There is a sense that the larger financial institutions are financially resilient following the regulatory changes and improvements made over the last decade. Clients that were concerned at the start of the year are now feeling more confident on their investable options, and we are supporting withdrawals and closures as they seek to take advantage of investable opportunities with their professional advisers.

In the coming twelve months, we feel that interest rates are likely to plateau. Negative interest rates remain on the horizon and in such a scenario, we will be best placed to let our clients know of the best options on the table for them from the building societies and challenger banks that so often lead the best rates. It’s our inhouse belief that positive rates will still be available should negative interest rates occur, as the inertia so prevalent in the savings market will continue to require competitive rates and meaningful differences from challenger banks and building societies to encourage people to switch account.

We have had a few clients share with us an apathy towards their savings returns. Historically, our service has supported those will cash savings of £250,000 or greater. Some clients have fed back that they aren’t motivated to switch when rates are so low, and the comparative difference after fees might be a low as £3,000 or £4,000. We have educated such clients to them know of the safety benefits of spreading their capital, particularly when they are going to get a free money return of £3,000 to £4,000 for doing so. Importantly, we have also shared that at this time, when the country seeks to rebuild from the economic damage of the last 12 months, it is incredibly important for us to all do our bit, such that if £3,000 to £4,000 isn’t required by you – why not switch accounts and give the free money generated away! It would be a welcome donation by many at this time and we are excited to share some initiatives with you in the new year as we seek to do well for our clients and do good for society.

It is a pleasure meeting our clients and I’ve enjoyed supporting you all in 2020. I look forward, alongside the rest of our team, to continuing to do so in the year ahead.