Member Article

FSCS changes mean savings aren’t as protected

January is no time to rest on your financial laurels if you have a lot of cash stashed away in savings, warns an industry-leading UK cash management service.

New rules took effect this week that severely weaken the safety net from the Financial Services Compensation Scheme (FSCS) for savers with more than £75,000 tied up with one financial institution.

Kirsty Grainger, operations manager at Dynamic Cash Management, said: “The number one new year’s resolution for Independent Financial Advisers (IFAs) and their clients right now should be to check whether you are still going to be adequately protected if a bank goes bust.

“Since 2001, the FSCS has paid out over £26bn to more than 4.5 million customers – so it’s clear that any erosion of the protection they give to customers could have a huge impact.

“What’s more, when savers have money tucked away in a savings account there’s a huge temptation to leave it there without checking whether or not they’re still getting the best deal as circumstances change – and in our experience, they won’t be.”

Dynamic Cash Management is an innovative, whole of market cash management service provided by independent financial planning and investment management firm, Gale and Phillipson Ltd.

Kirsty said: “Our biggest tip for those looking to boost their savings in 2016 is to keep your money on the move. Monitor rates weekly and move your money frequently. It sounds time consuming, but there are services out there that can do this for you – whether you’re a private client, or an IFA working on behalf of your clients.”

As well as offering services to private clients, Dynamic Cash Management’s online portal can be used to support IFAs. The service selects the most suitable cash investments by actively monitoring the performance of savings accounts at more than 165 institutions. The service is more cost effective for clients investing over £70,000, whereby balances are switched when rates change and new opportunities arise, with all paperwork arranged on the client’s behalf.

Andrew Featherstone, new business manager at Dynamic Cash Management, said: “Our service can add value to the services offered by IFAs and professional introducers, allowing them to offer clients a personal, responsive service with an up to date breakdown of investments, 24 hours a day, through any desktop, laptop, tablet or smartphone.

“Decisions about moving money are made only after we’ve taken time to understand a client’s needs, attitude to risk and liquidity. We don’t believe that the process of understanding should be rushed, so for professional introducers our service is a time-saver, easing the administrative burden and giving peace of mind that their clients’ cash is providing the maximum return for minimal effort.

“Introducers can also submit new cases directly through the portal, cutting down on paperwork and speeding up the application process. This is all contained in a user friendly, secured site.”

For further information on Dynamic Cash Management, visit the free-to-use illustration tool and online portal at www.dcmcash.com or email DCM@DCMCash.com

This was posted in Bdaily's Members' News section by Gale and Phillipson .