Cater Allen Bank, part of Santander UK, has launched an account aimed at meeting the cash management needs of intermediaries and their clients, with the Retail Distribution Review from 1 January 2013 in mind.

The Cash Hub Account is a transactional cash account intended to facilitate the central collection of monies from maturities, disinvestments and dividends, as well as additional income and any surplus funds held in other accounts.

Linked to a range of notice accounts and term deposits, the account hopes to allow the best possible returns on the cash element of clients’ portfolios, while continuing to provide the level of liquidity and access required by the client.

It can also be used to facilitate the transparent payment of advice fees, in line with the agreement between advisor and client.

The account’s online functionality provides 24/7 visibility of the cash element of the client’s portfolio and there is no monthly charge nor transactional fees. A deposit of £2,500 ($4,000) is required to open the account but there is then no requirement for a minimum balance.