The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

Saxo
Saxo has introduced a new interest rate model that allows clients to earn interest income on their uninvested cash with no lock-in period or upper limit on the amount paid.

With this interest rate model, the interest rate on clients’ deposits is updated daily, based on the Sterling Overnight Interbank Average Rate benchmark rate, which means that adjustments to central bank policy are reflected accordingly. Saxo said its clients will see their deposit interest rate increase when the Bank of England raises its interest rate.

The deposit interest rate for retail investors has historically lagged behind market rates, but the firm said that is now a thing of the past. “With this new interest model, Saxo’s clients get a more dynamic and transparent model that follows the market developments every single day,” the firm added in a statement. Saxo clients can use the interactive interest calculator to estimate the total interest received on their uninvested cash depending on their deposit amount and currency.

Charles White-Thomson, CEO at Saxo UK, said: “We are pleased to be able to bring this new competitive and transparent cash interest rate model to our clients. In volatile markets there is a place for cash and this move will ensure our clients receive interest on this part of their portfolio.”

“This is particularly relevant following the recent interest rate hikes by the Bank of England,” he added. Saxo UK is a subsidiary of Danish investment bank Saxo.