Guide to cash management

  • Explain how bank accounts are protected in the event of failure
  • Describe how cash management systems work
  • Identify FCA concerns about cash
Guide to cash management
Pexels/Timo Miroshnichenko


Cash does little for its owner when it is sitting in a High Street bank’s deposit account.

But the flexibility and versatility of cash as an asset is valued by advisers for the many different ways it can help clients achieve their goals.  

It is not only useful for the mundane, such as a source of emergency money, for whatever clients suddenly need it for, or as a ‘float’ to pay fees and charges. Cash also provides some peace of mind in an investment portfolio during periods of volatility.  

And for those clients who are attached to cash and like to keep a considerable amount of it where they can access it easily, there are options. Cash management platforms can allow them to open multiple accounts, potentially earn higher rates of interest and be protected by the Financial Services Compensation Scheme too. 

This guide explores the various uses of, and the impact of the current economic backdrop on, cash.

It comes with 60 minutes of CPD.  

In this guide


Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. In section 2, why might people choose to save their cash with NS&I rather than with a High Street bank?

  2. In section 1, what should people do before adding to investments, according to Ross Leckridge?

  3. In section 1, what does Alex Shields suggest people can use spare cash for, if they do not need it for themselves?

  4. In section 3, what is one of the possible reasons behind recent savings rate increases, according to Anna Bowes?

  5. In section 4, what is the FCA's concern around investment harm, with regard to cash?

  6. In section 3, what does Scott Gallacher say is the main drawback to using cash management systems?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain how bank accounts are protected in the event of failure
  • Describe how cash management systems work
  • Identify FCA concerns about cash

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