We actively manage the cash you hold with us to ensure you benefit from competitive interest rates. We credit some interest to your accounts whilst retaining a portion to continually invest in improving the products we offer and our service.
Our aim is to deliver excellent financial outcomes, to help make your retirement more rewarding.
The table below shows a breakdown of the interest earned over time, along with what we’ve applied to your accounts for pounds sterling.
The amount of interest we share with you is determined by the annualised rate of interest we earn as a group. We update this table each month.
Interest shared from January 2026 onwards (GBP)
Month | Interest rate earned | Interest rate shared |
|---|---|---|
| February 2026 | 4.18% | 2.04% |
January 2026 | 4.21% | 2.06% |
Note: The calculation used to determine the amount of cash interest we share changed in January 2026. The figures in the above table use the calculation in place at the time. Please note, the rate of interest shared from January 2026 onwards is based on the rate of interest earned two months prior.
You can view historical rates below.
Historic Interest Rates | |
|---|---|
| Date of rate change | Interest rate shared |
| 15 August 2025 | 2.00% |
| 1 June 2025 | 2.25% |
| 15 February 2025 | 2.50% |
| 1 September 2024 | 2.75% |
| 1 April 2024 | 3.00% |
| 10 August 2023 | 2.80% |
| 1 July 2023 | 2.55% |
| 15 May 2023 | 2.05% |
| 1 April 2023 | 1.80% |
| 10 February 2023 | 1.55% |
| 28 December 2022 | 1.30% |
| 14 November 2022 | 1.05% |
| 1 October 2022 | 0.65% |
| 15 August 2022 | 0.40% |
| 1 July 2022 | 0.15% |
Interest shared (USD)
The interest shared for USD is 1.75% per annum, paid half-yearly and this accrues daily.
Date of rate change | % Interest shared |
|---|---|
15 February 2025 | 1.75% |
1 September 2023 | 2.50% |
For all other currencies, no interest is shared.
Cash alternative investment
Where suitable for a client’s investment strategies, we also offer longer term cash solutions, for example we can custody money market funds and certificates of deposit for those seeking a potentially higher return. Cash held with us should be for investment purposes only.
About the banks we use
We only use banks which are authorised by the Prudential Regulation Authority, regulated by the Financial Conduct Authority and Prudential Regulation Authority, and are covered by the Financial Services Compensation Scheme (FSCS). More details on financial protection can be found at fscs.org.uk.
Each bank must:
- Have a UK banking licence
- Be authorised by the Prudential Regulation Authority
- Be regulated by the Financial Conduct Authority and the Prudential Regulation Authority
- Be rated by leading ratings agencies in the ‘BBB’ category or higher
We regularly review all our banking partners to ensure we only work with those with excellent credentials. Alongside credit ratings, we look at a wide range of information, from financial performance to feedback gathered through media monitoring and service reviews. We also take into account each bank’s approach to environmental, social and governance (ESG) to ensure they align with our own values.
Commonly asked questions and answers
How is my money protected?
The Financial Services Compensation Scheme (FSCS) protection limit (currently £120,000) applies separately to each bank we use, to protect your money in the unlikely event of the failure of the bank. This limit also includes the money you have in any personal or joint accounts held with banks outside of Third Financial.
How will cash be spread across different bank accounts (where applicable)?
The Financial Services Compensation Scheme (FSCS) protection limit (up to £120,000 per eligible person) applies separately to each bank we use and was set up to help protect your money in the unlikely event of the failure of the bank.
What are the minimum requirements for banks?
We only use banks which are authorised by the Prudential Regulation Authority, regulated by the Financial Conduct Authority and Prudential Regulation Authority, and are covered by the Financial Services Compensation Scheme (FSCS). We regularly review all our banking partners to ensure we only work with those with excellent credentials and set appropriate thresholds and minimums as part of our treasury process.
How will the pro rating of any shortfall in funding be applied in the unlikely event of one of the banks’ failure?
If a bank is unable to pay us back all of the money we hold with them on your behalf (i.e. there is a shortfall) we share that shortfall across all of the clients for whom we are holding money with that bank.
For example, if 10% of our pooled cash was held with a bank which failed, and they could only repay half of this amount, then you might have a potential shortfall of 5% of your cash balance.
If the shortfall is less than £120,000 per customer, the FSCS may be able to cover the shortfall amount for eligible persons. Further details on eligibility can be found here.
Can the cash I hold with you be used as an investment?
Cash should be held in the cash account for short periods of time, while investments are being made or withdrawals and fees are being paid, and so it’s not considered to be a long-term investment option.
Should a minimum cash balance be maintained?
There is no minimum required balance that needs to be held.