The rate our clients receive on cash balances held with JM Finn varies from day to day depending on the amount of funds we hold with each bank and the rate of interest we receive from them.
The amount you receive is calculated by applying the interest payable rate, then deducting the JM Finn margin which is the amount JM Finn retains. The sliding scale of the margin is detailed below.
We regularly review our margin rates against other wealth management firms to ensure that we remain competitive. Three examples are included below to demonstrate how interest is calculated.
Please note that as interest payable rates change daily, the below examples are for illustrative purposes only.
Example 1: a client balance of £10,000 in cash:
If the rate we receive from the banks is 2.4%, after the deduction of JM Finn’s margin rate of 1.75%, you would receive £65, or 0.65%.
Interest received: £10,000 x 2.4% = £240
JM Finn margin: £10,000 x 1.75% = £175
This account would receive £65 (£240 - £175).
Example 2: a client balance of £30,000
If the rate we receive from the banks is 3.4%, after the deduction of JM Finn’s margin, which for balances of £30,000 is 1.5%, you would receive £570, or interest of 1.9%.
Interest received: £30,000 x 3.4% = £1,020
JM Finn margin: £30,000 x 1.5% = £450
This account would receive £570 (£1,020 - £450).
Example 3: a client balance of £100,000
If the rate we receive from the banks is 3.8%, after the deduction of JM Finn’s margin, which for balances of £100,000 is 0.875%, you would receive £2,925, or interest of 2.93%.
Interest received: £100,000 x 3.8% = £3,800
JM Finn margin: £100,000 x 0.875% = £875
This account would receive £2,925 (£3,800 - £875).
When will interest be paid?
- Interest is paid on a quarterly basis.
- For general deposit and income accounts, interest owed will be credited on the first business day of February, May, August and November for the preceding 3 months.
- For ISAs, interest owed will be credited on the first business day of January, April, July and October for the preceding 3 months.
Are there circumstances where interest will not be paid?
- If our margin is higher than the interest payable rate, you will not receive any interest – however this will not result in negative rates.
- We do not pay interest on client balances less than £1,000 on amounts held in GBP and USD, or on less than £50,000 on amounts held in our Euro client bank account.
- Interest sums amounting to less than £5 in any quarter will not be credited to your account, paid to you or carried forward.
The current JM Finn margins are as follows:
| Band | JM Finn Margin (%p.a.) |
|---|---|
| £1,000–£4,999 | 3.000 |
| £5,000–£9,999 | 2.500 |
| £10,000–£14,999 | 1.750 |
| £15,000–£49,999 | 1.500 |
| £50,000–£99,999 | 1.125 |
| £100,000–£149,999 | 0.875 |
| £150,000–£249,999 | 0.625 |
| £250,000 + | 0.375 |
Notes:
- Occasionally we are charged negative interest for holding some foreign currencies. Where this occurs we may pass on this charge to you. We will tell you if this happens.
- The way in which we pay or charge interest on client accounts may alter from time to time. We will give you not less than 30 days’ written notice of any alteration.
- We currently only pay interest on client cash balances that are held in British pounds, US dollars and Euros.
Other JM Finn Charges
Charges are subject to VAT where applicable
Any local duties or third party charges on transactions will be passed on; for example:
- Stamp duty on purchases of UK equities: 0.5%
- Panel on Takeover and Mergers levy (transactions over £10,000 only): £1.50
Incidental Charges
- CHAPS Payments: £20 per payment (we will not make CHAPS payments of less than £1,000)
- Certificated transactions: £25 per transaction
- Transfers out of JM Finn nominee: £25 per line of stock plus stamp duty, where applicable.