Earn Interest on Uninvested Cash
MAS Markets have partnered with one of the largest investment firms in the world to offer our clients interest on uninvested cash balances held.
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Daily Interest Accrued
(Paid Monthly)
Tier 1
Investment Firm
USD, GBP, EUR
based
Lock-in Period
Interest Paid on
Allocated Cash Balances
Minimum Cash Balance: $250,000 or currency equivalent. Interest rates as of 5th November 2024.These rates are subject to change, based on central bank policy
Case Study
A Family Office Optimizing
Uninvested Cash with MAS Markets
A multi-generational family office, which manages a portfolio encompassing real estate, private equity, and public markets, traditionally held a significant portion of its assets in cash. This allocation ensured the flexibility to respond quickly to investment opportunities and to cover ongoing family obligations. However, the family office sought a solution that would allow it to earn a competitive yield on uninvested cash while maintaining immediate access to funds in multiple currencies.
1. Low or Negligible Returns on Idle Cash
The family office’s conventional banking arrangements provided very low interest rates on large cash balances, eroding potential returns.
2. Immediate Liquidity Requirement
The family office needed on-demand access to cash in GBP, USD, and EUR to fund investments or settle unexpected expenses without incurring penalties or lock-in periods.
3. Simplified Administration and Reporting
With operations spanning multiple jurisdictions and currencies, the family office sought a streamlined approach to cash management, reporting, and interest calculations.
MAS Markets Offering
The family office opted for MAS Markets solution. The solution addressed all key requirements:
1. Attractive Interest Rates for Uninvested Cash
- Tiered interest rates ranging from 2.65% to 3.65% for GBP and USD, and 1.60% to 2.35% for EUR, depending on the size of the balances.
- Instant fund access, allowing rapid transfers back to the family office trading account or to an external bank account.
2. Ease of Use & Transparency
- A dedicated Relationship Manager provided guidance on multi-currency cash allocations.
- An online portal offered real-time visibility into balances, interest accruals, and overall activity.
- Clear monthly statements simplified performance tracking and decision-making.
Assessing Liquidity Needs
In collaboration with the Relationship Manager at MAS Markets, the family office reviewed upcoming obligations—ranging from potential real estate acquisitions to private equity capital calls—to determine the amount of cash that could remain in interest-bearing accounts.
Allocating Balances
Funds were split across MAS Markets accounts in three currencies (GBP, EUR, and USD) based on the family office’s anticipated spending and investment timelines. Example allocations included:
- GBP Account: Ranging in the £500,000 – £999,999 tier, yielding 3.15% annually.
- USD Account: Maintained at the $1,000,000 – $4,999,999 tier, earning 3.65% annually.
- EUR Account: Within the €250,000 – €499,999 tier, generating 1.60% annually.
Monitoring & Ongoing Adjustments
The family office regularly reviewed cash positions through the MAS Markets platform to ensure sufficient liquidity for potential deals.
When an investment opportunity arose, the necessary amount was transferred instantly from the interest-bearing account to the trading or external bank account.
Surplus liquidity, such as proceeds from a divestment, was returned to the high-yield accounts to maximize returns.
1. Significant Increase in Cash Yield
By switching to MAS Markets’ cash management solution, the family office generated a consistent return on previously idle cash. Over a 12-month period, a USD balance of $2 million at 3.65% interest, for instance, could yield an estimated $73,000 in interest.
2. Retained Liquidity
Funds remained fully accessible with no lock-in constraints, allowing the family office to pivot quickly toward new investments or cover urgent expenditures.
3. Administrative Simplicity
With all currency balances under one platform and clear monthly statements, the family office reduced the time spent on reconciling accounts and tracking interest across multiple banking relationships.
4. Enhanced Strategic Flexibility
The ability to generate returns on cash—without forgoing immediate availability—improved the overall efficiency of the family office’s portfolio strategy.