Freetrade launches Cash Investments: Rates as high as 5.33%
The Cash Investments collection features a range of tickers, each tracking or aspiring to outperform their respective benchmark rates. This selection caters to both conservative investors seeking shelter from market volatility and those aiming for higher returns in a low-risk environment.
Freetrade, renowned for democratizing investment, unveils its latest offering: Cash Investments. This novel venture introduces a series of GBP and USD exchange-traded funds (ETFs) designed to mirror or surpass overnight interbank interest rates.
With this launch, Freetrade reaffirms its commitment to making high-value investing accessible to all. Rates go up to 5.33%.
ETFs available in GBP and USD
The global financial market has been a turbulent space with fluctuating interest rates and stock market volatility. In this climate, Freetrade’s Cash Investments emerge as a beacon of stability and potential high yield. These ETFs, available in both GBP and USD, offer investors a haven to park funds, balancing the scales between risk and return.
What sets these funds apart is their ability to adapt to changing interest rates rapidly, directly benefiting investors. Unlike traditional savings accounts with rigid terms and often underwhelming returns, Freetrade’s Cash Investments boast superior rates, trumping the average easy-access savings accounts.
Furthermore, these funds are compatible with Individual Savings Accounts (ISAs) and Self-Invested Personal Pensions (SIPPs), offering tax efficiency on interest and capital gains.
“Cash or cash-like investments are increasingly looking like a sensible place”
Alex Campbell, Head of Communications at Freetrade, emphasizes the strategic advantage of these funds: “With rising rates and volatile stock markets, cash or cash-like investments are increasingly looking like a sensible place for investors to park their cash. If a very low-risk fund can be expected to generate a return over 5% over that period, investors can sit back and offset inflationary headwinds while they wait for investment opportunities to emerge.
“These funds offer investors greater flexibility than savings accounts and returns that track overnight lending rates, not the whims of banks. Unlike savings accounts, these ETFs can be bought and sold during market opening hours, their returns track the latest benchmark rates set by central banks, and they can be held with cash already inside a tax wrapper.”
This approach contrasts with conventional savings accounts, which are often limited by bank-dictated rates and rigid terms. Freetrade’s ETFs, however, can be traded during market hours, ensuring liquidity and flexibility. Their performance is linked to central bank benchmark rates, ensuring that returns reflect the latest economic shifts.
The Cash Investments collection features a range of tickers, each tracking or aspiring to outperform their respective benchmark rates. This selection caters to both conservative investors seeking shelter from market volatility and those aiming for higher returns in a low-risk environment.