Freetrade launches Cash Investments with easy access rates up to 5.33%*

Freetrade, the platform on a mission to get everyone investing, today announces the launch of Cash Investments, a collection of low-risk GBP and USD funds that give investors exposure to overnight interest rates. With rates rising in the UK and US, these are popular exchange-traded investments in which investors can park their cash for the short to medium term. These funds seek to track or outperform overnight interbank interest rates, quickly passing on changes to rates to investors. Unlike savings accounts, investors get flexibility with no fixed term or minimum lock-in period. Rates on offer are better than the savings rates held by the average* easy-access high street savings accounts. These are also ISA and SIPP eligible investments, meaning that you can shield any interest and capital gains from the taxman. Alex Campbell, Head of Communications at Freetrade, said: “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.”