Managing account cash

  • Updated

1. What is Account Cash?

Account Cash refers to the uninvested money held in your InvestEngine account. It can come from:

  • Deposits you’ve made
  • Dividends received
  • Income from sales of investments

You can choose to leave it uninvested, invest it, or withdraw it.
 

2. What can I do with Account Cash?

You can:

  • Invest it into one or more portfolios (DIY or Managed)
  • Withdraw it to your linked bank account
  • Leave it uninvested in your account (note: some tax wrappers may have specific considerations)
     

3. How do I invest my Account Cash?

To invest:

  1. Go to your InvestEngine dashboard.
  2. Select the relevant portfolio.
  3. Choose “Add money” and select Account Cash as the source.
  4. Confirm your investment.

This transfers the selected amount from your Account Cash into the chosen portfolio. If you have AutoInvest switched on, you can also transfer your cash between portfolios:

  1. Open 'Cash' portfolio
  2. ‘Move cash out’
  3. Select the portfolio you want to move it to
  4. Select ‘Confirm’
     

4. Can I hold cash in my InvestEngine account?

Yes. You're not required to invest all your funds immediately. Cash can remain in your account (including within ISAs and SIPPs), although the investment strategy may differ depending on the account type.
 

5. Will I earn interest on cash in my account?

Currently, InvestEngine does not pay interest on cash held in your account or portfolio. It’s advisable to invest your cash if you're looking for potential returns.
 

6. What’s the difference between Account Cash and Portfolio Cash?

  • Account Cash is held at the overall account level and can be moved into any portfolio or withdrawn.
  • Portfolio Cash is held within a specific portfolio and can only be used for investing within that portfolio. You’ll need to move it back to Account Cash if you want to withdraw it.
     

7. Does InvestEngine offer a Cash ISA?

No. InvestEngine offers Stocks & Shares ISAs only. These accounts are designed for investing, not for holding long-term uninvested cash.
 

8. Does ISA or SIPP cash need to be invested?

No, you are not required to invest ISA or SIPP cash, but keep in mind:

  • Holding cash in a Stocks & Shares ISA doesn’t typically generate returns and still counts toward your ISA allowance.
  • SIPP cash also doesn’t earn interest, so it may be less effective over time compared to being invested.

9. Does holding cash in an ISA use up my ISA allowance?

Yes. Any cash added to your ISA (whether invested or not) uses up your annual ISA allowance. So even if the money is uninvested, it still counts.
 

10. How does holding cash affect my portfolio returns?

Holding uninvested cash can affect your time-weighted return (TWR), especially if left idle for long periods. TWR assumes money is invested and compounding, so cash drag can reduce your performance metrics.


 

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