The cash deposit is a small amount of cash that may be left in your Money Market Account after we place a trade. This happens because Money Market Funds can only be bought in fractional units down to a certain level (i.e. 0.01 instead of 0.001).
Here’s how it works:
When you deposit, we use as much of the deposit as possible to buy units in the Money Market Fund.
Any amount that can’t be used to buy a unit remains as cash in your account.
The cash deposit isn’t a fee reserve or a separate charge. It’s simply the leftover amount that couldn’t be invested because the fund only allows whole units to be purchased.
Example:
Let’s say you deposit £10,000. We use as much of that as possible to buy whole units in the Money Market Fund.
If the fractional units don’t divide exactly into £10,000, a small remainder is left as cash.
This cash stays in your account as the cash deposit and can be used towards future withdrawals.
The rest of your balance is held in the Money Market Fund.