Within each account we offer a cash facility. We do this by providing access to a bank account operated by our banking partner. This bank account is not unique to the account. It holds amounts of money for Scottish Widows Platform investors centrally. There are two separate bank accounts. One for the Scottish Widows Personal Pension and the other for the Scottish Widows ISA, the Scottish Widows Junior ISA, the Scottish Widows General Investment Account and the Scottish Widows Third Party Investment Account (TPIA).
Any cash held in your client’s account may be eligible for interest payments.
We retain the difference between our published interest rate and the fluctuating rates paid by banking partner(s) and therefore the rate of interest which is applied to your client’s account will be determined by us. We reserve the right to change the rate of interest we pay at any time.
Where interest is being earned, it is accrued daily by the Platform based on the rate that we define and calculated against the client’s cash holdings that day. On the first of each month, the total of these accruals for all days in the prior month is applied to the client’s account on the Platform, increasing their cash balance. The corresponding cash balance is paid into the client bank account on the same day.
If a client transfers out of their scheme mid-month, the total of interest accrued up to that day is applied to the client’s account on the Platform, increasing their cash balance. The corresponding cash balance is paid into the client bank account on the same day.
From 25 November 2024, Scottish Widows Platform are currently paying interest on cash deposits at a rate equivalent to 2.30% each year, this means that for every £100 held in cash we’ll pay £2.30 in interest over a year.
This is based on the expectation that we will earn interest at a rate in the region of 4.05% – 4.30% for Q4 2024. The customer rate will be set at 2.30%, with the Platform retaining the balance.
| Date |
Customer Rate |
Based on £100 held in Cash |
Interest Retained by SW Platform |
Based on £100 held in Cash |
| 12/06/2024 – 24/11/2024 |
2.60% |
£2.60 |
1.86% |
£1.86 |
| 25/03/2024 – 11/06/2024 |
2.46% |
£2.46 |
1.97% |
£1.97 |
| 06/10/2023 – 24/03/2024 |
2.16% |
£2.16 |
1.70% |
£1.70 |
| 17/07/2023 – 5/10/2023 |
2.0% |
£2.00 |
2.05%* |
£2.05 |
*prior to introduction of 2.00% maximum charge
Where interest is paid to us, each month we’ll add part of it to your client’s account(s) if they had a positive balance in that month. The table below shows the yearly equivalent rates of interest we expect to pay based on a range of possible yearly interest rates.
The maximum amount of interest that Scottish Widows will retain is the equivalent of 2% per year.
| Interest we expect to earn |
Customer Rate |
Interest Retained by SW Platform |
| 0-1% |
0 – 0.46% |
0 – 0.54% |
| 1-2% |
0.46% – 0.94% |
0.54% – 1.06% |
| 2-3% |
0.94% – 1.46% |
1.06% – 1.54% |
| 3-4% |
1.46% – 2.02% |
1.54% – 1.98% |
| 4%+ |
2.02%+ |
1.98% – 2.00% |
Please note customer rates are set quarterly in advance based on our best estimate of the yield we expect to earn versus the charging rate table. As part of this review cycle, we look at the actual rates generated and adjust the customer rate accordingly. As such, the historical table shows the actual amounts retained as opposed to that anticipated when set.
If you have any questions regarding our banking partners or interest paid on Scottish Widows Platform Accounts, please do not hesitate to contact us on 0330 678 2545 or email openwork@scottishwidowsplatform.co.uk.
