Platform banking and interest rates

BANKING PARTNERS

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 Embark Platform investors centrally. There are two separate accounts. One for the Embark Personal Pension and the other for the Embark ISA, the Embark JISA, the Embark GIA and the Embark Third Party Investment Account (TPIA).

INTEREST PAID

Any Cash held in an 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. This treatment of interest by us is detailed in the Key Features and in the Charges Information Document. 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.

CURRENT INTEREST PAID

From 6 October 2023, Embark Platform are currently paying interest on cash deposits at a rate equivalent to 2.16% each year, this means that for every £100 you hold in cash we’ll pay you £2.16 in interest over a year.

This is based on the expectation that we will earn interest at a rate in the region of 4.0% – 4.25% for Q1 2024. The customer rate will be maintained at 2.16%, with the Platform retaining the balance.

The maximum amount of interest we will retain is the equivalent of 2% per year.

Start Date Customer Rate Interest Retained by Embark
6/10/2023 2.16% 1.84% – 2.09%

PREVIOUS INTEREST PAID

Date Customer Rate Interest Retained by Embark
17/07/2023 – 5/10/2023 2.0% 2.05%

ABOUT INTEREST PAID

Where interest is paid to us, each month we’ll add part of it to your Account(s) if you 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.

Interest we expect to earn Customer Rate Interest Retained by Embark
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%
4-5% 2.02% – 2.61% 1.98% – 2.39%
5%+ 2.61%+ 2.39%+

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 Embark Accounts, please do not hesitate to contact us on 0330 024 2345 or [email protected].