Cash deposit investment

Important information if you want to withdraw your term deposit before it matures you’ll need to give us 31 days' notice.

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CASH DEPOSIT ACCOUNT, cash deposit investment.

You may incur a prepayment interest adjustment and administration fee.

CASH DEPOSIT ACCOUNT

A choice of investment alternatives within one account with competitive interest rates.

To apply, call 13 15 23 or speak to your relationship manager.

About the cash deposit account

Features

A cash deposit account is the all in one investment solution which gives you a choice of investment alternatives within the one account.

Your money can be invested in any combination of terms or at call, all attracting competitive interest rates.

Invest in a combination of at-call or fixed terms

Choose the term of your deposit, from overnight to five years

No account-keeping fees (standard government fees may apply)

Make most transactions over the phone or through commbiz markets

Your business banker will work in partnership with you to design a comprehensive working capital solution customised for your organisation.

Choose your options

Fixed term deposit account

Earn competitive fixed interest rates for a term you nominate

Minimum initial and ongoing deposit of $50,000

Terms from seven days to five years

Interest is calculated daily and paid monthly, quarterly, semi-annually or at maturity (for terms up to one year)

On the maturity date of your fixed term deposit, unless you have provided instructions to withdraw all or part of your fixed term deposit at maturity, the bank will automatically reinvest your funds as an at call deposit within your CDA.

At call deposit account

Earn a variable interest rate while your money is readily available

Minimum initial deposit of $50,000

Minimum balance of $10,000

Minimum transaction of $5,000 applies

Interest is calculated daily and paid monthly or quarterly

Withdrawals and deposits are made by phoning your relationship manager, visiting a branch of the bank, or by phoning 13 15 23 monday to friday, 8:00am to 4:30pm sydney time.

Standard variable interest rate on at call deposits

This is the standard interest rate applicable on CDA at call. For further information on how interest rates are determined, refer to the CDA terms and conditions.

Details of current interest rates are available on request from your relationship manager, any branch of the bank or by phoning 13 15 23 monday to friday, 8:00am to 4:30pm sydney time.

Fees & charges

There are no set up or establishment fees.

If you want to withdraw your term deposit before it matures you’ll need to give us 31 days' notice. You may incur a prepayment interest adjustment and administration fee.

Talk to us

Call 13 1998 at any time

Talk to your local business banker

Your questions answered

Important information

1 these rates are current as at 27 march 2020, but are subject to change at the bank’s discretion.

This information has been prepared without considering your objectives, financial situation or needs. Before acting on this information, please consider its appropriateness to your circumstances. Cash deposit account is issued by the commonwealth bank of australia. View our financial services guide (PDF 59kb).

View terms and conditions for cash deposit account (PDF 619kb) and consider them before making a decision about this product.

Manage your cash investments

We have several options for your short-term investment needs.

Why invest in cash?

Cash investments are very short-term reserves that seek to preserve your savings.

They can be a great choice if you're still deciding how to invest your money or if you'll need to spend it within the next 3–6 months.

Our cash offerings

If you're looking for a cash investment, we have several products to help you reach your goals.

Vanguard money market mutual funds

Our money market funds seek to maintain a stable $1 share price. These funds are highly liquid and flexible. You can quickly transfer money between your bank account and money market account. And, unlike certificates of deposit (cds), you won't be subject to penalties for withdrawing your money early.

We offer 3 taxable and 3 tax-exempt money market funds.

When you buy a CD, you invest money with an issuer, typically a bank, for a set period of time. The issuer promises to repay you, plus interest, at a specified interest rate when that time frame is up, known as the "maturity date."

The money you invest in cds, up to $250,000, is safe because it's insured by the federal government through FDIC insurance, unlike money market funds. However, if you need your cash back before the CD matures, you'll pay an interest penalty. Cds bought through a vanguard brokerage account can be sold before maturity, but may be subject to gains or losses.

More information about money market funds

See the table below to compare our money market funds.

VANGUARD CASH RESERVES FEDERAL MONEY MARKET FUND*

VANGUARD FEDERAL MONEY MARKET FUND

VANGUARD TREASURY MONEY MARKET FUND

VANGUARD MUNICIPAL MONEY MARKET FUNDS

Strategy

This fund invests primarily in securities issued by the U.S. Government or its agencies, as well as repurchase agreements with collateral backing of U.S. Treasuries or to a lesser extent mortgage-backed securities.

This fund primarily invests in U.S. Treasury bills. It's considered one of our most conservative money market funds.

These funds invest in a range of short-term, high-quality, tax-exempt securities. State-specific funds are designed for residents of those states and can provide additional tax benefits depending on investors' tax brackets.

Average 7-day yield (as of september 30, 2020)**

Admiral™ shares: 0.13%, which outperformed 96% of the fund's peer group in the previous quarter.

Investor shares: 0.07%, which outperformed 90% of the fund's peer group in the previous quarter.

0.09%, which outperformed 94% of the fund's peer group in the previous quarter.

0.05%–0.13%, based on fund choice, which outperformed 89%–98% of the funds' peer groups in the previous quarter.

Expense ratio (as of june 30, 2020)***

Admiral shares: 0.10%, which is 60% lower than the industry average.

Investor shares: 0.16%, which is 36% lower than the industry average.

0.11%, which is 56% lower than the industry average.

0.09%, which is 64% lower than the industry average.

0.15%–0.16%, based on fund choice, which is 40%–44% lower than the industry average.

Minimum initial investment

$3,000 (no minimum if you're using the fund as your brokerage settlement fund )

Account type

This fund can be held in a vanguard mutual fund account or vanguard brokerage account.

It's the only vanguard money market fund that's available as a brokerage settlement fund.

This fund can be held in a vanguard mutual fund account or vanguard brokerage account.

Who can invest

Vanguard cash reserves federal money market fund † is available to all investors, including institutions.

Vanguard federal money market fund † is available to all investors, including institutions.

Vanguard treasury money market fund † is available to all investors, including institutions.

Offer checkwriting

Other considerations

More information about cds

If you're thinking about buying a CD, there are a few important things to know:

Yields are based on the maturity dates of the cds.

Cds have a $1,000 minimum initial investment.

You must buy cds in your vanguard brokerage account, but there's no commission for new CD issues. See our commission schedule

Cds sold before maturity through a broker may be subject to gains or losses.

Interest doesn't compound at vanguard and is calculated on a simple basis. That means that you'll receive the percentage amount of interest each year that's stated on the CD (coupon or interest rate) multiplied by the principal amount you own. Vanguard's rates are simple rates, and the interest is paid back to your brokerage settlement fund. That interest will then earn interest in your money market brokerage settlement fund.

GET IN-DEPTH EDUCATION

REFERENCE CONTENT

See how easy it is to place a CD trade online

Read the transcript

If you want to invest in new issue certificates of deposit—also known as cds—consider buying them through vanguard brokerage instead of shopping at various banks.

Through vanguard brokerage services, you can shop for cds from banks across the country, giving you a wide range of options and competitive rates. Plus, you'll have the convenience of holding all your investments, including cds, in one account.

We making buying cds through our website easy.

Start by logging on to your account at vanguard.Com and navigating to the brokerage account you want to buy a CD in. Then, click "trade bonds or cds" from the "buy and sell" dropdown menu for your brokerage holdings.

On the "find cds and bonds" screen, you can choose from a wide range of maturities from 1 month to 10 years. The rates you see are the highest rates available for that specific maturity.

Click the percentage rate under your desired maturity to see our list of cds for that term.

On the next screen, you'll see several cds sorted by interest rate, with the highest rate at the top of the list.

Click the bank name, or "buy" link, to see details for that CD.

You'll then see a full product description, including the CD's maturity, issuing bank, coupon dates, and payment frequency. For more information on cds, or the terms used on this page, click "glossary" or "learn more about certificates of deposits."

If you're ready to invest, click "buy" on the upper-right side of the screen.

On the "buy order" screen, review your order information and read and agree to the terms in the shaded box.

Next, enter the quantity of cds you'd like to buy. Keep in mind that new issue cds are sold in $1,000 increments. Therefore, if you buy 10 cds, you're investing $10,000, which is the vanguard brokerage minimum purchase for cds.

If you're investing more than $250,000 in cds, consider buying cds from multiple banks. Since each bank carries FDIC insurance, you can get up to $250,000 in coverage at each bank you buy a CD from.

Click "calculate" to update your order details. If you're ready to proceed, click "continue."

Finally, you'll see a summary of your order information on the "review and submit" screen. It's important to ensure that all the information is correct and you've read and understand all the important information on the page before you submit your order.

That's it. You've placed your order. You'll see your order number on the "order summary" screen.

You can check on your purchase in the "order status" area of the website. Your order is complete when it's "executed."

You will own, and pay for, your cds on the settlement date.

If you need help buying a CD or building a CD ladder, just call a vanguard brokerage specialist at 800-669-0514. Thank you for investing with us.

Important information:

All investing is subject to risk, including the possible loss of the money you invest.

All cds are federally insured up to $250,000 per depositor per bank. For additional details regarding coverage eligibility, visit fdic.Gov

Vanguard brokerage services (VBS) has provided availability to the alternative trading systems operated by tradeweb markets LLC ("tradeweb") and to other content provided by tradeweb. Tradeweb provides access to certain municipal bond information from DPC data. Tradeweb and DPC data are third parties and are not affiliated with VBS. While VBS provides access to tradeweb's alternative trading systems, VBS has no control over actions taken by tradeweb.

Vanguard funds not held in a brokerage account are held by the vanguard group, inc., and aren't protected by SIPC.

Brokerage assets are held by vanguard brokerage services, a division of vanguard marketing corporation (VMC), member FINRA and SIPC.

Footnote * effective september 29, 2020, vanguard cash reserves federal money market fund changed its name and investment strategy. The information for the periods prior to september 29, 2020, is based on the investment strategy utilized by the fund prior to september 29, 2020, under the name vanguard prime money market fund. Also effective september 29, 2020, the investor share class is closed to new investors. Investor shares will remain open for additional purchases by current shareholders until all investor shares are converted to admiral shares and the investor share class is closed.

Footnote ** for the period ending september 30, 2020, vanguard cash reserves federal money market fund outperformed 548 of 569 of its lipper peer-group funds for admiral shares and 512 of 569 of its lipper peer-group funds for investor shares. Vanguard federal money market fund outperformed 536 of 569 of its lipper peer-group funds, vanguard treasury money market fund outperformed 533 of 569 of its lipper peer-group funds, vanguard municipal money market fund outperformed 206 of 211 of its lipper peer-group funds, vanguard california municipal money market fund outperformed 187 of 211 of its lipper peer-group funds, and vanguard new york municipal money market fund outperformed 197 of 211 of its lipper peer-group funds. Yield comparison results will vary for other time periods. Sources: vanguard and lipper, a thomson reuters company. Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For the most recent performance, visit vanguard.Com/performance.

Footnote *** all averages are asset-weighted. Industry averages exclude vanguard. Sources: vanguard and morningstar, inc., as of june 30, 2020.

Footnote † you could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the federal deposit insurance corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Footnote †† the fund is only available to retail investors (natural persons). You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the federal deposit insurance corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Bank deposits and cds are guaranteed (within limits) as to principal and interest by an agency of the federal government.

All investing is subject to risk, including the possible loss of the money you invest.

Cash deposit bank journal entry

A business normally maintains a separate account in its general ledger for a specific named bank account. The bank account is usually a checking account or current account with a financial institution and is used in day to day trading to make withdrawals and deposits. A cash deposit bank journal entry is required when a business takes cash and deposits it into the bank account using a paying in slip.

The bank account is a current asset and is included under the heading of cash and cash equivalents in the balance sheet of the business.

Bank deposit journal entry example

Suppose for example a retail business has made cash sales to customers amounting to 900. At the end of the trading day the business completes a paying in slip and deposits the amount at the local branch of its bank.

The accounting records will show the following bookkeeping entries to reflect the cash deposit bank journal entry.

Cash deposit bank journal entry explained

Debit: the cash is deposited at the bank increasing the balance in the bank account.

Credit: physical cash held by the business reduces when deposited at the bank.

The accounting equation

The accounting equation, assets = liabilities + equity means that the total assets of the business are always equal to the total liabilities plus the equity of the business. This is true at any time and applies to each transaction.

For this transaction the accounting equation is shown in the following table.

In this case an asset (the bank account balance) increases; this increase is balanced by a corresponding decrease in another asset (physical cash held by the business).

Popular double entry bookkeeping examples

This cash deposit in bank journal entry is one of many bookkeeping entries used in accounting, discover another at the links below.

Accrued revenue accounting

Bad debt recovery – allowance method

Paid cash on account journal entry

About the author

Chartered accountant michael brown is the founder and CEO of double entry bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with deloitte, a big 4 accountancy firm, and holds a degree from loughborough university.

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* interest rates shown are gross and do not include flagstone's management fee, which is 0.15%-0.25% depending on account size.

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FSCS protection

All our UK bank savings accounts are covered

If you hold money with a UK-authorised bank, building society or credit union that fails, FSCS will automatically compensate you. All our UK bank savings accounts are covered

Up to £85,000 per eligible person, per bank, building society or credit union.

Up to £170,000 for joint accounts.

Cash investment

What is a cash investment?

A cash investment is a short-term obligation, usually fewer than 90 days, that provides a return in the form of interest payments. Cash investments generally offer a low return compared to other investments. They may also have very low levels of risk, in addition to being insured by the federal deposit insurance corporation (FDIC).

A cash investment also refers to an individual’s or business's direct financial contribution to a venture, as opposed to borrowed money.

Key takeaways

A cash investment is a short-term obligation, usually fewer than 90 days, that provides a return in the form of interest payments.

Investors that are looking for a safe investment and looking to preserve their capital will opt for secure investment vehicles, such as cash investments.

Cash investments are usually undertaken by investors who need a temporary place to keep their cash while researching other investment products.

Money market accounts (mmas) and certificates of deposit (cds) are examples of cash investments.

Understanding cash investments

Investors that are looking for a safe investment and looking to preserve their capital will opt for secure investment vehicles, such as cash investments. Money market accounts (mmas) and certificates of deposit (cds) are examples of cash investments. The choice of which of these cash investments that you opt for depends on whether the investor wants to lock in a certain yield or you require FDIC insurance.

Cash investments are usually undertaken by investors who need a temporary place to keep their cash while researching other investment products. Investors benefit from the low-risk yield and high liquidity of cash investments. Although interest rates are low and a favorable interest rate can only be locked in temporarily, an investor can have access to their money within a short period of time.

In the credit industry, lenders typically require borrowers to have “skin in the game,” especially for large loans. In real estate, for example, a property buyer who takes out a mortgage is expected to make a cash investment in the form of a down payment. The borrower's cash investment lowers the lender's risk since the borrower will have something of his own to lose if he defaults on the mortgage. If the borrower's cash investment is less than 20%, the lender will require the borrower to purchase private mortgage insurance (PMI) to protect the lender's interests.

Types of cash investments

Savings account

Some people consider a savings account as an investment alternative for cash. Money held in the account is insured by the FDIC. However, the interest rate on these accounts is minimal. The average interest return on a savings account is only 0.09%. Investors that want the option to access their money any time—but also require a slightly higher rate of return—typically will put their cash in a high yield savings account, offered through local banks.

Money market

This is a very short-term security that usually has a maturity of fewer than six months. They are very liquid investments that pay variable interest rates. Money market accounts generally have a slightly higher interest rate return than a cash savings account. Examples of money market instruments include commercial paper and treasury bills.

Certificate of deposit (CD)

A CD functions like a bond in that it makes periodic interest payments to investors and funds are held for a predetermined period of time. But unlike bonds that can be sold prior to the maturity date, funds in a CD are locked in if held with a bank. Withdrawing the money will incur a penalty, however, this is not the case for cds held with a brokerage which permits selling on the secondary markets prior to maturity. The funds in a CD vehicle are insured by the FDIC up to $100,000.

Cash deposit accounts

In a volatile market, or as you approach a life stage where you want to focus on protecting your capital, cash deposit accounts can be a great low risk investment to achieve a level of growth to protect against the impact of inflation.

We have used our financial strength to negotiate competitive rates specifically for our investors in order to offer highly competitive accounts from leading banks.

Term deposit protection by the
financial services compensation scheme (FSCS)

Investments

All cash deposit accounts are covered by the financial services compensation scheme’s (FSCS) deposit protection, which is currently up to a maximum of £85,000. The level of protection can be subject to change and you can read more about the FSCS deposit protection here. The protection is by deposit taker (bank) rather than deposit, so for example, if you had two fixed rate deposit accounts with bank A for £50,000 (£100,000 in total), your cover is still £85,000 maximum.

The protection is based on you as an individual even though the trustee is the legal owner of the assets in your SIPP. So if you hold money personally with a bank then that will be included in the £85,000 limit. For example, if you hold £10,000 personally with bank A and £80,000 with bank A through us, your total FSCS protection in the event of the failure of bank A would be restricted to £85,000 overall.

1. The cash panel deposit accounts are only available for SIPP products administered by james hay where james hay pension trustees limited are acting as sole trustee.

2. The interest rate applied will be the prevailing rate on the day that the money is deposited into the account. This is likely to be 2 to 5 business days after receipt of the application form by james hay partnership.

Indicative rates available to james hay partnership clients:

The rates shown are current and effective from 01 february 2021.