Fundment launches Cash ISA and Cash Lifetime ISA backed by full digital cash management

Fundment, the innovative adviser platform, has launched a Cash ISA and Cash Lifetime ISA, backed by a fully digital cash investment system.

This follows the July launch of the Fundment Stocks & Shares Lifetime ISA (LISA) and addresses growing adviser and client demand for cash options.

New Cash ISA and Cash Lifetime ISA

Fundment has partnered with Investec Bank to offer a 12-month Fixed Rate Deposit (FRD) within its Cash ISA and Cash Lifetime ISA options, with plans to expand cash investment choices in the future.

“We’re expanding our ISA range in line with adviser demand,” said Ola Abdul, founder and CEO of Fundment.

“This move, coupled with the full digitisation of our underlying cash investment functionality, demonstrates our commitment to providing advisers with the tools they need to serve their clients effectively.”

Digitised Cash Investment Functionality

The platform has also fully digitised its cash investment process, streamlining operations for advisers.

From digital account opening and client approval to automated payments of fees, income, and dividends, the process is intuitive and designed to save time, allowing advisers to focus on delivering value to their clients.

David Hunt, Head of Funding Partnerships at Investec, said: “Our collaboration with Fundment aligns perfectly with our commitment to tech-driven, digitally-enabled financial solutions.

“By leveraging our API, Fundment has created a frictionless experience for advisers and their clients.”

Beyond the 12-month FRD in Cash ISAs and Cash LISAs, Fundment offers Fixed Term Deposits (FTDs) within pension and general investment wrappers. These Investec Bank products are available in 3, 6, 12, and 24-month terms.

Factbox: Cash ISAs and Cash Lifetime ISAs

• Cash ISA allowance: For the 2024/25 tax year, the maximum that can be contributed to a Cash ISA is £20,000, with tax-free interest.
• Cash LISA limit: Contributions up to £4,000 are permitted into a Cash Lifetime ISA (LISA), with a government bonus of 25% (or up to £1,000 annually).
• Eligibility: The Fundment Cash ISA is available from age 18, while the Cash LISA is for those aged 18-39.
• Withdrawals: Many Cash ISAs allow flexible withdrawals, but early withdrawals from a Cash LISA (for non-home buying reasons before age 60) incur a 25% penalty.
• First-time buyers: Cash LISA funds can be used penalty-free for a first home purchase under £450,000.
• Transfer & limits: You can transfer ISAs between providers without losing your allowance, but you can currently only open and fund one Cash LISA per tax year. However, following changes enacted in April 2024, it is possible to open more than one Cash ISA in the same tax year.