Coutts has launched an online investment service for its clients as Isa season nears its end and inflation forecasts threaten to eat into clients’ cash holdings.
Clients, who would normally need to hold at least £1m with the private bank, can invest as little as £500 and regular contributions of £50 with a maximum charge of 0.95 per cent.
The service, Coutts Invest, provides access to five funds with varying levels of risk.
Managing director and head of financial advice and investment solutions at Coutts Mohammad Syed says rising inflation and all time low interest rates were a “troublesome combination” for investors.
“£100,000 placed five years ago in a zero interest cash account would be worth £6,500 less today in real terms. Even if it were deposited in an average high street bank instant access account, it would still be worth £2,600 less in real terms,” Syed says.
The service would be ideally suited to clients wanting a simplified version of the Coutts house view, without paying for investment advice, Syed says.
He adds that the bank has committed £20m over the next four years to build its digital and wealth management proposition.
The funds will be managed by Coutts’ team of more than 60 investment professionals, which already manages the globally oriented Tailored Portfolio Service.