How can an Investment Account be Safer than Bank Deposits?

CashWise helps clients keep the majority of their cash in investment accounts. We believe that the structure of investment accounts are a superior alternative to bank deposits for the following reasons:

  1. Investment assets are held by a custodian - under 2 layers of financial regulations, one for the investment company and secondly the custodian

  2. Assets are bankruptcy remote meaning that they isolated on the balance sheet from the company assets therefore won’t be subject to settlement calculations

  3. While the structure of asset holding is very safe, Custodians have significant insurance and professional indemnity to cover potential liabilities in handling of client assets. 


Lastly, while all investment accounts require account holders to sign waivers on risk, the risk is primarily dependent on the assets that are invested into.  For the majority of CashWise clients, money markets are the instruments of choice.  These are very safe asset types typically backed by government T-Bills.