GetGround, an all-in-one property investment platform, has launched its first general investment accounts (GIAs), known as Investment Pots, to enable its 27,000 property investment and landlord customers to maximise the growth potential on their rental income and cash holdings.
Every month, GetGround customers receive rental income into the business accounts attached to the limited companies they own. The average GetGround company wallet receives £11.600 in rental income every year and holds upwards of £4,500 in cash at any time. GetGround investors typically keep cash in their business accounts in advance of tax payments, to pay for necessary repairs or refurbishments in their rental properties, or with the intention of saving enough net rental income for a deposit on a new investment property.
GetGround customers can now transfer cash in their wallets into Investment Pots to start earning a competitive return. Transfers in and out of GIAs are free of charge and there is no maximum cap on investment. Withdrawals can be triggered anytime and cash will return to the customer’s business account within four working days. As well as earning a competitive return, GetGround Investment Pot users enjoy the convenience of keeping their cash in the GetGround ecosystem without triggering the unwanted tax implications of moving cash between accounts.
Currently, Investment Pot users will earn a 4.21% annualised return. The rate of return is variable and, as with any form of investment, customers’ capital is at risk.
We are told that GetGround customers currently hold £19m cumulatively in their business accounts. At the current 4.21% rate, if all this cash was transferred to Investment Pots, they would return circa £700,000 for GetGround customers in year one alone.
Unlike in the personal cash world, there are very few business savings accounts offering high interest rates. Consequently it is very challenging for all businesses, and property investment businesses in particular, to find easy-to-access and low-risk ways to grow their cash while holding it. It is understood GetGround’s GIAs are the first of its kind created specifically for landlords and investors in UK property.
Moubin Faizullah Khan, co-founder and CEO of GetGround, commented: “Over the years, as the volume of cash sitting in our investors’ individual business accounts has grown, so too has the length of time these funds sit in wallets doing nothing.
“We want to challenge this passive treatment of cash by creating a simple alternative that requires minimal effort. Whether it’s earning a bit of a return before making annual tax payments or accumulating a larger return to contribute to an off-plan purchase, our Investment Pots help our customers to make their money work harder when they don’t need it, and get it back swiftly when they do.”
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