Rate of return earned on Flexible Cash Funds
As Flexible Cash Funds is an investment service in money market funds, any returns that may be earned depend on the yield of the money market fund you invest in. Returns also depend on any applicable costs and charges, e.g. fees and taxes, that may apply.
The funds aim to have a constant price, but this isn't guaranteed. Returns aren't typically expected from share price fluctuations but from holding the investment consistently enough to receive monthly income distributions. Income is generated daily and mostly depends on fund performance and costs.
Money market funds carry a very low risk indicator (1/7), but the value of your investment may rise or fall and returns aren't guaranteed. To fully understand this type of investment, read the Prospectus, Key Information Documents, Risk Disclosure, and Ex-ante Costs and Charges Disclosure in-app.
What is the Flexible Cash Funds APY?
Revolut Business provides the Flexible Cash Funds investment service in money market funds and in exchange charges a service fee. The Annual Percentage Yield (APY) reflects the relevant money market fund’s yield minus the service fees.
This APY represents the fund’s net yield for a specific day on an annualised basis and assumes a constant yield, which may change daily. Divide APY by 365 for an indicative daily rate. Previous day APY, yield, and service fee breakdown are available in-app.
- Go to 'Treasury' on the main menu
- Open 'Flexible Cash Funds'
- Select a specific money market fund
- Hit the info icon next to net annual returns
How will I earn Flexible Cash Funds returns?
The returns you may earn is the result of multiplying the value of the shares you hold in the fund on a specific day by the APY for that day divided by 365. Returns are accrued daily and distributed to investors monthly. Returns are not guaranteed as they depend on the fund’s yield.
If you don’t withdraw the returns earned during the rolling month, they will be automatically reinvested on your behalf at the beginning of the following month. This means we will purchase shares for you in the same fund for an equivalent amount to the returns earned.
The overall final return on your investment may also be affected by other factors like currency fluctuations and taxes. For example, if you invest in a money market fund in a different currency than your base currency or if the country of your tax residence charges taxes.
When do I start earning returns?
When you add money to a Flexible Cash Funds portfolio you’re giving us an order to buy shares in the relevant fund on your behalf. Returns will start accruing once your buy order is settled with the fund manager.
This means that returns will start accruing when your money is exchanged for shares in the fund with the fund manager. Generally, this process can take up to 2 fund business days. Once you become a shareholder in the fund, you’ll start earning returns based on the fund’s yield.
You’ll see any returns accrued above 0.01 cent in-app under the relevant Flexible Cash Funds portfolio. Below that amount returns are still being accrued but will only become visible once they reach 0.01 cent.
Do I have to pay tax on the returns earned?
It's your responsibility to find out whether you need to pay tax on the shares you sell and/or the returns you earn on your money market funds investments through Flexible Cash Funds. We won't process your tax payments proactively or send them to relevant tax authorities.
We'll only withhold or levy taxes to you if we're mandated to perform that obligation to comply with relevant laws in certain jurisdictions. If this is the case, it will be disclosed to you in-app and in your statements.
You should seek independent financial advice if you have any questions. We can't provide tax advice, and never do so.