All Wealth Accelerator accounts revolve around a central cash account, which pays interest and serves as a transactional account. This account is used to fund asset purchases, and to receive the proceeds when these assets are sold. The cash account also funds the administration costs and other transactional activities including adviser fee's and 'user pays' transactions.
Once your application has been accepted, your funds are placed into your cash account. This is normally done within one business day of receipt of a correctly completed application and receipt of your funds. All cash is invested in a cash pool held by us for all Wealth Accelerator investors in one or more interest bearing accounts with an Australian bank. This includes the minimum cash requirement referred to below and any additional cash you wish to maintain in your cash account.
The cash account works similarly in our Super Accelerator product, however, there are limits on withdrawals and rollovers. To find out more about a condition of release, click here
Minimum Cash
Our products have a minimum cash account requirement of 1% of your balance or $500 whichever is the greater amount plus any income payments and insurance premiums if applicable. If your account goes below the minimum cash account, Netwealth may auto sell down some of your investments to increase the total of the cash account.
Insufficient or negative cash
If your cash account goes into a negative balance for any reason, a fee is charged for the period that your account has a negative balance.
The fee charged is the inverse of the Cash Interest Rate available here.
If there is insufficient cash in your account, we have a discretion to not pay your regular withdrawal plan payment for the relevant period (if you have one) until such time as there is sufficient cash to allow it to be paid.