Maximising Trust Funds: A Q&A with Ian Buss
With Trusts facing increasing challenges to balance the bottom line, we took some time to chat with Ian Buss from Education Banking Consultancy to discuss how Trusts can maximise returns on their cash balances.
Q: Tell me a little about why you started Education Banking Consultancy.
I started offering support directly to Academies in 2019 after a 30-year career in banking where I focused the last 20 year on the Education and Not for Profit sectors. I started “Education Banking Consultancy” to support Academies making their Banking and Deposit strategies more efficient as many were not used to dealing with deposit strategies for their cash flow and reserves.
Q: What does that entail?
I review the Academy’s Investment policy and deposit strategy and work with them to update their policy and create a deposit strategy that suits their needs and cash flow.
I have found that most Trusts either don’t have a policy or have one that is either out of date or isn’t specific enough to manage their deposit appetite.
I then look at ways that they can use multiple banks (without the need to go through the rigmarole of ID, address verification and application forms for each bank) to generate higher interest on both their reserves and cash flow which also manages risk by spreading funds across more than one banking institution.
Q: What should an investment policy contain?
It should show the types of institutions they can deposit with. As an example, I would always suggest they limit their deposits to a banking institution that is regulated by the FCA with a UK Banking licence. In addition, a credit rating requirement is always a good idea.
Q: What have been the benefits to Trusts?
I now work with over 150 Trusts; between them they earned over £25m in interest in 2024. That is a huge uplift in interest that genuinely adds significant value to them.
Q: Who would benefit from a review?
Any Trust that has a total ‘month end’ balance across all their accounts of £500k or more can benefit. I offer my reviews and on-going support to Academies without cost so they can update their policy, create a deposit strategy and earn more valuable interest for the schools.
If any Trust would like a draft deposit investment policy or a review, they are welcome to email me.
ianbuss@educationbanking.co.uk