Cater Allen Bank has cut the rate on its cash management account by 0.125 per cent.
The move follows the recent decision by the Bank of England to reduce base rates by 0.25 per cent.
The account has four interest rate tiers with the minimum balance of £5,000 earning 3.68 per cent gross, while investments in the top tier of £100,000 plus currently receive 4.98 per cent gross.
The cash management account is designed for IFAs to hold their clients money without the fear of cross selling.
The account pays IFAs an ongoing commission of 0.5 per cent.