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Financial Statements
26. Cash and cash equivalents
| 2007 £m |
2006 £m |
|
|---|---|---|
| Cash at bank | 50 | 46 |
| Short-term deposits | 1,543 | 1,406 |
| Cash and cash equivalents | 1,593 | 1,452 |
| Bank overdrafts | (6) | (3) |
| Net cash and cash equivalents | 1,587 | 1,449 |
The carrying amounts of cash and cash equivalents and bank overdrafts approximates their fair values.
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements, and earn interest at the respective short-term deposit rates.
Net cash and cash equivalents are held in the following currencies; those held in currencies other than sterling have been converted into sterling at year-end exchange rates:
| 2007 £m |
2006 £m |
|
|---|---|---|
| Sterling | 727 | 1,087 |
| Euro | 2 | 12 |
| US dollar | 858 | 350 |
| 1,587 | 1,449 |
National Grid USA and its public utility subsidiaries (all consolidated subsidiaries) are subject to restrictions on the payment of dividends by administrative order and contract. At 31 March 2007, £132m (2006: £46m) of cash and cash equivalents were restricted.