Notes to the consolidated financial statements - analysis of items in the primary statements

20. Cash and cash equivalents

  2010
£m
2009
£m
Cash at bank 136 87
Short-term deposits 584 650
Cash and cash equivalents excluding bank overdrafts 720 737
Bank overdrafts (29) (17)
Net cash and cash equivalents 691 720

The carrying amounts of cash and cash equivalents and bank overdrafts approximate 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 held in currencies other than sterling have been converted into sterling at year-end exchange rates. For further information on currency exposures, refer to note 32(a)(i).

At 31 March 2010, £59m (2009: £52m) of cash and cash equivalents were restricted. This primarily relates to cash held in insurance captive companies.

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