There are now a number of options for cash-rich but time-poor savers to earn more interest on their savings. This includes the use of cash savings platforms. They offer a way to improve the returns you are getting from high street banks and can ensure your money is protected by the Financial Services Compensation Scheme (FSCS).
What are cash savings platforms?
Cash savings platforms are like savings supermarkets, where savers have a single log in and then pick and choose which products (from those available at that time) they want to buy.
The real beauty of these platforms is mainly the simplicity, as many people are put off by having to fill in another application form every time they want to open a savings account. With these platforms, you fill in your details once and then decide where you want to save.
Then, when the product matures, or you want to move your money, you can either transfer it out of the platform or move it to the next best available product on the platform at that time. How these platforms work varies from provider to provider, but the premise is the same – complete one application and you have access to a variety of accounts.
Types of cash savings platforms
The type of cash saving platform and the service provided can vary. With some you just select the term or type of account you want and they will distribute your cash. Others will offer you a range of accounts to pick from and you choose how much you want to deposit with each one. It's important to decide which platform works best for you.
What are the benefits of cash savings platforms?
There are a number of benefits to cash savings platforms; they can save you time, help protect your money with the FSCS and don't charge a fee.
The very best rates can be achieved by scouring the whole market and opening as many accounts as required, with the best rates. But for those who don’t have the time, a Cash Savings Platform might be the compromise which means you don’t leave your cash languishing with your high street bank. With just one application process, it makes choosing and switching much easier, helping you get a better return than you already have.
The ease of opening new accounts means it’s easier to spread the cash between a number of providers, to keep more of your cash protected under the Financial Services Compensation Scheme (FSCS). Depending on the amount deposited some platforms will split the funds so that the money is protected by the FSCS.
Low minimum deposits and no fees
The minimum deposit is £1,000 many of these platforms and no fee is deducted from the interest paid – instead the partner banks pay to be included on the platforms.
How to maximise interest on your savings
The best way to maximise interest on your savings is to shop around. Actively manage your cash savings and switch to the highest paying accounts to earn better interest. For too many years now, high street banks have relied on our inertia and so pay some the lowest rates on the market, especially on older, obsolete accounts that people have held for far too long.
The latest innovation in the savings market, Cash Savings Platforms, are growing in breadth and popularity. Their evolution is exciting and, hopefully, as they continue to develop, this will reduce the inertia that savers suffer from, as they make it easier for people to switch.
Do you need help with your cash savings? Why not get in touch and arrange a free consultation to speak to an adviser about services that could benefit you.