Cash control - without the chaos!

There’s a prevailing myth that large cash holdings signal a lack of investment knowledge or a fear of the stock markets. This is one of the reasons that the Chancellor, Rachel Reeves, is rumoured to be about to cut the cash ISA allowance – to encourage people to invest more of their cash savings.

But our joint research with Insignis, an independent cash savings platform provider and TPO’s chosen platform partner, shows that for many, cash is a deliberate and integral part of long-term financial planning.

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The role of cash in financial planning 

More than half (53%) of savers cited nearing or being in retirement as the primary reason for holding cash, aiming to reduce exposure to market volatility and preserve capital.  

At the same time, 76% of respondents said that earning a competitive return on their cash holdings was a vital part of their overall wealth strategy. Interestingly, only 11% of savers pointed to a lack of investment experience as their reason for holding cash.  

Advisers echoed this sentiment, with 8 in 10 stating they regularly incorporate cash management discussions into clients’ broader financial strategies. Many view it not as a compromise, but a source of financial certainty, particularly when market turbulence or life events demand liquidity and security over returns. As financial planners, we always consider the importance of having a healthy cash balance to avoid forced selling of investments during market downturns.

But making that cash work hard is also important. Rather than leaving it to languish in a poor paying account, earning a competitive rate of interest on cash is effectively free money and can go a long way to paying for any financial advice required to keep the rest of your wealth providing for you and your loved ones.

All of that said, for many, the perceived or actual hassle of reviewing multiple savings accounts means that they don’t manage their cash, allowing their banks to take advantage of their inertia. Which is why cash platforms are so valuable. They remove the administrative burden of opening and managing multiple savings accounts, helping savers to earn higher returns with greater protection.  

Over the past decade, the cash savings landscape has evolved significantly, due to the improvement in technology. Today, as well as online savings accounts dominating the best buy tables, mobile app-only accounts are becoming more and more popular.  

And this improvement in technological solutions has seen an increase in the use of cash savings platforms.  

From a niche solution to a mainstream must-have, the leading platforms now have many partner banks making them an obvious solution for savers trying to manage multiple savings accounts.

How do cash platforms work?

With just one application and one login, you can access many competitive savings accounts from multiple providers – keeping your cash working hard whilst being protected by the Financial Services Compensation Scheme (FSCS).

Once you have registered, you move your money from your bank account into a hub account on the platform, from which it can be distributed at the click of a button. You simply choose from the available accounts, state how much you want to deposit into each, and the cash will be moved into one or multiple accounts.

You can switch when a new, improved account comes along, or when your bond matures, without the need to fill in yet another application, with a new login and/or password to remember and more security questions and ID checks to fulfil.  

Even better, you’ll be reminded when better options become available and when any fixed-rate bonds or notice accounts are coming to an end, so you can keep your money earning more. For those seeking diversification, better rates and protection via multiple banking partners, cash platforms are proving to be indispensable.

But they aren’t for everyone, especially for those who have the time and inclination to shop around and open lots of different accounts themselves.  

As platforms are not yet whole of market, you may be able to find even better rates elsewhere – although there are times when platforms offer market leading and exclusive products. Added to that, there is a fee involved when using a platform, either an explicit fee that you’ll pay depending on how much is on the platform, or in the form of a reduced interest rate if the platform takes its fees from the providers offerings.

But the bottom line is that if you earn more interest after the fee has been taken into consideration, than you would otherwise, then it’s good value!

A surge in fixed-term bond maturities

It’s a good time for savers to be aware of the benefits of cash platforms. According to Paragon Bank, more than a million fixed-rate savings deals worth about £70.5 billion, are set to mature in the next four months. Many of these were opened during the interest rate peak of 2023–2024, meaning that a significant volume of cash is soon to be looking for a new home.

While this offers an opportunity to re-lock money into the competitive accounts that are still available, it also presents a tax trap for the unwary. With the Personal Savings Allowance (PSA) remaining frozen since inception in 2016, many savers will now face tax bills on interest earned outside of a cash ISA. And for those with multiple accounts, it can be hard to keep track of how much interest you have earned and therefore if you have paid the right amount of tax.

That’s where one of the standout features of cash platforms comes into its own: the interest summary. Platforms consolidate this information into a single view, making it far easier to check if your tax code has been correctly amended or to help submit accurate self-assessment returns.

Cash is the cornerstone of a resilient financial plan – not a weakness. It’s the pot that protects, especially if managed well.

Take a few minutes to find out the kind of returns you could expect on your savings by requesting a free no obligation illustration from our Savers Hub cash platform – powered by Insignis.

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Source research - Survey Methodology: 
Data was collected by The Private Office and Insignis in April 2025 via a survey of  4,360 adult UK savers and 91 UK-based financial advisers from a number of different companies.

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash or tax advice.