Whilst the low interest rates we have experienced over the past 15 years have been a good thing for those with mortgages and other debts, it has not been as positive for those people with cash savings in a typical high street bank. Although the cash has been secure, it has enjoyed very little growth…to put it mildly.

There is an assumption within financial services that in order to increase returns, you must increase risk. However, with interest rates now as high as they have been in decades, we are now able to offer our clients a solution that will provide higher rates of return on cash with little additional risk.

We are pleased to let you know that we will now be offering a ‘Cash Savings Platform’ option for our clients. We will be working with a range of providers including Insignis Cash Solutions to provide an active cash management option.

What is a Cash Savings Platform?

A cash savings platform is a way of making your cash work harder by unlocking better interest rates than those offered by high street banks. The platform provides access to a wide range of bank accounts meaning that your money can be deposited in the account that offers the best interest rate at that particular time. In addition, your money is also protected by the Financial Services Compensation Scheme (FSCS)*, greatly minimising risk.

Essentially, it is an aggregator of savings accounts that helps you move your cash to a better interest rate without the hassle, making you more money and saving you time. One single sign-up process provides access to more than 35 banks and building societies, proving market leading rates.

How does it work?

With a Cash Savings Platform there is no need to complete a new application form each time the money moves to a new account. Instead, there is just one form to complete and the money you wish to grow is housed within the platform – this is not for your everyday spending debit account!  Your money remains in your name in the banking system and our providers monitor the best available rates and then transfer the money into the accounts agreed with you.

The money can then be left in the platform, being moved to the accounts offering the highest interest rates on an ongoing basis, or transferred out of the accounts quickly should you need to access your funds.

Further information is available in this video from Insignis Cash Solutions.

Why are they becoming more popular?

The rise in interest rates have certainly increased the popularity of Cash Savings Platforms. With some providers now offering up to 5% on savings, there is an opportunity for people who want easy access to their cash and do not want to invest their money in the stock market, to grow their savings with little risk.

Cash Savings Platforms also save a huge amount of time and remove the element of ‘inertia’ that banks have often relied upon as a way of keeping cash in low interest rate earning accounts. Keeping an eye on interest rates, opening up a new account, completing the paperwork and then moving the money is hugely time consuming if done alone. Therefore, people often don’t get round to changing accounts and miss out on higher returns. Having a cash savings platform means this is more efficient, saving time and securing better rates of interest.

If this is something you would like to discuss further, please contact your financial adviser who will be happy to help.

* FSCS protects you up to £85,000 in total across all accounts you hold within the bank/banking group. If you’re a sole trader, your company is not treated as a separate entity. That means FSCS can protect up to £85,000 in total across all personal and business accounts you hold with the bank.*