Post on 30-May-2020
An introduction to Cash Savings Platforms
Sponsored by
Introduction ...................................................................................................................
Foreword from Raisin UK ..........................................................................................
What is a Cash Savings Platform? ...........................................................................
Cash Savings Platforms providers ..........................................................................
· DCMe
· Flagstone
· Hargreaves Lansdown – Active Savings
· Octopus Cash
· Raisin UK Savings Marketplace
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Contents
Introduction
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An introduction to Cash Savings Platforms Call us free on 0800 011 9705 with your savings query
There are now a number of ways for
cash-rich but time-poor savers to earn more
interest on their savings than their high
street bank will offer, but without the hassle.
The evolution of Cash Savings Platforms
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.
We’ve looked at a handful of the most
popular Cash Savings Platforms on the
market - but with more coming to the
market, we’ll continue to research and
review all of the providers available.
With just one application process, platforms
make choosing and switching much easier.
So, for many, as long as the return is more
than they are currently earning, not having
access to all the very best rates is not as
important. Plus the ease of opening new
accounts means it’s easier to spread the
cash between a number of providers, to
keep more protected under the Financial
Services Compensation Scheme.
As these cash services can each be slightly
different, it makes sense to choose the one
that best suits your needs.
The very best rates can be achieved by
scouring the whole market and opening as
many accounts as required. But for those
who don’t have the time, and generally have
balances of more than £85,000, the savings
platforms might be the compromise which
means you don’t leave your cash languishing
with your high street bank, earning very
little interest or protection.
If these platforms can go some way to help
savers make their cash work harder, it can
only be a good thing.
In this guide, we go into more detail on each
platform and highlight who these individual
platforms might be more suitable for.
There’s more to come. In the coming weeks
and months, we’ll be adding any new names
- so watch this space for more information.
Of course, in the meantime, if you’d like to
discuss any of the platforms mentioned, feel
free to get in touch on 0800 011 9705.
Anna Bowes,
Co-Founder of Savings Champion
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Foreword from Raisin UK
Call us free on 0800 011 9705 with your savings query
Traditional high street banks have a lot to
offer, but they’re just one part of a broader
savings landscape available to UK savers.
Exploring the independent advice and
information provided by Savings Champion,
it doesn’t take long to discover that there is a
wide range of alternative banks and financial
service providers who aren’t just offering
competitive rates, but new and different
approaches to saving money.
If you’re a saver, it’s likely that you know
what you want from a bank or financial
service provider, even if you don’t have a
specific savings product in mind. Whatever
particular requirements you may have,
as savers ourselves at Raisin UK, we find
that the most critical feature of a savings
product is knowing that your capital is safe
and that you’re going to get a good return.
We’ve built and continue to grow the
Raisin UK savings marketplace with these
values in mind.
Raisin.co.uk is the UK savings marketplace
for Raisin, which was founded in Berlin in
2013, and to date have served over 160,000
savings customers across Europe, “raising”
the bar and expectations for savings.
At Raisin UK, we aim to provide UK savers
with a convenient way to apply for savings
products from a range of partner banks,
some of which you may have heard of
and others which are exclusive to our
marketplace, providing you with the
reassurance of a recognisable brand and
clear deposit protection schemes.
Ensuring that you know which savings
products are available and understanding
why you should apply for one over another,
is vital when choosing the right savings
product for you. To paraphrase an old saying;
knowledge is savings power.
By providing expert, independent and
unbiased advice and information to UK
savers, we feel that Savings Champion
echoes our values by encouraging you, the
saver, to consider savings products which
may better suit your needs than those
which you’ve already been exposed to.
We hope that this savings guide helps you
to save time and make money.
www.raisin.co.uk
An introduction to Cash Savings Platforms
What is a Savings Platform?The rise of the Savings Platforms
Cash Savings Platforms are taking the
savings market by storm, proving - from
what we can see - to be very popular.
This latest innovation is growing in
popularity, with some big names now
getting a piece of the action.
So, what are Cash Savings Platforms?
Put simply, they’re a savings supermarket,
where savers can 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
the simplicity, as many people are put off
by having to fill in another 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 that is
available on the platform at that time.
How these platforms work varies from
provider to provider, but the premise is the
same – one application and then you have
access to a variety of accounts. Some of the
platforms do more of the legwork for you,
you just select the term or type of account
you want and they will distribute your
cash, while others will offer you a range of
accounts to pick from and you choose how
much you want with each one. But you can
decide which platform works best for you.
At the moment there are a handful of cash
savings platforms including Raisin UK,
Flagstone, Octopus, Hargreaves Lansdown
Active Savings and DCMe. DCMe is the
latest provider to join the market with
others in the wings. Insignis Cash Solutions
is also available but less is known about
them at this point. More details will follow.
Savings Champion also runs a Cash Advice
Service, looking at the very best rates
available across the whole of the market, not
just limited to fixed-term savings or a limited
number of banks. Savings Champion finds
the best accounts from the whole market
and assists with completing the paperwork,
charging a one-off 0.15% plus VAT (min
£500) for individuals.
To find out more, give us a call on
0800 011 9705 - we’d love to hear from you.
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Call us free on 0800 011 9705 with your savings queryAn introduction to Cash Savings Platforms
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Call us free on 0800 011 9705 with your savings query
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Background information
Dynamic Cash Management express
(DCMe) is a new savings platform from a
long-standing cash management provider,
built around regular reviews of your savings.
The original Dynamic Cash Management
service was one of the early entrants to the
UK market, launched in 2010, and to date
has attracted over £800million of cash
savings. As a result, the team have become
cash management specialists.
DCMe is a savings platform provided by
Gale and Phillipson Investment Services,
a financial advice and investment
management group which currently looks
after over £1billion.
About the platform
Whilst this is a platform, DCMe is a bit
different to some of the other platforms in
our guide, as it is built around regular
reviews of your savings.
It produces an initial portfolio of the best
accounts from the selection available, to suit
your needs. It also produces a regular
review to suggest better accounts if they
are available and the options for any
maturing bonds. All you need to do is to
confirm you want your cash to be moved
and DCMe will carry out the request –
without the need for any further application
forms to be completed.
The minimum deposit via this platform is
currently £50,000. So, if this does not suit
you, an alternative platform might be more
appropriate.
DCMe has recently launched and currently
has partnerships with five UK banks;
Aldermore, Metro Bank, Bank & Clients,
OakNorth and Cambridge & Counties,
offering notice accounts and fixed rate
bonds.
DCMe intends to continue to increase its
partner banks and the products available
and we’ll keep you up to date with this.
At the moment, DCMe only caters for
individual savers who are UK residents,
although accounts can be opened in single
and joint names. In addition, those acting as
Power of Attorney for a client or loved one
can use DCMe to improve and manage cash
funds on behalf of someone else.
As with all of the platform providers, the
key benefit is that you can open a number
of different accounts with different
providers, but you only have to fill in your
personal details once during the application
process and with DCMe they will complete
a single compliance and identification
check.
Of course, just because it’s on the platform,
it doesn’t mean that it is a best buy,
especially when you deduct the platform
fee. But sometimes simplicity is the best
option.
Who might DCMe be right for?
If the following characteristics meet your
requirements, the DCMe Platform could be
the solution to your cash needs - as you can
open multiple savings accounts, with
multiple providers, without having to make
multiple applications.
And as the platform offers access to notice
accounts, as well as fixed rate bonds, if you
are looking for a way to earn significantly
more than your high street bank is offering,
this could be the simple alternative you
need to leaving your funds languishing and
potentially unprotected.
But rather than simply choosing from a list
of accounts available on the platform, this is
review driven. So, you tell DCMe your
requirements and they will provide the best
solution from the range of accounts
available.
· The minimum deposit on the platform
is currently £50,000, but the individual
products normally have minimum
deposits from £1.
· The application and opening of accounts
are done online, although if you choose to
proceed, you will be sent an application
form in the post to be signed and
returned. But you will not have any more
paperwork to sign.
· DCMe will capture some key information,
such as how much money needs to be
accessible and how much can be tied up. A
bespoke illustration will then be created,
which will indicate the access, returns and
security you could achieve.
· Within your DCMe account, you can open
some accounts in individual names and
some in joint, if you’d prefer. In fact, some
institutions will only open accounts in
single names - so you may have two
accounts instead of one. But remember,
you don’t need to fill in any extra forms.
· Apply once and satisfy upfront ID checks
– no separate ID checking is required for
every new savings account opened.
· A regular review will make suggestions on
how you could improve your savings
portfolio. If you like the suggestions,
simply click ‘confirm’ and the platform will
make the changes for you.
· If you want to add new funds or make
changes within the review period, simply
call your dedicated client manager and
they’ll help.
An introduction to Cash Savings Platforms
Fees
DCMe charges a fee of 0.25% per year of
the balance of your investment. This may
be in the form of commission from the
providers that your money is placed with,
which would reduce the advertised rate
initially illustrated.
But, where this is the case, this will be
offset against your fee. The remaining
amount due will be deducted from your
Hub Account each quarter.
For example – on a balance of £50,000 and
a fee of 0.25% per annum, the annual fee
due would be £125.00. If £100.00 was
received in commission from the account
providers, this will be deducted from your
fee and the remaining £25.00 will be taken
from your Hub account.
DCMe provides a clear illustration to show
the return before the fee and net of the fee
and quarterly fee statements are available
to view on the online portal.
Application Process and Customer Service
In order to decide whether the DCMe
platform is right for you, a bespoke
illustration of the rates that you could
achieve is produced, after you have
supplied pertinent information about your
access needs for your money.
For example, if you have £200,000 to
deposit and £50,000 can be tied up for two
years, while the remainder needs to
accessible within six months, a DCMe
savings specialist will suggest the best
accounts available on the platform to meet
those needs.
At the same time, they will complete any
necessary ID checks, so that if you decide to
proceed, you are ready to go.
When you agree on the right choice of
accounts and are ready to proceed, you will
receive a letter in the post, including the
only application that you will need to sign
and send back.
Provided you have satisfied the regulatory
checks and your application has been
accepted, you will receive your confirmation
email, at which point you can set up your
password for the online portal, send the
money to the DCMe Hub Account and the
funds will be distributed.
You can pay into your DCMe Hub Account
(held by Barclays) either by electronic
transfer (if necessary over a series of days),
CHAPS (paying the £20- £30 fee) or they
will also accept a cheque.
As soon as you send the money, DCMe will
initiate the transfer of the funds from the
Hub Account to the new providers. This
process can take up to five working days.
Although you send your money via the
DCMe platform, your money will be held
with the individual partner banks and
building societies that you open accounts
with - NOT DCMe (Gale and Phillipson) –
so there is no credit exposure with them.
You will be protected by the Financial
Services Compensation Scheme (FSCS) that
is applicable to each individual provider.
This does mean however that you need
to be wary of placing more than £85,000
(£170,000 in joint names) with a provider
that you already have funds with –
although you are in control of where your
money is placed.
As this platform includes notice accounts,
you can choose to redeem funds from
your portfolio.
If you choose to make a withdrawal from a
notice account, you will be notified when
the funds are to be transferred to the Hub
Account AFTER the notice period is up.
Reporting
Every quarter (unless your money is all tied
up in term products), the DCMe platform
will produce a portfolio review and make
suggestions if there are any improvements
that can be made and/or the options
available to you for any maturing bonds.
There will be an annual summary of all
transactions, as well as a fee summary for
your records.
A final word
DCMe is a bit different. Rather than simply
a DIY (pick and mix) option, a savings
specialist is on hand to create a bespoke
portfolio suggestion of the best savings
accounts to suit your needs from those
available on the platform.
This can include fixed rates and notice
accounts – hopefully the choice of account
types and providers will continue to
increase going forward. We will keep you up
to date on this.
DCMe will then make regular suggestions
to help the customer review and improve
their savings whenever possible.
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Call us free on 0800 011 9705 with your savings queryAn introduction to Cash Savings Platforms
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Background information
Flagstone is an Financial Conduct Authority
(FCA) authorised and regulated financial
technology company. Founded in 2013, it
was the first cash platform to be established
in the UK and is a market leader, which
often enables it to secure exclusive interest
rates from its banking partners. Flagstone
provides clients with access to more than
500 accounts from 26 partner banks.
About the platform
The Flagstone cash platform is the pick
and mix variety. Offering a variety of
savings accounts, which you can pick
and choose from.
The minimum deposit is currently
£250,000, although this will be reducing to
£50,000 in early 2019. So, if you are looking
to deposit smaller amounts, an alternative
platform might be more appropriate. Read
on for our other platform reviews.
Once you are registered with Flagstone,
you can view, manage and open your
choice of savings accounts with just a few
clicks of the mouse.
Although you send your money to Flagstone,
your money will be held with the individual
partner banks and building societies that
you open accounts with - NOT Flagstone
– so you will be protected by the Financial
Services Compensation Scheme (FSCS)
through the individual provider.
This does mean however that you need to
be wary of placing too much money with a
provider that you already have funds with
–although you are in control of where your
money is placed.
Flagstone is a well-developed platform and
at the time of writing has partnerships with
28 UK savings providers and offers many
different product types, including easy
access, notice accounts and fixed rate bonds.
Not all of the banks will offer all products.
For example, of the 28 UK providers on the
platform, 20 offer personal accounts and 20
offer business accounts.
As well as personal and business accounts,
Flagstone also caters for Self Invested
Personal Pensions (SIPPs), charities
and trusts.
Of course, just because it’s on the platform,
doesn’t mean that it is a best buy, especially
when you deduct the platform fee (more on
this later). But sometimes simplicity is the
best option, which is why these platforms
are being developed.
You can always check what the very best
rates on the market are by looking at our
independent best buy tables.
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Call us free on 0800 011 9705 with your savings query
Who might Flagstone be right for?
If you meet the criteria, the Flagstone Cash
Platform could be the solution to your cash
needs, as you can open multiple savings
accounts, with multiple providers - without
having to make multiple applications.
And as the platform offers access to easy
access and notice accounts, as well as fixed
rate bonds, if you are looking for a way
to earn significantly more than your high
street bank is offering, this could be the
simple solution you need, compared to
leaving your funds languishing in low rates
and unprotected.
· The minimum deposit on the
platform is currently £250,000
and the individual products have
a minimum deposit of £75,000 or
greater. (However,as mentioned
earlier, both of these thresholds are
to be significantly reduced in 2019).
· The application and the opening of
accounts is all done online, although this
platform works a little differently. While
it is an execution only and online service,
an adviser will speak to you initially, in
order to create a bespoke illustration,
which will indicate the returns and
security you could achieve and to explain
how it all works.
· Flagstone accounts can be opened in
single or joint names. But if you want
some accounts in single names and some
in joint, you’ll need to open more than one
Flagstone account and each will need a
minimum deposit of £250,000.
· You’ll need to scan certified copies of
identification documents such as a
passport and driving licence to Flagstone,
who will then verify your identity
electronically. But you will NOT need to
do this each time you apply fora savings
account – just on the initial Flagstone
application.
Fees
There is an initial set up fee of £500,
plus the following annual fee which is
paid monthly in arrears.
Account Balance
£250,000 - £999,999
£1,000,000 - £2,499,999
£2,500,000 - £4,999,999
£5,000,000 - £9,999,999
£10,000,000
Management Fee
0.250%
0.225%
0.200%
0.175%
0.150%
An introduction to Cash Savings Platforms
Application Process and Customer Service
In order to decide whether the Flagstone
platform is right for you, a Flagstone adviser
will produce a bespoke illustration of the
rates that you could achieve and take you
through this and a demo of how the platform
works. If you have a minimum of £250,000 in
cash that you are looking to deposit, request
an illustration from a Flagstone adviser.
When you are ready to proceed, complete
the application pack that will be emailed to
you – this can be either completed online
or printed and completed by hand, then
scanned back to Flagstone.
ID - Flagstone will need scanned certified
copies of ID for every customer.
Once the application and ID is accepted and
your account has been set up, you can log in,
deposit your funds in the Hub Account and
build your savings portfolio.
Just because they are on the platform, this
doesn’t mean they are the best rates, but
Flagstone does have some competitive
options and some are exclusive.
You can pay into your Flagstone Hub
Account (held with Barclays) either by
electronic transfer (if necessary over a
series of days), CHAPS (paying the £20 -
£30 fee) or they will also accept a cheque.
As soon as you have chosen your accounts,
Flagstone will initiate the transfer of
the funds from the Hub Account to the
new providers. This process is generally
completed within two working days.
The funds are never held by Flagstone –
so there is no credit exposure with them.
However, the money is transferred to the
chosen banks via the trustee Hub Account
with Barclays – so until you choose your
accounts, you will be holding more than the
FSCS limit with Barclays.
On maturity, the initial deposit and interest
will be returned to the Hub Account with
Barclays. But it will remain there until
you give your instruction as to where it
should go next – either back to your linked
current account or into a new savings
account via Flagstone. The platform
cannot automatically move the funds out
of the Hub Account, so it is the customer’s
responsibility to confirm what happens to
the funds next. Otherwise the funds will stay
in the Hub Account, earning no interest and
potentially without full FSCS protection,
if the amount is greater than £85,000
(£170,000 for joint accounts).
In order to keep customers up to date
with accounts that are available via the
platform, there is a weekly email showing all
prevailing rates, so that they can make any
changes or add further funds if you see a
new account that is of interest.
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A final word
Currently Flagstone provides clients
with access to more banks than any other
platform and a choice of more accounts,
including a number of exclusive rates for
instant access and notice accounts – not
just fixed rate bonds. So, it is a platform that
could service many of your savings needs.
Of course, at this point you’ll need at least
£250,000 - so may simply not be an option
for many savers.
It also secures rates from its banking
partners that you won’t find elsewhere in
the market, which will sometimes be market
leading – as ever, we’ll keep you informed.
These offers will change, so you’ll need to
keep an eye on how they compare with the
wider market.
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Call us free on 0800 011 9705 with your savings queryAn introduction to Cash Savings Platforms
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Background information
Hargreaves Lansdown is a FTSE 100
company, based in Bristol where they now
employ over 1,300 people.
In addition to its cash savings platform
‘Active Savings’, Hargreaves Lansdown has
one of the UK’s largest investment platforms
for private investors. They have helped
investors for more than 35 years and today
look after more than £86 billion for over 1
million clients.
About the platform
Active Savings is the pick and mix variety.
Think of it like a supermarket which offers a
variety of savings accounts, which you can
pick and choose from.
The key benefit of a platform is that you
can open a number of different accounts
with different providers, but you only have
to fill in your personal details once during
the application process and Hargreaves
Lansdown will complete a compliance and
identification check.
So, once you have set up your Hargreaves
Lansdown Active Savings Account you
can view, manage and open your choice of
savings accounts with just a few clicks of
the mouse.
It is worth noting that your money will be
held with the individual banks and building
societies that you open accounts with - NOT
Hargreaves Lansdown – so will be protected
by the Financial Services Compensation
Scheme (FSCS) or equivalent European
scheme that is applicable to that individual
provider. This does mean however that you
need to be wary of placing too much money
with a provider that you already have funds
with –although you are in control of where
your money is placed.
At the moment, Active Savings has
partnerships with a small number of banks,
offering several fixed term deposit accounts.
But they will continue to increase the
products available and we’ll keep you up to
date with this.
Currently, Active Savings is only
available for individuals – but no joint
accounts I’m afraid.
Of course, just because an account is on
the shelf, doesn’t mean that it is a best buy,
but sometimes simplicity is the best option,
which is why these platforms are being
developed. You can always check what the
very best rates are on the market by looking
at our best buy tables.
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Call us free on 0800 011 9705 with your savings query
Who might HL Active Savings be right for?
If you are looking for a streamlined online
application process, where the following
restrictions imposed by this simplification
are not a barrier to you, then Hargreaves
Lansdown Active Savings could be an option
to consider further;
1. The whole process is done online,
although there is a helpline number
for those who need assistance.
2. The accounts can be opened in sole
names only.
3. The minimum balance needed to open
a Hargreaves Lansdown Active Savings
Account is £1,000. The minimum for each
product will vary. At the moment the
highest minimum is £1,000.
4. Your identity will initially be checked
electronically – but if you fail, you will be
asked to send identification documents
in the post.
Fees?
At the time of writing Hargreaves
Lansdown has partnerships with nine
banks: Aldermore, Coventry Building
Society, Metro Bank, Charter Savings
Bank, ICICI UK, Paragon, United Trust,
Shawbrook Bank and Close Brothers,
offering a number of fixed term deposit
accounts, with terms from three months
to five years - some of which are very
competitive, if not market leading.
As Hargreaves Lansdown receives
commission from the savings provider
partners, the rate you are offered is the
rate you will earn - there is no additional
fee to be paid.
However, this may mean that you could
earn a better rate by going directly to
the provider – although this would mean
completing a separate application for
each account you open. And sometimes
Hargreaves Lansdown will have arranged
exclusive market-leading bonds.
So, it makes sense to check the competition
on our best buy tables or call one of our
savings experts on 0800 011 9705.
An introduction to Cash Savings Platforms
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Application Process and Customer Service
Once accepted, you can view, purchase
and manage a range of savings products
online – all in one place, without filling in an
application form or going through ID checks
each time.
Ordinarily, and without the use of such
a platform, if you open multiple savings
accounts, you have to apply to each bank
and therefore fill in multiple application
forms and pass each bank’s own ‘Know Your
Client’ identification checks.
Application
You need to deposit the minimum £1,000
during the application process. If you have
not transferred this money into a savings
product within three days, the funds will
either be returned to your bank account, or
to your Hargreaves Lansdown Fund & Share
account (if you have one)
ID
This is initially automatically checked
electronically – if you pass the criteria, you
will be advised that your Active Savings
account is open.
Depositing funds onto the Platform
Once the application and ID is accepted and
your account has been set up with at least
the minimum £1,000, you can log in, deposit
further funds in the Hub Account and
build your savings portfolio, choosing how
much you want to deposit in each account.
Remember that the FSCS protection applies
to the total amount held with each bank
or building society – not the amount held
in each account. This includes funds held
outside the platform too.
The Hub Account is provided by Barclays –
but the money held in the Hub Account is
ringfenced from other Barclays cash that
you may hold outside the platform, for FSCS
purposes.
At the moment, you can only pay into your
Active Savings Hub Account (held with
Barclays) either by debit card or from
another Hargreaves account, if you hold
one. The debit card will normally allow a
single transaction of up to £99,999 – so
could be a better way to deposit money
than via normal electronic transfer, as many
banks will restrict the amount that can be
transferred per transaction/per day to as
little as £10,000.
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Call us free on 0800 011 9705 with your savings query
In addition to the Active Savings Account,
you could open a Hargreaves Fund &
Share account (which would normally be
used to fund any investments that you
might want to make via Hargreaves) into
which you can deposit funds by electronic
transfer (if necessary over a series of
days), CHAPS (paying the £20- £30 fee)
or they will also accept a cheque. You can
then transfer the funds from the Fund
& Share account into the Active Savings
Account.
Unlike other platforms, each savings
account via Hargreaves Lansdown
Active Savings has a designated start
date. So, while you need to have opted
for the account you want to open within
three days of transferring the funds
into the Hub Account, it will actually be
sent to the new savings account on the
designated start date. So, there may be
a period of time that your cash is not
earning any interest.
The funds are never held by Hargreaves
Lansdown – so there is no credit
exposure with them.
Notification of maturity
When your bond is due to mature,
Hargreaves Lansdown will contact you to
check whether you want to open another
bond via the platform or have your money
sent back.
Once the funds are back in the Hub Account,
you can then request them to be either
moved to a different savings account by
clicking on the account of your choice
or choose to have it sent back to your
nominated current account. There is no
option for transferring the money to any
other external account, to safeguard funds
from any potentially fraudulent activity.
Remember, if the money is in the Hub
Account for more than three days, it will
be returned to either your Fund & Share
account (if you have one) or back to your
linked current account.
A final word
Active Savings offers a number of fixed rate
bonds from a limited number of providers
but sometimes will offer exclusive rates that
are better then what is available from the
open market, so are well worth a look to see
what they have on offer.
An introduction to Cash Savings Platforms
22
Background information
The Octopus Group was founded in 2000
and is based in London. Across all Octopus
businesses, the group now has more than
500 employees and 150,000 customers, and
its investments have put more than £8.3
billion into the UK economy.
About the platform?
Octopus Cash allows you to split your
money between a number of partner
providers, therefore keeping your cash
more protected - whilst applying and
depositing your funds once.
Rather than offering a range of individual
accounts from different banks to pick and
choose from, Octopus Cash automatically
splits your cash (if the deposit is greater
than £85,000) between its partner
providers, based on what account types
you choose, to minimise the risks for those
with larger balances and simplify the
application process.
If you’re saving £85,000 or less, Octopus
will deposit all your cash with the partner
bank which pays the best rate on the chosen
product. If you are saving more, they will
deposit it in chunks of around £85,000,
starting with the bank that pays the highest
rate and ending with lowest.
Therefore, the rate you are offered depends
on the type of product and the amount you
are looking to deposit.
The following account types are
currently available;
Individuals
12 month bond
35 day notice account
Businesses
6 month bond
12 month bond
18 month bond
24 month bond
35 day notice account
There are also accounts available for
charities and trusts.
The key benefit is that you can deposit a
single lump sum without needing to choose
the providers. And on maturity, the money
can automatically be rolled over into
the best blended rate from the Octopus
partner banks.
It is worth noting that your money will be
held with the individual banks and building
societies that you open accounts with – NOT
Octopus Cash – so will be protected by the
Financial Services Compensation Scheme
(FSCS) or equivalent European scheme that
is applicable to that individual provider.
Currently the limit is £85,000 per person,
per banking licence.
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Call us free on 0800 011 9705 with your savings query
This does mean however that you need to
check whether you already hold money with
the Octopus partner providers that your
money would be allocated to, to ensure
you’re not exceeding your FSCS limit.
A number of providers share banking
licences, so make sure you’re covered using
our full list.
At the moment, Octopus Cash has
partnerships with a small number of
banks. But they will continue to increase
the number of partnerships and the
products available and we’ll keep you up
to date with this.
The banks they partner with are ‘Challenger
Banks’, which tend to offer far better rates
than the high street providers – but the
rates may not always be the very best on
offer from the open market.
The purpose of a platform like Octopus Cash
is to offer the simplicity of automatically
spreading your cash among a number of
providers to mitigate the risks of exceeding
the FSCS limit, whilst offering a blended rate
that will be far superior to the high street
– and doing so year-in, year-out, without
having to switch.
As well as private individuals, Octopus
Cash is available to businesses, charities
and trusts, although the number of partner
banks is lower with the latter.
If you are interested in looking at its
savings offerings, request an illustration.
You can always check what the very best
rates are on the market by looking at our
best buy tables.
At the moment it has partnerships with
six banks: Cambridge & Counties Bank,
Close Brothers Savings, OakNorth Bank,
Aldermore, Metro Bank and Bank & Clients.
But not all of the banks will offer products
for all the Octopus Cash accounts.
For example, for individual savers (as
opposed to companies) if you are looking
for a 12 month fixed rate bond, only five
of the providers will be included. So, if you
want to have full FSCS protection on the
amount you deposit, you need to keep your
deposit to no more than £424,000. Any
more than this and the balance with some of
the underlying providers would be greater
than the £85,000 FSCS protection limit.
But, as mentioned above, rather than
choosing from the banks on the platform,
the platform does the work for you – you
tell them how much you want to deposit
and they’ll tell you what the blended rate
would be.
However, if you already have cash with
any of the partner banks, you can contact
Octopus Cash and they can provide a new
illustration and blended rate without that
provider included.
An introduction to Cash Savings Platforms
Who might Octopus be right for?
If you are looking for a way to deposit a
larger sum online, in a simple way, where
the following restrictions imposed by this
simplification are not a barrier to you,
then Octopus Cash could be an option to
consider further;
1. The accounts can only be opened in sole
names – no joint accounts I’m afraid.
2. For individuals – the whole process is
done online, although there is a helpline
number for those who need assistance.
3. For businesses, they need to apply for an
illustration online or by calling Octopus
-but if they want to proceed, they need to
request and complete a paper application
via the post.
4. Remember that there are only a limited
number of banks on the Octopus Cash
platform, so you need to keep your total
deposits under a certain amount if you
want all of your cash to be within the
FSCS limit. You can of course save more
if you wish, but it won’t all be covered.
Octopus Cash also offers both individuals
and businesses a 35 day notice account.
However, there are only two partner banks,
so we feel that this is not the best value at
this stage. The blended rate on a balance
of £170,000 is just 0.83% gross/AER for
individuals, 0.88% for businesses.
Businesses, charities and trusts can also
open accounts on the Octopus platform –
contact us for more information or take a
look at the Octopus Cash website.
Fees?
Octopus Cash is paid a fee of between 0.15%
and 0.30% by the partner banks, so there is
no further fee to be paid by the customer.
The blended rate that you are quoted is the
rate you will be paid and therefore you know
the interest you will receive.
Application Process and Customer Service
As an individual, you set up an account
and apply online.
If you are applying as a business, you
will need to set up your account online
but download and complete the paper
application from the Octopus website.
Once you have set up your account and
requested a product, your identity will
be checked electronically – if you fail,
Octopus will email you to request additional
documentation, which can simply be
photographed or scanned and emailed to
them. You don’t need to arrange for certified
copies, which is a real bonus.
Once you have confirmed the account you
wish to use, you have one week to fund it
in order to guarantee the rate you were
advised of.
24
You can do this by cheque or bank transfer.
You can send the whole amount in one go
as Octopus Cash will automatically split the
money for you, but if your bank will only
allow electronic transfers within a daily
limit, you can email Octopus on support@
octopuscash.com to explain that you will be
sending the money in instalments –although
once again remember the funding needs to
have been completed within one week of
signing up. Alternatively, you could ask your
bank to make a single CHAPS payment, but
you will probably be charged for that.
Where is the money kept before it is
deposited into the partner banks?
Prior to being deposited with the partner
banks, your money will be kept in a
segregated HSBC trust account until it is
distributed. Octopus says that once they
receive your money, they aim to get it
working within a week. However, if you are
funding your account by cheque, be aware
that it will take up to an additional five days
for it to clear.
Therefore, there will be a period of time
where you could have more than £85,000
deposited with HSBC.
What happens at the end of the term of
the fixed rate bond option?
One month before your savings mature,
Octopus Cash will get in touch to see if you
would like to roll over for another term at
the prevailing rate or if you would like to
withdraw. They will also be in touch 14 days
before the bond matures.
If you choose for your money to roll over,
your final balance (including interest)
will be returned to the segregated HSBC
bank account, or be automatically spread
out again across the partner banks within
a week.
If Octopus does not receive any instruction,
your money will go back into the segregated
HSBC trust account while they try and
confirm what you’d like to do. So, be aware
that this means you could once again, have
more than the FSCS limit with HSBC – and
you’ll not be earning any interest!
A final word
Octopus Cash is a different type of
platform. You still only sign up once but
rather than having to choose from a range
of products, your money is placed into
a single account. So, for those who just
want to find a home for sums of more than
the FSCS protection limit but don’t want
to choose the individual accounts, this
platform could be the best choice, although
it may not achieve the best returns.
25
Call us free on 0800 011 9705 with your savings queryAn introduction to Cash Savings Platforms
Background information
Raisin UK is the UK operation of
Raisin.com, a Berlin-based fintech
innovator that has quickly grown to
become one of the largest financial
technology companies in Europe.
Raisin.com launched its first marketplace
for savings products in 2013 in Germany.
Raisin is funded by household name
investors such as PayPal and has raised over
€70 million in capital. According to Raisin,
more than 120,000 customers have invested
over €6 billion with 50 partner banks.
Based in Manchester, the UK business was
established in 2013 as PBF Solutions and
became part of Raisin in September 2017.
The UK platform currently has five partner
banks and 13,000 savers in the UK have
opened savings accounts via this route.
About this platform
At the moment, Raisin UK has
partnerships with a small number of
banks, offering several fixed term deposit
accounts. But they will continue to
increase the products available and we’ll
keep you up to date with this.
The key benefit is that you can open
a number of different accounts with
different providers, but you only have to
fill in your personal details once during
registration and complete a single online
compliance check.
Of course, just because it’s on the shelf,
it doesn’t mean that it is a best buy, but
sometimes simplicity is the best option,
which is why these platforms are being
developed. You can always check what the
very best rates are on the market by looking
at our best buy tables.
It is worth noting that your money will be
held with the individual banks and building
societies that you open accounts with - NOT
Raisin UK – so will be protected by the
Financial Services Compensation Scheme
(FSCS) or equivalent European scheme that
is applicable to that individual provider.
This does mean however that you need to
be wary of placing too much money with a
provider that you already have funds with
– although you are in control of where your
money is placed.
26 27
Call us free on 0800 011 9705 with your savings query
At the moment it has partnerships with
five banks: Gatehouse Bank, ICICI Bank,
Shawbrook Bank and QIB UK, offering a
number of fixed term deposit accounts,
some of which are very competitive.
The rates customers receive through
Raisin UK will always be the same or
better than the rates available on those
banks’ own websites, although that doesn’t
automatically mean they are market leading
– so it makes sense to check the competition
on our best buy tables or call one of our
savings experts on 0800 011 9705.
Additionally, new customers will currently
be rewarded for the first product they fund
via the Raisin UK platform. At the moment
those new customers saving more than
£10,000 will receive a welcome bonus for
funding their savings account.
Those saving £10,000 to £39,999 will
receive a bonus of £10 to add to the
interest they earn on the savings account
they choose. Savers with £40,000 to
£74,999 will receive £80 and savers with
£75,000 and over will receive a £100 bonus.
The amount depends on how much you
deposit but can turn a competitive rate into
a market-leading rate.
Be aware that in order to receive the
bonus, you need to claim it.
All you need to do is send an email from
the email address you registered with,
containing your full name, the amount
that you are eligible to claim and “Bonus”
in the subject line to bonus@raisin.co.uk,
within six months of funding your new
fixed term deposit.
Once your email has been received
and it has been verified that you meet
the eligibility requirements, Raisin will
credit your nominated account with the
appropriate bonus within 60 days of you
successfully funding your savings product.
For example, at the time of writing Gatehouse
Bank is paying 2.10% gross/AER. On a balance
on £10,000 that would mean earning £210
over 12 months. But if you add the £10 bonus,
that means you would take home £220 gross
which equates to 2.20% gross/AER.
Even with the maximum balance of £85,000,
once you add the £100 bonus, the overall
return equates to around 2.23%.
An introduction to Cash Savings Platforms
Who might Raisin UK be right for?
If you are looking for a streamlined online
application process, where the following
restrictions imposed by this simplification
are not a barrier to you, then Raisin UK
could be an option to consider further;
1. The whole process is done online,
although there is a helpline number
for those who need assistance.
2. The accounts can only be opened in sole
names – no joint accounts I’m afraid.
3. The maximum deposit is £85,000 per
account – some accounts may have a
lower maximum but none will accept
more via the Raisin UK platform. This
means that your funds will be protected
by the Financial Services Compensation
Scheme or European equivalent –
whichever applies – although if you open
multiple accounts with the same provider,
remember that only £85,000 of the total
deposited with them will be protected -
as it is the amount held per provider, not
per account, which is important.
4. Your identity will be checked
electronically – so if you fail, you will
not be able to open an account through
Raisin UK. However, you can try again
as often as you like – sometimes you
will have failed the ID check because of
a small error – most commonly getting
your date of birth wrong or not entering
your official name on the application.
Fees?
There’s no explicit fee for the customer, so
the rate you see if the rate you’ll get. Raisin
UK is paid a fee directly from the providers
they use.
Application Process and Customer Service
Once accepted, you can view, purchase
and manage a range of savings products
online – all in one place, without filling in an
application form or going through ID checks
each time. Ordinarily and without the use of
such a platform, if you open multiple savings
accounts, you have to apply to each bank
and therefore fill in multiple application
forms and pass each bank’s own ‘Anti-
Money Laundering’ and ‘Know Your Client’
identification checks.
And once you’ve set up your single online
login, you will be able to view and manage
all the products you have opened through
Raisin UK, via your Raisin UK Account -
which is powered by Starling Bank.
The process for opening savings accounts
through Raisin UK once you have registered
is as follows:
Log in: Visit raisin.co.uk, click ‘My account’
and enter your email address and password.
Choose a savings account: Find the
savings account in the marketplace, click
‘Open account’ and enter how much you
want to deposit.
28
Transfer your deposit: From your personal
bank or building society account, transfer
your deposit to your Raisin UK Account
using the sort code and account number
provided in your welcome letter and on
display within your Raisin UK Account, to
complete the application. You can make
multiple transfers to your Raisin UK
Account from as little as £0.01.
Deposits are made to your Raisin UK
Account and then processed by Raisin’s
processing partners Starling Bank and
Meteor Asset Management (MAM).
MAM acts as a trustee and can therefore
transfer your funds to your chosen
provider on your behalf. However, the
funds are always in your name and will
remain free from any third-party right to
sell or transfer the funds.
Starling Bank powers the Raisin UK Account
and so whenever you hold money in your
Raisin UK Account, this is held by Starling
Bank. This means that Starling Bank will
hold and transfer deposits between you, the
customer, and Raisin’s partner banks.
As this is an online process, you also need
to send your funds electronically. It’s worth
noting that your current account provider
may restrict the amount you can transfer
per day, but currently many of the savings
accounts available through Raisin allow up
to 56 days to make your deposit.
A final word
Currently Raisin UK has access to some
competitive fixed rate bonds, especially if
you take into account the welcome bonus
(remember you need to claim this to receive
it!), so it is definitely worth a look, if you’re
happy to tie your money up for the term.
These offers will change, so you’ll need to
keep an eye on how they compare with
the wider market.
29
Call us free on 0800 011 9705 with your savings queryAn introduction to Cash Savings Platforms
Save time,make money
Earn up to 2.68% AER on fixed term deposits at our brand
new UK savings marketplace.
Find out why over 160,000 savers across Europe have opened savings
accounts through Raisin.
To speak to our Customer Services Team, call 0161 601 0000Monday to Friday (exc. Bank Holidays) 8:30 am - 4:30 pm.
* Terms and Conditions apply. Claim up to £100 for funding your first fixed term deposit
through the Raisin UK savings marketplace.Visit raisin.co.uk/bonus to find out more.
Visit raisin.co.ukto discover more about the
Raisin UK savings marketplace.
protectedRaisin UK saving products are eligible for FSCS/European Deposit Guarantee Schemes protection.
Raisin UK is a trading name of Raisin Technology Limited which is an appointed representative of Resolution Compliance Limited (FRN: 574048) which is authorised and regulated by the Financial Conduct Authority. Raisin Technology Limited is registered in England and Wales, No 09902685. Registered office: c/o Withers LLP, Third Floor, 20 Old Bailey, London, United Kingdom, EC4M 7AN.
up to
£100bonus*
Contact usSavings Champion
Cambridge House
Henry Street
Bath
BA1 1BT
Telephone: 0800 011 9705
Email: info@savingschampion.co.uk
Website: www.savingschampion.co.uk
Company Registration Number: 07805574
Registered Address: Savings Champion, No 2 The Bourse, Leeds, LS1 5DE
January 2019