an introduction to cash savings platforms · some in joint, if you’d prefer. in fact, some...

An introduction to Cash Savings Platforms

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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

54

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


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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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.


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.

12 13


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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.

15


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%



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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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.

19


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.


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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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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.


22


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.



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.

23



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.


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.


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



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.



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.


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


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 [email protected],

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%.


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.


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


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: [email protected]

Website: www.savingschampion.co.uk

Company Registration Number: 07805574

Registered Address: Savings Champion, No 2 The Bourse, Leeds, LS1 5DE

January 2019

an introduction to cash savings platforms · some in joint, if you’d prefer. in fact, some...

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