What is a cash deposit platform?
Cash deposit platforms are becoming a more popular way to manage savings. They have a number of benefits – explained here.
This article is not advice. If you would like to receive advice on your savings and investments, consider speaking to a Financial Adviser.
All you need to know about cash deposit platforms – and their many benefits.
Cash, uncomplicated
Cash deposit platforms (also called ‘cash savings platforms’, ‘cash management services’, or ‘savings marketplaces’) are online tools that let you open and manage multiple savings accounts from multiple banks. All with one application.
Take Flagstone, for example. We partner with 60+ banks to put 200+ savings accounts on a single platform. These include:
This way, you can create an entire cash portfolio in one place, and manage it with one password. Which ultimately makes it easier for you to protect and grow your cash.
Let’s look at those benefits in more detail.
All the benefits of cash deposit platforms
Show your cash more interest
The process of opening new savings accounts is often full of checks and roadblocks. Queries and questionnaires. These barriers often prevent time-poor people from moving their cash into high-interest savings accounts.Instead, billions of pounds in UK savings now languishes in low-interest accounts. But cash deposit platforms like Flagstone make it easy to maximise interest on your cash. They do so in two ways:
1. Effortless process
With a cash deposit platform, opening and managing savings accounts is much easier. As you only need to complete a single application to access every account on the platform, there are fewer barriers to moving your cash.That means higher interest is only ever a couple of clicks away.
2. Exclusive rates
Some cash deposit platforms will use their strong relationships with their bank partners to secure special and exclusive rates. They’ll also send you regular email updates to let you know when new, competitive rates are available.
Diversify your savings, effortlessly
Most cash deposit platforms let you filter hundreds of savings accounts, to quickly find the right options for you. It might be a Fixed Term account with high interest, or perhaps an Instant Access account for your rainy day fund.
Whatever your plan, these platforms make it easy to find and open the accounts that suit you best. You can also sort the savings accounts on Flagstone by:
- account type
- interest rate
- FSCS protection
- term length (for Fixed Term accounts)
This gives you the flexibility to build a cash portfolio that suits your unique needs.
Protect what’s yours
Whether you’re managing your own cash, or that of a business, it’s vital your funds are protected. But the Financial Services Compensation Scheme (FSCS only covers £85,000 per individual per banking group (or £170,000 for joint accounts).
That means you may have to open multiple accounts with different banking groups to protect all your cash.
That would usually require you to complete multiple applications, track maturities in different places, and remember a handful of passwords. But a cash deposit platform simplifies the entire endeavour, by bringing it all under one roof. You’ll be able to open as many accounts as you need with one application, and manage them all with one password.
Get one clear view
Most cash deposit platforms will have some kind of ‘dashboard’, where you can see a summary of all your savings accounts at a glance. This will usually tell you:
- which savings accounts you have open
- the interest rate they’re earning
- term length (for Fixed Term accounts)
- interest accrued on each account so far
This gives you a snapshot of your cash portfolio, making it easier to manage. It also means that you can move your cash quickly if anything changes (say a rate decreases, or the term ends on a Fixed Term account).For more on the benefits of cash deposit platforms, see our full guide.
How cash deposit platforms work, in three steps:
1. Apply to your chosen cash deposit platform (like Flagstone)
With cash deposit platforms, you only need to complete one application to open as many savings accounts as you like. You’ll need to provide a few basic details, as well as some information about the source of your funds. This helps to keep cash deposit platforms secure, and your cash safe.
2. Fund your account
Most cash deposit platforms will use a ‘holding account’, ‘hub’, or ‘wallet’, which you’ll need to fund once you’ve opened your account. From here, you can deposit into as many savings accounts as you choose.
In Flagstone’s case, your holding account is provided by HSBC, and is FSCS-eligible. Cash deposit platforms don’t make any decisions for you – you’re free to deposit your funds wherever you choose.
3. Choose your savings accounts
Sort, filter, and find the savings accounts that suit your goals. Whether it’s Instant Access, Fixed Term, Notice, or a mix of all three, the choice is yours. Open as many as you like, without filling out multiple applications.
A perspective from Simon Merchant, Flagstone Co-Founder & CEO:
“Interest rates have rebounded from the lows of years past, and cash is back on the map. But it’s still too complex to move and grow your funds. Every form is an obstacle. Every requirement a roadblock.
“Platforms like Flagstone provide the answer. With Flagstone, 600,000 clients can open and manage hundreds of savings accounts from 60+ banks. All in one place, with one password, and a single application.”
Join Flagstone, and never apply for a savings account again.
