savings

Octopus launches savings platform offering 1% interest




Clients of financial advisers have been given the chance to almost double their savings rate through a new platform developed by Octopus Labs.

Octopus Cash has teamed up with a number of challenger banks to create a one-year savings account designed to give customers better returns on their savings.

Both OakNorth Bank and Cambridge & Counties have been included on the platform’s roster, with the product offering those looking to deposit £50,000 or more in a one-year, fixed term account a rate of over 1%.

This is nearly double that of the average high street savings rate, which currently stands at 0.55%.

The launch comes after the Financial Services Compensation Scheme (FSCS) increased its deposit protection limit to £85,000 per bank this week.

Octopus Cash will also allow savers to spread larger deposits across three challenger banks and, therefore, benefit from £255,000 of FSCS cover, provided they don’t already have positive account balances with any of them. 

“…In today’s times of low interest rates and rising inflation, finding an easy way to get the best rate has never been more important,” said Sam Handfield-Jones of Octopus Cash. 

“That’s why we created Octopus Cash: a simple, efficient and tech-enabled product that could let savers double their interest rate and triple their savings protection – with a third of the hassle. 

“Saving just got a whole lot smarter.”

Rachel Curtis, chief customer officer of Cambridge & Counties, felt Octopus Cash was a smart way for savers to get their money working harder, with minimal effort.

“While we like to think our own application process is quick and simple, we understand the pain for customers with larger balances of opening multiple bank accounts, and know that many never quite get round to doing it. 

“We’re thrilled to be working with Octopus to help savers find better rates more easily, with maximum FSCS protection.”

Joel Perlman, founder of OakNorth Bank, added that with inflation on the rise and interest rates stuck at record lows, savers needed better solutions.

“This is a great opportunity for banks like ours to offer savings products to a broad range of savers who will undoubtedly benefit from Octopus Cash’s offering, which includes better rates than the high street, FSCS protection and reduced hassle.”

How does it work? 

Savers will only need to open one Octopus Cash account, which will allocate cash to banks as follows:

•    Less than £85,000? Octopus Cash will deposit all of the cash with the challenger bank paying the best rate
•    More than £85,000? Cash will be deposited in chunks of £85,000, from the highest to the lowest rate on offer
•    More than £255,000? Clients can save more if they choose – but the excess won’t be covered by the FSCS. 

At the end of the one-year term, savers can choose to roll-over into the new best rate automatically or withdraw. However, Octopus Cash is only available through financial advisers.

Saving with Octopus Cash is free to clients, other than any fees they might agree to pay their adviser.

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