- Charles Stanley Direct has launched a cash savings platform
- Savers can open an account with a minimum of £1
- Savings platforms have been gaining popularity with rapid rate movements
Charles Stanley Direct is the latest provider to launch a savings platform, This is Money can reveal.
Its savings platform, Cash Savings, is powered by Bondsmith and savers can open an account with a minimum investment of £1.
Cash Savings will offer savers a variety of savings accounts: easy access, term and notice accounts.
The savings platform launches with a fixed term rate of up to 5.95 per cent with Ahli United Bank and 4.5 per cent on an easy-access savings account through GB Bank.
You can have all your eggs in one basket with savings platforms, as they allow you to have multiple savings accounts in one place.
A number of providers have launched savings platforms in recent months, including over-50s specialists Saga and Savings Champion.
Charles Stanley’s Rob Morgan says the launch of Cash Savings is a “symptom of the times”.
He says: “If you go back 18 months, there wasn’t much difference between getting an account with competitive interest rates and earning nothing, as interest rates were so low.”
‘But there has been a step change and savers have the opportunity to make the most of their cash through some of the best interest rates for 15 years.
“This opportunity is here to stay for at least the next year as rates stabilize and we believe access to savings platforms will help savers take advantage of it.”
Cash Savings from Charles Stanley Direct is billed as a one-stop shop, allowing savers to access some of the most competitive savings rates on the market through a single online account.
With key savings rates changing rapidly as the Bank of England’s base rate decision looms, getting the best deals takes time and legwork.
Savings platforms are gaining popularity because they are seen as making it easier to stay on top of the best savings accounts. They are websites that allow you to have multiple savings accounts in one place.
The benefit is that you can have multiple savings accounts with multiple providers in one place, accessible through one portal.
John Porteous, managing director of Charles Stanley Direct, says: ‘The period of ultra-low interest rates that lasted much of the last decade offered little opportunity for savers to improve their position.
‘But now that the Bank of England’s base rate is above 5 per cent, effective savings management can make a significant difference.
“Many large banks have typically been slow to pass on rate increases to savers and have not done so in full.
‘The best way for cash savers to take advantage of today’s higher rates is to use a savings platform to secure highly competitive interests and easily move between offers and account types from different banks as rates change and needs evolve .
There is no fee for using Cash Savings, but Bondsmith keeps 0.1 for each Cash Savings rate cut.
The minimum deposit amount of £1 is low compared to other savings platforms that have launched recently.
Customers must have a minimum of £40,000 to open an account on the Saga Savings platform and £50,000 to open an account on the Savings Champion platform.
Morgan says: ‘These platforms are designed for higher net worth savers. We wanted to give as many people as possible the option to save with us, so you only need £1 minimum.’
For those with larger amounts to deposit into savings accounts, a key advantage of using a savings platform is the spread of FSCS protection afforded to each individual banking licence.
The Financial Services Compensation Scheme (FSCS) is the UK’s deposit guarantee scheme, offering protection of up to £85,000 per person or £170,000 in the case of joint accounts with each eligible bank or building society in which they register.
By allowing savers to access more than one provider, savings platforms allow them to spread FSCS protection across their multiple holdings.
For example, if they saved in six different banks, all covered by the FSCS on the platform, they would be protected up to £85,000 in each account, regardless of any additional funds they might hold in the bank separately outside the platform.
You can access Cash Savings through the Charles Stanley Direct login; you will need to have an account.