Saga launches new savings platform that lets savers split cash across fixed deals from TWENTY banks

Saga, a specialist for over-50s, has launched a savings platform that allows customers to apply for and manage multiple fixed-term savings accounts in one place.

Customers can have accounts with more than 20 savings providers, with terms ranging from one month to seven years.

The Saga savings platform, launched in partnership with online cash deposit firm Flagstone, is the latest project in Saga’s bid to become a “superbrand” for older people in the UK.

Keeping savings in one place can help reduce the amount of paperwork needed to open and manage multiple new bank accounts, Saga says.

Savers with large savings can use the platform to deposit their money between different banks, ensuring that each of their accounts maintains the protection of the Financial Services Clearing System.

Under the scheme, you can keep up to £85,000 in a bank or building society and be protected if the provider goes bankrupt.

Accounts can be opened online, by phone, email or post and customers must have a minimum of £40,000 to be eligible.

There are no fees to use the platform, but Flagstone receives a portion of the interest from partner banks.

This may mean that the available rates are lower than they would be if you went directly to a provider.

Anna Bowes, of rates monitor Savings Champion, says: ‘Savings platforms can offer convenience, especially if you deposit large sums, but it’s worth shopping around to find a provider that meets your needs.

Just because a product is marketed to people over 50 doesn’t necessarily mean it’s the best choice for you.’

Among the best rates on offer is a 12-month fixed rate savings from SmartSave which has an interest rate of 5.86 per cent.

A saver who deposited £40,000 into this account on the Saga platform would earn £2,344 in interest after one year.

But if the same saver opened the account with SmartSave directly, they could earn 5.99 percent on their savings. It would mean they would have £2,396 in interest after a year – an extra £52.

Customers who open an account directly with SmartSave can have a lower minimum deposit of £10,000, which may be more suitable for those who have less cash savings to draw on.

The top one-year fixed rate account on the market is from Al Rayan Bank and pays 6.12 per cent, according to rates expert MoneyfactsCompare.

This is not available on the Saga savings platform.

Access: New Saga accounts can be opened online, by phone, email or post and customers must have a minimum of £40,000 to be eligible.

The platform’s £40,000 minimum deposit requirement also puts savers at risk of having to pay tax on their savings.

Basic rate taxpayers can earn up to £1,000 a year interest-free.

For higher rate taxpayers it’s £500 and additional rate taxpayers pay tax on all the interest they earn from a savings account.

The platform does not offer cash Isas, which tend to be popular with customers who have large savings balances. This is because they allow savers to pay up to £20,000 a year tax-free.

Alex Edmans, head of financial services at Saga Money, says: “We have created a platform that simplifies the savings process by providing a curated range of fixed rate options, accessible through a single website and account, backed by a service to the exceptional client”.

a.cooke@dailymail.co.uk

• For more information, visit saga.co.uk/money/savings/ saga-savings-platform or call 0800 092 3398.

Check the best cash Isa rates in our savings tables