Savvy savers are increasingly turning to ‘savings platforms’ in order to manage their funds by offering them easy access to multiple accounts from multiple banks. Also known as ‘savings marketplaces’ or ‘cash platforms’, these platforms make investing your money much easier. Customers need only fill out one application process with the platform itself and can then set up various accounts from a range of banks and building societies without having to contact those individual providers each time.
One such savings platform is Raisin UK, which was established over 10 years ago and now serves over 1.5 million international customers. Raisin offers a range of benefits to its UK customers but, before we look at these in more detail, let’s run through some of the advantages of savings platforms…
What is a savings platform?
In simple terms, a savings platform is a third-party hub that allows its customers to open and save with several different providers. In order to access savings accounts from these various providers you simply sign up with the savings platform and it allows you to invest your funds in multiple accounts, without having to go through a new application process each time.
This means that you can access a wide range of accounts in one marketplace, allowing you to shop around for the best rates through the platform and switch your funds to whatever accounts work best for you. This makes saving easier while giving you more control on how to make your money earn more interest.
How does this increase my savings returns?
By giving you control over your savings, you can keep an eye on the best rates available from the savings platform’s providers and easily move your money to accounts with higher interest rates.
As an example of how switching an account to one with just a single percentage point difference could make to your savings, consider a £15,000 lump sum in a fixed rate bond paying 4%. This would earn you £600 over the term, but the same deposit with a better rate of 5% would earn £150 more in interest.
This difference becomes even more advantageous for those with greater balances. A £50,000 deposit would earn £2,000 in interest in a one-year fixed rate bond paying 4%. But if it sat with a provider paying 5% it could earn £250 more.
Why should I spread my savings across various providers?
Besides being able to manage your savings more closely, across a spread of varying products, if you’re saving more than £85,000 then you can take advantage of increased protection for your savings. If you have money that sits with a provider regulated by the Financial Services Compensation Scheme (FSCS) that goes bust, then the scheme will protect up to £85,000 of your money. As this coverage is per bank or banking institution, then by spreading eligible savings across various banks and building societies the cover is shared, so you can ensure that the scheme protects even more of your money.
Why choose Raisin UK?
Raisin UK allows savers to browse, open and manage accounts with over 30 banks and building societies. To use its services you simply submit your details once when you sign up and select the products you want to save with. When the registration process is completed, you deposit your funds into a Transaction Account and Raisin will take care of the rest. From here you can manage your funds however you choose, accessing the top rates to make your money work harder.
Raisin offers competitive rates for its savers from its no-fee marketplace – it earns intermediary fees from its partner banks which allows you to use its savings service free of charge.
What’s more, you can get a £100 bonus when you register with the code “OFFER100” before 30 September 2024, and fund your first savings account with £10,000 before 15 October 2024 (see terms below).
Raisin is authorised and regulated by the FCA, and only works with banks that are protected by the FSCS or the European equivalent scheme. With a savings platform like Raisin UK your money is safe and secure, allowing you to access great rates without the hassle of endless application forms, multiple log-ins and hidden account fees.
Terms and conditions
You must enter the promo code ‘OFFER100’ available via a promotional link whilst signing up for a new Raisin UK Account (enter this in the ‘promo code’ box) between midday 07/08/24 and midday 30/09/24.
After your Raisin UK Transaction Account has become active, you must then apply for and open a savings account with Raisin UK and successfully fund the new savings account with a minimum of £10,000. Your savings account must be fully funded by 11.59pm on 15/10/24.
If you open a fixed rate bond, the term length must be a minimum of six months. If you open an easy access savings account or notice savings account, you must keep this account open for a minimum of six months with a minimum balance of £10,000 throughout this time.
