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With people saving more than ever investors need to ensure they’re not missing out

28/08/20 Guest Blogs

They say ‘Cash is king’.

But do we make the most of it? You probably have much better things to do than chase slightly better cash savings rates. 

The good news is, recent advances in technology have made it remarkably simple to enhance your cash returns and help manage your savings. Using a cash management service is an easy way to earn better rates and get more Financial Services Compensation Scheme (the FSCS) coverage. 

An easy win

Most of us feel we could (and probably should) be making our cash work harder. The most popular place we go when choosing new savings accounts is our existing bank. 

But we often:

  • Feel powerless and frustrated by low interest rates
  • Lack awareness about the way savings rates can change after they open an account
  • Do not feel confident about shopping around and switching to a better deal
  • Feel it’s just too much hassle

But what if you could take all the hassle away?

Now you can. And with Octopus Cash your adviser can help. 

How it works

Octopus Cash allocates your money to one or more banks that offer a competitive savings rate. This allows your adviser to manage all your assets more effectively.

We partner with a number of challenger banks who offer top tier rates. You simply create one account, with a single application. The FSCS will pay compensation in the unlikely event a bank you save with stops trading. All the authorised banks and building societies we use have a compensation limit, for eligible deposits, of £85,000. 

Choose how long you want to deposit for and once the term is up, we automatically contact you with the latest rates available without the need to shop around. Your adviser can set this up for you using one simple form online or by post.You don’t have to open multiple accounts at lots of different banks nor will you be contacted by the banks directly, saving you time and paperwork. 

Investors are saving more

Many investors have responded to the large amount of uncertainty inflicted by coronavirus by saving more – the Bank of England recently reported an extra £30bn was saved in March and April 2020 with another £25.5bn saved in May.

However, most savers aren’t getting a good return on it. A lot of the money went into instant access accounts, many of which are paying just 0.01% (In fact, on 29 July Barclays became the last giant high street bank to cut its instant access savings rate to 0.01%).

And by using Octopus Cash you can without the hassle. Plus it helps your adviser get a better idea of your overall position, making this a good starting point for advising on your other investments. 

To see how easy it is to get your cash working harder, speak to your adviser.

The key benefits

  • Maximise FSCS cover with one application. Octopus Cash increases FSCS cover by spreading deposits across multiple banks on your behalf. There is no need to open accounts with multiple banks.
  • Top tier rates. Octopus Cash partners with challenger banks that offer a competitive rate, typically beating the ‘Big Five’ banks
  • A flexible range of terms. 6, 12, 18 & 24 month fixed-term accounts and 35 or 95-day notice accounts are available for individuals, companies, charities and trusts.
  • Simple admin. You only need one account. We deal with all the partner banks on your behalf.
  • No need to switch. When the term is up for an Octopus Cash account, you can easily redeposit at the best rate available.

Some key considerations

Fixed-term accounts – When saving with Octopus Cash fixed-term accounts, there is no access to the deposit before the end of the term (except in mitigating circumstances). 

Existing savings – Only £85,000 of savings at each partner bank will be protected by the FSCS. If you already save with one or of our more partner banks, or choose to do so in the future, money held directly at the banks will be protected ahead of money held with Octopus Cash.

For more information and an idea of the rates available why not give us a call on 0800 043 8341 or email letstalk@fathomfinancial.co.uk

Written by - Jonthan Roseweir, Octopus Investments