Flagstone clients can take advantage of recovering market as interest rates rise

After nearly 18 months of on-and-off lockdowns, the UK has become a nation of ‘accidental’ savers.

With government restrictions having significantly curtailed holiday travel, dining out and commuting costs for many since March last year, UK household deposits increased by 20% [1] in the 18 months to August 2021. The additional £222bn that was saved and not spent during that period increased household deposits with UK banks and building societies to £1.33 trillion [1], with a staggering £245 billion of that sum held in accounts paying no interest [2].

This significant increase in deposit volumes, compounded by the Treasury’s decision in December to extend its Term Funding Scheme [3], reduced competition between banks for retail deposits. This had a negative impact on interest rates, with Bank of England data showing the market average instant access deposit rate falling from 0.39% to 0.07% in the 18 months to August [4], and the one-year fixed-term deposit rate market average declining from 0.97% to 0.26% [5].

Over that period, Flagstone clients (with 24/7 access to more than 200 deposit accounts from up to 51 banks and building societies) were able to benefit from one-year fixed-term deposit rates which tracked at 3x above the market average and instant access deposit rates which tracked at 9x the market average.

As the market recovers and deposit rates start to rise, the Flagstone platform now offers clients the opportunity to lock in a 1.40% rate for a One-Year Fixed-Term Deposit [6] for the first time since June 2020.

With interest rates also now increasing for shorter-term and variable-rate deposits, ‘accidental’ savers with sums accrued over the last 18 months earning little or no interest should be pro-active, as the cost of inertia will begin to rise in the coming weeks and months.

Flagstone clients have the advantage of being able to quickly and easily compare over 250 instant access, notice and term deposit accounts from up to 51 banks [7].  Using the UK’s leading cash deposit platform [8] they can move their money to FSCS protected [9] products offering new, exclusive and market-leading rates in seconds, with a mouse click or phone tap, meaning that they’re in the best possible position to take advantage of this prevailing tide of rising rates – growing and protecting their cash today, so that they can plan for tomorrow with confidence.

Simon Merchant, Flagstone Co-Founder and CEO commented:

“Deposit rates have faced significant headwinds over the past 18 months, but during that time the Flagstone platform has continued to demonstrate its value to clients by enabling them to access rates tracking at multiples of the market average. 

"Instant access deposit rates available on the platform enabled clients to earn 9x more interest than the market average and they benefitted from access to 518 exclusive rates from our 51 partner banks.  Now that rates are rising, the platform puts them in the driving seat in terms of being able to take advantage of new, exclusive and market-leading rates as soon as they become available.”


[1] Bank of England data [LPQZ3TT, LPQB5S9, LPMZOD5]

[2] Bank of England data [LPQB5S9]

[3]Source: Bank of England - Bank of England Term Funding Scheme Drawdown Period will run until 31 October 2021 (extended from 30 April 2021) and Reference Period will run from 31 December 2019 to 30 June 2021 (extended from 31 December 2020).

[4] Bank of England data [IUMWTFA]

[5] Bank of England data [IUMB6VK]

[6] Correct as at 20 September 2021.

[7] Different banks, accounts and rates will be available to you on the platform dependent upon whether you are an individual, looking to open a joint account, or acting on behalf of a company, charity, trust, SIPP or SSAS. The number of accounts available to clients may also be reduced dependent upon their domicile, residency and other factors. 

[8] As at 20 September Flagstone provides the greatest choice of banks and deposit products of any UK cash deposit platform.

[9] For further information, refer to the Financial Services Compensation Scheme (FSCS) deposit protection limits.


This article is not advice. If you would like to receive advice on your savings and investments, consider speaking to a Financial Adviser.



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