From inertia to excellence – could your clients’ cash be working harder?

When clients – and advisers – think about investing, cash can often be left out of the equation for a number of reasons. The result means cash deposits can be left sitting idle and untouched in a high street bank account offering little interest or reward for loyalty.

We look at the inertia surrounding cash and why you may be missing a golden opportunity to boost your clients’ interest income.


The security blanket of large cash sums

Your client’s cash deposits are unlikely to be the first thing you think off when it comes to advice. But the reality is your clients will always hold cash savings.

Cash brings security and peace of mind. While other investments can rise and fall at the slightest global imbalance, cash ticks quietly along in a high street account, largely untouched by world events. It provides both a protective buffer and the liquidity of a money pot, ready to be dipped into in an emergency.

Cash sums may also be increased following a sudden windfall, such as an inheritance, the sale of a business or a house sale. Or it may be a more short-term arrangement, held ready to fund a large expense, such as paying a tax bill, buying a business, or home renovations.

Whatever the reason, there is no getting away from the fact this money typically sits idle – a missed, tangible opportunity for you and your clients to make their cash work harder, and grow their interest income.


The inertia fuelling the status quo

So given the huge opportunity cash represents, why is the status quo so difficult to break?

One reason for this ongoing inertia is a combination of loyalty and a lack of awareness. People can stay with a bank for their entire lives. This easy familiarity and comfortable relationship assumes their bank will do their best to look after them and their money. If the expectancy is that their bank will offer the best interest rates available – however low – people are unlikely to dig deeper. And with cash often falling off the radar during investment conversations, this leads to a lack of awareness of what else is actually out there.

Another reason is that people are increasingly time-poor. Even those who know they can probably get a better interest rate elsewhere may lack the time to thoroughly research the bank or the products on offer. When you also factor in the often complex hassle involved in switching savings, there is little wonder people prefer to stick rather than twist – even when the returns are disappointing.


Harnessing technology can unlock billions in interest

A 2019 study revealed the inertia plaguing the UK savings market had left a colossal £1.3 trillion of household savings sat in lower-paying, high street accounts. The cure – according to several senior industry figures – is technology, particularly cash deposit platforms.

By harnessing the power of fintech, clients can quickly and easily shop around for the best rates across a wide range of bank accounts – potentially unlocking billions of pounds in interest.

As an example, while high street instant access accounts can pay as little as 0.25% annual interest, clients using Flagstone’s cash deposit platform can take advantage of instant access accounts offering a huge 11x more interest (at 2.90% per annum). For clients willing to lock in for one year, the potential returns are also impressive. Flagstone’s 12-month fixed-term account offers rates of 4.46% – more than double some high street rates.


Unlocking the power of your clients’ cash

Cash available to invest = £100,000


Current interest rate


Annual interest


High street instant access*



Flagstone instant access



High street 12-month fixed term**



Flagstone 12-month fixed term




The benefits of a cash deposit platform

For clients with over £85K hibernating in a high street account, the ability to diversify funds and increase FSCS protection can also be a useful tool to tackle the inertia around cash.  A cash deposit platform allows them to effortlessly spread their cash deposits and potentially protect every penny – enhancing the security already offered by their cash.

Supporting your clients to release the power of their cash savings also helps you grow your income and business. The added availability of a cash deposit platform in your arsenal enables you to advise on your clients’ complete investment portfolio. This increased offering enhances your relationship and builds trust, helping you both retain your existing clients, and attract new business.


About Flagstone

Flagstone is the UK’s leading cash deposit platform offering your clients access to 40+ savings accounts – including market-leading and exclusive rates – through their own Flagstone account.

Following a single application, our easy-to-use platform allows them to place and switch their cash deposits effortlessly – 24/7 – providing hassle-free, complete control of their cash.

To find out more about how Flagstone can make your clients’ cash work harder and help you grow your business, please get in touch with us.


* Barclays
** NatWest



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