Find out how cash deposit platforms work and the benefits they have for savers.
With the rise of financial technology, cash deposit platforms are becoming a more popular way to manage cash for individuals, businesses, and charities alike. To put it simply, a cash deposit platform is like an online shop for your savings. It is designed to simplify savings, removing the hassle of opening multiple accounts and allowing you to see all your cash in one place.
Otherwise known as a ‘cash savings platform’, ‘cash management service’, and ‘savings marketplace’, a cash deposit platform goes by many names, but the basis is the same – a web-based collection of savings accounts, exclusive only to its clients.
Many savers want to put their money in two or more accounts to meet their financial goals. For example, some may choose to lock a sum of cash away in a fixed-term account to earn a higher interest rate, while the rest sits in an easy access or notice account for a rainy day.
To gain FSCS protection and reduce the risk of any loss, savers with over £85k need to spread their cash across different accounts.
For the avid saver, keeping up with the top interest rates to grow their cash is normally important. Making the most of their savings requires them to have one eye on the market and then transfer their cash when better rates arise.
But the process of searching for suitable accounts, opening accounts, and moving money is laborious and time-consuming. Bank applications, paperwork, passwords, and ID checks put a lot of people off.
And with new rates being launched every week, it’s near-to-impossible to keep up with the changing market. Ultimately savings get put on the back burner and left to languish in high-street accounts.
A cash deposit platform provider works with banks and building societies to bring together a wide selection of savings accounts. This allows the user to pick and choose without having to apply directly to each bank. You simply fill in your details once to gain access to all available accounts.
Once the account matures, you can transfer your money to another account on the platform or withdraw it.
A good provider will regularly notify their clients when new and exclusive rates have launched on the platform so they can act swiftly. They often include a simple dashboard displaying the client’s accounts and the total amount in each.
Having the ability to effortlessly transfer money between accounts means that users can react quickly to new interest rates and make the most of their savings. A cash deposit platform not only saves valuable time, but it makes financial goals more achievable by helping people grow or protect their cash.