Saga launches new savings platform that lets savers split cash across fixed deals from TWENTY banks
Saga launches new savings platform that lets savers split cash across fixed deals from TWENTY banks
- Saga Savings Platform launched in partnership with cash deposit firm Flagstone
- Holding savings in one place can reduce the amount of paperwork needed
- Savers with large nest eggs can use platform to deposit among different banks
Over-50s specialist Saga has launched a savings platform which allows customers to apply for, and manage multiple fixed-term savings accounts in one place.
Customers can hold accounts with more than 20 savings providers, with term lengths varying between one month and seven years.
The Saga Savings Platform, launched in partnership with online cash deposit firm Flagstone, is the latest project in Saga’s bid to become a ‘superbrand’ for older people in the UK.
Holding savings in one place can help to reduce the amount of paperwork needed to open and manage multiple new bank accounts, Saga says.
Savers with large nest eggs can use the platform to deposit their money among different banks, ensuring that each of their accounts keep the protection of the Financial Services Compensation Scheme.
The Saga Savings Platform, launched in partnership with online cash deposit firm Flagstone, is the latest project in Saga’s bid to become a ‘superbrand’ for older people in the UK
Under the scheme, you can hold up to £85,000 with a bank or building society and be protected should the provider go bust.
Accounts can be opened online, by phone, email or post and customers must have a minimum of £40,000 to be eligible.
There are no fees to use the platform but Flagstone receives a share of the interest from the partner banks.
This may mean that the rates available are lower than they would be if you go directly to a provider.
Anna Bowes, of rates monitor Savings Champion, says: ‘Savings platforms can offer convenience, especially if you are depositing large sums, but it’s worth shopping around to find a provider that meets your needs.
Just because a product is marketed for the over-50s doesn’t necessarily mean that it is the best option for you.’
Among the best rates on offer is a 12-month fixed-rate saver from SmartSave which has an interest rate of 5.86 per cent.
A saver who deposited £40,000 into this account on the Saga platform would earn £2,344 in interest after one year.
But if the same saver opened the account with SmartSave directly, they could earn 5.99 per cent on their nest egg. It would mean they would have £2,396 in interest after one year – an extra £52.
Customers who open an account directly with SmartSave are able to have a lower deposit minimum of £10,000, which may be more suitable for those who have less in cash savings to draw upon.
The top one-year fixed rate account on the market is from Al Rayan Bank and pays 6.12 per cent, according to rate scrutineer MoneyfactsCompare.
This is not available on the Saga Savings Platform.
Access: The new Saga accounts can be opened online, by phone, email or post and customers must have a minimum of £40,000 to be eligible
The platform’s £40,000 minimum deposit requirement also puts savers at risk of needing to pay tax on their savings.
Basic-rate taxpayers can earn up to £1,000 a year in interest tax free.
For higher-rate taxpayers, it’s £500 and additional rate taxpayers pay tax on all of the interest they earn from a savings account.
The platform does not offer cash Isas, which are often popular with customers who have high savings balances. This is because they allow savers to pay in up to £20,000 a year tax free.
Alex Edmans, head of financial services at Saga Money, says: ‘We have created a platform that simplifies the savings process by providing a curated range of fixed-rate options, accessible through a single website and account, underpinned by exceptional customer service.’
- For more information, visit saga.co.uk/money/savings/ saga-savings-platform or call 0800 092 3398.
Check the best cash Isa rates in our savings tables
