The Rise of the Cash Platform
Catherine Alexander
Partner and Mortgage & Protection Adviser at GDA
Most people will be familiar with investment platforms, but what about cash platforms? Many of our clients will have wisely invested any funds they have and do not need to access for five years or more into different investment products including ISAs and Collective Investment Accounts. They may also have a large amount in cash for a number of reasons e.g., proceeds from the sale of a property or an inheritance. But what if there was an easier way to hold your cash and make sure that you are still getting a good return? This is where a cash platform could help.
What is a cash platform?
A cash platform is an online tool that allows users to open and manage multiple savings accounts from various banks using a single application. Unlike comparison sites, cash platforms allow you to manage your money through a single account, so you are able to move your money to a new account if your needs change or a better rate becomes available. Cash platforms usually have a mimimum deposit amount, and this varies from platform to platform..
The Benefits
A good option for people who don't have the time or don’t want to monitor multiple savings accounts. The platform monitors the available rates and provides alerts when your savings account rates are coming to an end so that you are able to move your money to a new rate. You can also instruct your adviser to make changes on your behalf if you wish.
They can help protect your money with the Financial Services Compensation Scheme (FSCS). Your money is spread across a number of providers and so by putting £85,000 with each provider, 100% of your money is protected if anything should happen. Although, you can have more with each provider if you wish.
You benefit from marketing leading interest rates, and you can select the products that best suit your needs and circumstances. The platform can help you assess your liquidity requirements and provide a selection of options e.g., instant access accounts or fixed-period accounts.
Getting Advice
Your financial adviser will be able to help you decide if using a cash platform would be beneficial for you. The platform will charge a fee for this service, but one of the benefits of the platform is that you would be maximising your interest received, therefore it could work out to be more beneficial. Please contact your adviser or a member of the GDA team for more information.
This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice.
