What is a savings platform?
What is a savings platform?
Like a concierge service for your cash, savings platforms are websites that work with a selected number of banks and building societies and help source savings accounts for you.
This means you're saved the job of having to shop around for the best rate, and can sometimes find exclusive accounts that aren't available elsewhere.
Savings platforms are becoming increasingly popular, especially as they sometimes top the tables on comparison sites.
Once you're registered, you'll only have one set of login information to remember, and - to ensure your savings don't languish in a low-paying account - the platform will usually get in touch to remind you when any bonds are due to mature.
This guide explains how savings platforms work, whether or not they offer a good deal, and which companies are now offering this service.
Savings platform providers compared
The table below gives an overview of what each provider offers; we go into more detail below. Rates last updated 15 April 2024.
| Savings platform | Platform fee | No. of providers | Minimum deposit | Top rate on a one-year bond | Top rate on a three-year bond |
|---|---|---|---|---|---|
| Akoni Cash Management | Up to 0.25% | 17 | Varies | n/a | 4.3% |
| Aviva Save | None | 5 | £1,000 | 4.9% | n/a |
| Flagstone | None | 60+ | £10,000 | 4.88% | 4.65% |
| Hargreaves Lansdown Active Savings | None | 16 | Varies | 5.10% | 4.65% |
| Insignis | Up to 0.25% | 45+ | Varies | 5.16% | 4.65% |
| Interactive Investor Cash Savings | None | 25+ | Varies | 4.91% | 4.4% |
| Raisin UK | None | 30+ | £1,000 | 5.95% | 4.65% |
To see how these rates compare to those available on the open market, check out our guide to the best savings accounts.
What are hub accounts and why do they matter?
Each of the savings platforms we've featured here uses a 'hub account'.
This is where your money is stored during the times when it's not deposited in a savings product.
When you first sign up to a savings platform, you'll likely have to transfer money into your hub account before it's then deposited into the savings account of your choice.
If you have a fixed-term account, the cash will then be sent back to the hub account once the term has finished, before being sent to an account elsewhere.
Hub accounts won't usually pay any interest, so you won't want to leave your money sitting in there for long or else it will lose value.
As savings platforms themselves aren't banks, they should have hub accounts held by a registered bank - for instance, Hargreaves Lansdown has a hub account with Barclays.
It's important to check the provider of your hub account is covered by the Financial Services Compensation Scheme (FSCS), in case anything goes wrong while your money is held there.
If you have money saved separately with the hub account provider - for example if you use Hargreaves Lansdown's savings platform and also have a Barclays savings account - make sure the total amount held doesn't exceed £85,000, as this is the maximum amount you're covered for by the FSCS.
Savings platform pros and cons
Pros
- You should only have to register your details once.
- You're prevented from earning low interest rates.
- There's less shopping around for a new account.
- You'll sometimes get access to exclusive accounts.
Cons
- You may not be covered by the FSCS.
- The platform won't cover the entire market, so better rates may be available elsewhere.
- Minimum initial deposits are usually at least £1,000.
- Rates are often lower than if you were to go direct.
The main advantage of savings platforms is convenience: you save time by only registering your details once, and will be reminded when your fixed-term bond is coming to an end.
Occasionally, you'll also be able to access exclusive savings rates that are better than others on the market - but this is a rarity.
As many savings platforms charge providers for featuring their accounts and signing savers up with them, the money the bank has to pay is often reflected in a slightly reduced AER.
The minimum deposit should also be a consideration: savers with smaller pots may find they're unable to save with any savings platform.
Lastly, the issue of whether your cash is covered by the FSCS is arguably the most important. All providers we've featured have plans in place to make sure your money is protected.
- Find out more: how to find the best savings account
What if you have a dispute about your savings?
As you will have applied for and opened an account via the savings platform, the platform itself tends to be the port of call if you're unhappy with your account. Each platform will have its own internal complaints procedure.
If you can't reach a resolution you're happy with, you may be able to take your complaint to the Financial Ombudsman Service (FOS). You can get in touch by phone, online or by post and your complaint will be reviewed.
If your savings provider goes bust, you may be covered for compensation by the FSCS.
Does the FSCS cover savings platforms?
Usually, when you deposit money into a savings account, your funds of up to £85,000 will be covered by the Financial Services Compensation Scheme in case the bank goes bust. But when you save via a savings platform, things can get a little more tricky.
If deposits are held in your name, or on trust, where you remain absolutely entitled to the funds, you could still claim up to £85,000 in compensation.
However, if the savings platform itself fails - as opposed to a bank or building society - the FSCS says they generally won't be able to compensate, as the service provided by the savings platform is not a regulated activity.
For this reason, it's important to check whether the savings provider will hold your cash, and whether it's covered by the FSCS if anything should go wrong.
All of the providers mentioned in this guide have confirmed that money is always held in accounts covered by the FSCS or an EU equivalent - that's whether it's held in a savings account or a 'hub account' provided by a UK bank on behalf of the savings platform.
- Find out more: FSCS: are my savings safe?