Saga lets savers split cash across fixed deals from TWENTY banks
Saga has introduced a fresh savings platform that enables savers to divide their money among fixed deals offered by a total of twenty banks.
- Saga Savings Platform launched in partnership with cash deposit firm Flagstone
- Consolidating savings in a single location can minimize the required paperwork.
- Individuals with substantial savings can utilize the platform to distribute their deposits across multiple banks.
Saga, a company that specializes in serving individuals over the age of 50, has introduced a savings platform that enables customers to conveniently apply for and oversee several fixed-term savings accounts from a single location.
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.
Saga suggests that consolidating savings into a single account can minimize the paperwork required for opening and maintaining multiple new bank accounts.
Individuals who have accumulated substantial savings can utilize the platform to distribute their funds across multiple banks, guaranteeing that each of their accounts remains safeguarded by 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 this plan, you have the option to deposit a maximum of £85,000 with a bank or building society and receive protection in the event that the provider becomes insolvent.
Customers can open accounts through various channels such as online, phone, email, or post. To qualify, they need to possess a minimum of £40,000.
Using the platform incurs no charges, however, Flagstone does receive a portion of the interest earned 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, from Savings Champion, a company that monitors interest rates, suggests that savings platforms can be convenient, particularly when depositing significant amounts of money. However, it is advisable to explore different options to find a provider that suits your requirements.
Being marketed towards individuals over the age of 50 does not automatically imply that it is the most suitable choice for you.
One of the most attractive rates available is a 12-month fixed-rate savings account offered by SmartSave, with an interest rate of 5.86 percent.
After one year, a person who saved £40,000 in this account on the Saga platform would receive £2,344 as interest.
However, if the saver chose to open the account directly with SmartSave, they would be able to earn a 5.99% interest rate on their savings. This would result in a total interest of £2,396 after one year, providing an additional £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.
According to rate scrutineer MoneyfactsCompare, Al Rayan Bank offers the highest interest rate of 6.12% for their one-year fixed rate account, currently leading the market.
This feature is not accessible 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
Savers may be at risk of having to pay tax on their savings due to the platform’s minimum deposit requirement of £40,000.
Individuals who fall under the basic-rate taxpayer category have the opportunity to earn a maximum of £1,000 annually in interest without being subject to taxation.
Higher-rate taxpayers are subject to a tax of £500, while additional rate taxpayers are required to pay taxes on the entirety of the interest they receive from their 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, the financial services leader at Saga Money, explains that they have developed a platform that makes saving easier. This platform offers a carefully selected variety of fixed-rate choices, all available on one website and account. Additionally, they prioritize providing outstanding customer service.
- For more information, visit saga.co.uk/money/savings/ saga-savings-platform or call 0800 092 3398.
Please review the highest interest rates for cash Isa accounts in our savings tables.
