Modern Savings

High Street Banking and Savings have moved online.

As high street branches of banks and building societies close operating saving accounts has moved online. Many traditional operators have no physical presence and transactions, whether in banking or saving, are now conducted via the internet.

This means a separate security log in for each of your providers and involves  considerable effort comparing products and rates.

Your Investment Platform as Your Master Savings Account

Several investment platforms now offer a saving facility alongside their investment hub. With one secure login you can conduct all your saving tasks. Thereby eliminating the need for separate savings accounts with different organisations.

The following information is based on the practical use of one website. Each platform may be slightly different in its operation, layout, and the products available, but the principals are the same.

Investment platform ‘savings hubs’ offer a range of tax-free cash isas together with fixed term and instant access savings accounts. Before opening any investment platform, check if they offer a savings facility.

Then, with one login, you will then be able to look at and select from a  range of savings options. The savings platform will have a menu which provides detailed information on all the accounts they offer. Each product on offer will set out all the information you need to make your decision.

Cash Isas. Two options are available.

Fixed rate term accounts and instant access accounts. Each account shows the provider and the interest rate. Fixed rate term accounts also show the term and redemption date.

Savings accounts. The same two options are also available but without the tax-free advantage of a cash isa.

Fixed rate term account options. Cash Isa’s and savings accounts are available for a range of set durations usually for 1 month up to 2 years. These products allow you to have a fixed rate of interest paid for the duration of the term.

Term savings account redemption. On this date your deposit plus the interest earned will be transferred to your Cash Hub for you to withdraw or transfer all or part to a new product.

Term cash isa account redemption. Ahead of the redemption date you will be invited to select another Cash Isa to roll your savings into in full, or in part, withdrawing the balance to your nominated bank.

FSCS Guarantee*. The FSCS is a government body charged with protecting consumer saving deposits. Each provider listed on your savings platform will be covered by the government’s FSCS guarantee up to £120,000 per banking licence. The platform provider has negotiated the terms with each provider and earns a commission on the sums invested. *Financial Services Compensation Scheme.

Using the Savings facility

As prefaced you can hold cash isas, and both instant access and fixed term savings products in your account. Consider possibly setting up a series of fixed term savings products each maturing on different dates. This will allow you to have in effect the dual advantages of quick access with a fixed rate of return.

Getting started

To start the process, visit Investment Platform websites such as Hargreaves & Lansdown, A J Bell and Interactive Investor who have embedded savings facilities within their structure. See how they operate this facility and the range of products and rates currently offered.