Are savings platforms a good idea in this environment

fizio

I did a quick search but couldn't find any recent discussions on savings platforms like Hargreaves/raisin. I have multiple current and savings accounts on zero-ish interest rates and am looking to get the cash into multiple decent savings accounts given the better interest rates now available. I already have a HL account so spotted their 'active savings' platform and, on the surface, it looks like a good idea for those wanting to simplify the management of looking after multiple accounts while also being able to easily switch products.
My limited research seems to suggest the main dis-advantage is a limited amount of accounts to choose from and possible fees but otherwise they are a good way to go. 
I am just looking for feedback before I go down this road - I would like to stay with HL as I have used them before and they are a major financial player while I am less sure about the others in this space as I have never really heard of them.

Thanks

masonic

Going direct to the highest payer usually results in the best rate being obtained. There have been occasional times when Raisin has had an exclusive offer beating non-Raisin providers, but you generally have to be quick of the mark to secure them. It tends to be the same small number of providers that gravitate towards the top of the table, so once you have a relationship with a few of these, it's very easy to open additional accounts when needed.

Bravepants

Also, at the moment, I cannot see anything in HL Active Savings that offers interest paid as monthly income to an account.

For example, Tesco does a 5 year fix at 4.7% with interest paid out monthly, which some people may find more useful

MK62

I use HL Active Savings.......often not the very best fixed rates, but close enough for me, and it saves a lot of time and effort tbh, which is the main attraction really. Having said that, the easy access rates are relatively poor, so a good chunk of our cash is outside HL for that reason.

If you want the very best deals at any one time, then you'll usually need to go direct with each account provider, as masonic says.....

Albermarle

 I would like to stay with HL as I have used them before and they are a major financial player while I am less sure about the others in this space as I have never really heard of them.

I have no personal experience of Active savings, apart from looking what rates are available + comments on the forum about these savings platform providers.

They seem to get good reviews on the way/speed the site operates, and they have a reasonable selection of savings accounts on offer.

Raisin seem to get complaints about poor service, money disappearing from accounts for a few days and  slow response to queries. Flagstone have an extra fee for some clients, and have a high minimum deposit. AJ Bell have a limited range on offer.

Just based on general feedback, not a scientific survey !

masonic

There's some discussion in this thread related to tax reporting. Interest earned in HL's Active Savings accounts apparently isn't reported to HMRC, so unless savers are pro-active in declaring to HMRC, this could result in them underpaying tax, which could catch up with them in the future. Perhaps this will come to the fore now that interest rates are much higher and many more will exceed the PSA.

jimjames

fizio said:

My limited research seems to suggest the main dis-advantage is a limited amount of accounts to choose from and possible fees but otherwise they are a good way to go. 
Thanks

The main disadvantage to me is the poor rates. I had a look previously and whereas I got 2.75% on my instant access account the best they offer is 1.75%. (Although that's actually better than when I took out my Santander account.)

fizio

Thanks for the feedback and I should have said I am primarily looking at fixed savings rather than income or instant access.
Ease of management is worth a small hit on the savings rate (0.1-0.2%)
I do self assessment so will have to sort out tax anyway
I will do a bit more digging but its not a bad option for me. 

SuzzleBumpkin

fizio said:

I did a quick search but couldn't find any recent discussions on savings platforms like Hargreaves/raisin. I have multiple current and savings accounts on zero-ish interest rates and am looking to get the cash into multiple decent savings accounts given the better interest rates now available. I already have a HL account so spotted their 'active savings' platform and, on the surface, it looks like a good idea for those wanting to simplify the management of looking after multiple accounts while also being able to easily switch products.
My limited research seems to suggest the main dis-advantage is a limited amount of accounts to choose from and possible fees but otherwise they are a good way to go. 
I am just looking for feedback before I go down this road - I would like to stay with HL as I have used them before and they are a major financial player while I am less sure about the others in this space as I have never really heard of them.

Thanks

I have multiple accounts with various challenger banks and one with Allica via Flagstone (platform). I tried to join Raisin at one point but found their sign up difficult and their customer service response wasn’t very helpful. I’ve noticed that the products offered by Flagstone and Raisin etc are really not competitive with the challenger banks and their interest rates tend to lag once you’ve opened your account. My best experiences have been with BLME (90 day notice/competitive rates, regularly raised) OakNorth (Same and they have an app), Al Rayan (easy access/great rate)  and DF Capital. I’ve been really happy with those banks.  ZOPA has a fantastic app but they lagged when others were increasing rates so I got fed up with them. 

I don’t have experience with Oxbury but I think they’ll be my next account as they’ve just released a 90;day at 3.4%. I hope that helps. 

Another thing to bear in mind, Premium bonds are now paying prizes at 2.2% tax free and you get a chance to win every month. I’ve actually been getting a return above 2.2% with prizes every month. I always look forward to the draw days. It’s fun, so I’ll be sticking with those as well. 

FatherTireseus

I’ve used HL Active Savings for a while now.  I find it very convenient.  Granted, the current instant access rates aren’t particularly competitive in the current market.  And the range of savings providers obviously doesn’t cover the whole of the market.  But occasionally they do have rates which are at least as competitive as anything on the market.  It’s very easy to invest and I quite like have savings in one place.  (As one gets older, the prospect of minimising the number of financial institutions my executors might need to contact has a growing appeal….).

interest is paid into the ‘cash hub’ (effectively a holding account) and isn’t compounded, if the duration is more than one year.  Some providers don’t pay interest annually on longer term bonds and pay it all on maturity.  But overall when you get to know its quirks, I find it a very useful savings tool.

Individual savers don’t get charged any fees.  I believe HL charge the banks a fee for raising the money and presumably they’re happy to pay it as they don’t have admin costs of dealing with customers directly, such as maintaining accounts, providing statements, or dealing with customer queries directly. 

ChilliBob

As above HL does work pretty well, however, because of rates I have much less in there now than I did. 

When rates were really low just under 2 years ago it worked well - it had some higher rates and some equivalent rates, now, less so.

Shame, as the idea is so much more convenient and quick!