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As the Bank of England’s base interest rate remains relatively low, so does the average Instant Access rate. Such lack of investment opportunities can be very frustrating to avid savers and therefore makes for less motivation to move money; as a result this has given way to £589 billion in cash being held in instant access accounts earning very little returns.
Since the beginning of the COVID-19 pandemic, deposits into savings accounts have drastically increased, as compared to pre COVID numbers, signalling that many felt the need to hoard contingency cash, due to the socio-economic instability COVID restrictions caused. Unsurprisingly, Instant Access accounts became the first choice for savings deposits, being that their simple nature requires very little commitment and the money is not ‘locked in’ and therefore accessible at any time.
However, this may not be the best option available, even in this tumultuous environment there are still accounts which are offering higher than average interest rates but do not require long term commitments, these are Notice Accounts, and can range from 30 days to 120; such accounts can act as an intermediary between an Instant Access and a longer term deposit.
Even though the rates environment is still generally low, more competitive rates are emerging especially within the Notice Accounts space, with them offering, on average, 3x more than interest.
Traditionally, moving money between accounts can be long winded and time consuming, but with the use of innovative technology, this can be achieved much more quickly and easily. With the use of Akoni’s digital cash management platform, users are now able to open multiple accounts, optimising the interest rate and spreading their risk across several providers to maximise FSCS protection. This not only takes the hassle out of moving and managing the cash, but the platform also provides personalised prompts, which alerts the user of maturity and can suggest alternatives. For Financial Advisers who manage their clients cash, Akoni provides a tailored Advisor Dashboard that offers a dedicated advisor/accountant view which allows for quick and easy cash management on behalf of clients and view important portfolio data, for ongoing client engagement. Akoni also provides a white label strategy that is combined with fully featured APIs. This enables Akoni to roll out propositions for partners the same day rather than the weeks or months it can take for others within this space. Partners that can be targeted for collaboration vary from low-tech capability firms (Small Advisor firms) to partners with desire and ability to integrate (platforms, banks, etc). The technology platform allows Akoni to seamlessly serve both ends of the spectrum and everything in between. The combination of features, integration options and speed to market are a solution that provides invaluable assistance to the wealthtech industry and especially service users.
So, why should you choose Akoni to help you with your client’s cash decisions?
1) Safe and secure with the FSCS Government deposit guarantee
All deposits are held with each bank providing protection of up to £85,000 per bank, or up to £1 million for Temporary High balances.
2) Diversifying risk (spreading money across savings providers)
With the option to spread cash across several providers on the Akoni Cash Management Platform, you can diversify risk, and increase the chances of positive returns.
3) Increased returns & Better interest rates
In a climate of economic uncertainty, and with interest rates being cut across many providers, it’s not easy to find decent interest rates in a simple way. With Akoni, you can find competitive interest rates to suit your client’s specific needs.
4) Quicker, and hassle-free - no form filling
Akoni Hub provides a hassle-free cash management experience - your clients can onboard and open an account online with no fuss. Clients will only need to complete one AML/KYC process, can switch between providers, and manage their account on the Akoni Cash Management Platform in just a few clicks.
5) White label Adviser portal and tools
You have the flexibility to create a platform that works for you and your clients. Add your branding to showcase who you are through a sleek, professional cash management platform designed with you in mind.
The award-winning Akoni Cash Management Platform is already leading the way in the wealth management sector, and has partnerships with Barclays, Aldermore, Investec, Clydesdale, amongst others. The ability to white label the platform gives financial advisors flexibility to help their clients move cash depending on ever-changing macro and micro environmental factors.
Find out more about Akoni: Akoni is an award-winning UK cash platform, which provides a marketplace to financial advisors and wealth managers through a bespoke white-label offering, or off-the-shelf offering. Akoni uses innovative technology to personalise cash planning solutions for clients, and also provides a full API solution to banks and insurance clients.