Octopus Labs has launched Octopus Cash, a one-year savings account that claims to uncover interest rates that are “nearly twice the ‘high street’ average.”
A quick trip to their website shows a description:
“Octopus Cash helps you find savings rates that beat the high street – with no hassle, and no risk. Just open one account with us, and we’ll spread your money across smaller banks that offer some of the best rates around. It’s like the savings account you know and trust – only with better interest.”
So how do they do it?
Octopus explains they have enlisted a roster of challenger banks, including Cambridge & Counties and OakNorth Bank. They then seek out the best rates to deliver better returns. The company states that with Octopus Cash, savers can deposit up to £255,000 while still enjoying full FSCS cover. The product offers those looking to deposit £50,000 or more into a one-year fixed term account a rate of more than 1% which is “nearly twice the ‘high street’ average of 0.55%.” Although the money may be allocated to up to three banks, savers will only need to open one single Octopus Cash account. The product’s algorithm will allocate cash to the banks.
“The UK’s savers have £145 billion squirrelled away in fixed-term deposits. However, faced with the hassle of switching, fewer than one in ten of us choose to move it at the end of the term,” says Sam Handfield-Jones of Octopus Cash. “But in today’s times of low interest rates and rising inflation, finding an easy way to get the best rate has never been more important. That’s why we created Octopus Cash: a simple, efficient and tech-enabled product that could let savers double their interest rate and triple their savings protection – with a third of the hassle. Saving just got a whole lot smarter.”
Part of the Octopus group, Octopus Labs seeks to create tech-enabled financial solutions for the mainstream market.
