Octopus Investments is teaming up with UK challenger banks on a tech-enabled one-year savings account that promises to double the returns offered by the high street big boys.
The product, developed by Octopus Labs, offers customers looking to deposit £50,000 or more into a one-year fixed term account a rate of one per cent - nearly twice the ‘high street’ average of 0.55%.
The company is working with a group of challenger banks - including Cambridge & Counties and OakNorth - to boost the amount savers can deposit.
The FSCS limit for deposits is £85,000 but by using technology to automatically spread money between up to three banks at the best possible rate, Octopus is offering savers the chance to throw in up to £255,000 with full cover.
Sam Handfield-Jones, Octopus Cash, says: "The UK’s savers have £145bn 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. 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."