Saga is perhaps best known as a provider of holiday and insurance products for the over-50s market, however, it also offers a number of financial products including equity release and savings accounts. It currently serves around 130,000 customers offering an easy access savings account and Cash ISA via its partner Marcus by Goldman Sachs. Having achieved over £3.5bn in cash deposits via its existing savings range, it has expanded its offering, launching a savings platform, offering more choice and flexibility to its customers.
The Saga Savings Platform provides a wide choice of fixed-rate savings accounts for its customers, giving them access to around 20 providers from a single online app. The Saga Savings Platform has launched in partnership with savings platform Flagstone, giving its customers additional choice and flexibility, allowing them to easily move money from one online account to another.
In this article, we look at how the Saga Savings Platform works, the savings products it offers and how it compares to alternative savings platforms.
How does the Saga Savings Platform work?
The Saga Savings Platform allows Saga customers to easily open a number of savings accounts from different providers from a single online account. Rather than having to open a new savings account with a new provider every time there is a better rate on offer, customers can browse the platform for the best rates on offer and open a new account in a few simple clicks. The Saga Savings Platform also allows customers to easily move money from one savings account to another, simplifying the process of managing your savings.
What products does the Saga Savings Platform offer?
The Saga Savings Platform is powered by Flagstone, one of the UK's leading cash deposit platforms. Flagstone was founded in 2013 and provides its customers with access to hundreds of accounts from more than 50 banking partners. The Saga Savings Platform will initially have around 20 banking partners for its customers to choose from with products ranging from one month up to seven years.
Does the Saga Savings Platform offer the best savings rates in the UK for over 50s?
Saga provides a number of products and services to the over-50s market, however, Saga customers do not receive exclusive rates or member-only offers by using the Saga Savings Platform. While Saga customers can access a good range of savings products via the platform, there are other cash savings platforms that give access to a wider range of products so there could be better offers in the wider savings market. It is also possible that the best 'market-leading' savings products are not available via any savings platform, so it always pays to shop around to ensure you are getting the best rate.
Our best buy savings tables have the most up-to-date savings rates on the market, or alternatively, you can bookmark our article, 'The best savings accounts in the UK' which is updated weekly. However, if convenience is high on your priority list and you are not concerned with getting the very best rate on the market, then a savings platform like Saga, Raisin* or Hargreaves Lansdown Active Savings* could be a good option for you.
Is the Saga Savings Platform safe?
Money deposited in savings accounts opened via the Saga Savings Platform is held by the bank itself. This means customers do not have any credit exposure to either Flagstone or Saga and so are entitled to the protection that is offered via the Financial Services Compensation Scheme (FSCS).
FSCS protection covers money held in UK-regulated current accounts, savings accounts and credit unions. This means that if the bank, building society or credit union goes bust, money held up to the value of £85,000 per person will be covered (£170,000 for joint accounts). The FSCS limit applies per authorised firm so you would need to check each bank account to see if any of them fall within the same licence. For example, HSBC and First Direct Bank share a banking licence so only £85,000 would be covered across both accounts.
Funds in the Saga Savings Platform account are held in trust by HSBC. While Flagstone is the trustee, customers remain the full beneficial owner. This means that customers have full control over their cash at all times. Saga makes it clear that Flagstone is not a bank and does not hold your funds at any time.
Pros and cons of the Saga Savings Platform
Pros
- The service is free to use and so does not directly charge a fee
- Easy to set up an account and the service only requires a single login
- Makes the process of managing multiple savings accounts simple and stress-free
- Savings are covered under the standard FSCS rules
Cons
- While there is no fee for using the service, Flagstone - the company that runs the savings platform on behalf of Saga - does take a share of the interest paid by the bank on each deposit (up to 0.40%) which means that you could get a better interest rate if you went directly to the bank
- The service does not access the whole savings market so there may be better savings rates available if you shop around yourself
How to open a Saga Savings Platform account
There are three steps to opening a Saga savings account:
- Step 1 - Apply for a Saga Savings Platform account - Applications can be made online, by phone, email or post.
You'll need to answer a few simple questions including your name, contact details and account information. - Step 2 - Transfer your funds - In order to open a Saga Savings Platform account you'll need to transfer an initial minimum deposit of £40,000.
- Step 3 - Open savings accounts and deposit your money - Once you have transferred your money into the Saga Savings Platform account, you can browse the accounts on offer and move your money into whichever savings account you wish to open.
Saga Savings Platform alternatives
Saga is just one of a number of cash savings platforms to choose from with Hargreaves Lansdown Active Savings and Raisin being two of the most popular alternatives. Interactive Investor, a popular investment platform also offers a cash savings platform, however, as it is also provided by Flagstone, those looking for an alternative to Saga are unlikely to find many differences. We explain cash savings platforms in more detail and provide a handy comparison in our article 'Best cash and online savings platforms in the UK'.
Saga Savings Platform summary
Saga's savings platform allows customers to easily access a number of savings products from a single online platform. It could be a good option for those who are frustrated by the administration process of opening new savings accounts and perhaps those who are not necessarily concerned with getting the very best rates on the market.
It is important to note that Flagstone, the company that runs the platform on behalf of Saga, does take a share of the interest paid by the providers (up to 0.40%), but this is clearly displayed on the platform before you commit to the product. In terms of alternatives, there are other savings platforms that do not take a share of the interest, such as Hargreaves Lansdown and Raisin and of course, you could shop around for the best deals yourself. For the latest savings rates, check out our regularly updated article, 'Best savings accounts in the UK'.
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