The businesses taking the stress out of Sterling.
One of the problems of having too much cash, for businesses and individuals, is not having anywhere to safely put it.
With bank deposits only protected up to £85,000 the cash-rich are left opening accounts at multiple banks just in order to keep their money safe, let alone the headache of trying to move cash around to get the best interest rates.
Enter businesses like Flagstone and Octopus Cash, which specialise in moving money between dozens of banks with hundreds of accounts in order to keep cash safe and maximise returns.
Flagstone this morning revealed it’s closed a £11m funding round from backers including Kindred Capital, Moneysupermarket Group plc, VentureFounders and a number of angel investors.
“We are now well‐positioned to expand our business and provide more clients with a simple way to maximise the interest income on their cash and at the same time become an increasingly valuable funding partner to our banks,” said Simon Merchant, Flagstone’s co-founder and co-managing partner.
The company, which has been operating since 2013, has transferred more than £3bn in deposits into the 550 deposit accounts and 30 banks listed on its platform.
For customers, the account switching and movement going on behind the scenes is all handled by Flagstone, which currently advertises rates of 2% interest on 6-month fixed individual accounts, and 1.85% on 6-month fixes for business customers.
Flagstone has also signed exclusive partnerships with the likes of St. James’s Place, Quilter Cheviot and Tilney Group to be their cash deposit platform.