Octopus Investments’ cash management solution is seeing advisers seeking safe haven assets.
Octopus Cash is seeing a sustained rise in new deposits owing to the spread of coronavirus as financial advisers look for safe havens for their clients’ cash, according to a media update from the firm.
The cash management solution, part of Octopus Investments, received £10.4m of new deposits in the week commencing 16th March, a record for a single week. It helped to push the first three months of 2020 to a record quarter for the firm with £91m in new inflows and £44m in net inflows after withdrawals.
This took the platform past the milestone of £300m in cash deposited, which now stands at £302m. However, the firm says it will rise again quickly, with more than £34m of new applications currently being processed.
The average pot size increased by 26 per cent from £133,000 to £166,000. Octopus Cash allows a notice account and fixed-term deposits of between 35 days and 24 months, with top tier rates and FSCS coverage of up to £680,000 by splitting customer deposits between different partner banks, which offer £85,000 of FSCS coverage per customer, per bank.
Caroline Flagg, Head of Octopus Cash, said “In the last few of weeks we’ve seen a significant spike in the number of advisers using Octopus Cash for their clients."
“We’ve also found that some individuals and businesses hold large amounts of cash with a single bank, often several times the FSCS limit. In those cases, advisers and their clients are now keen to spread this across several banks to make sure they are covered."