Octopus Cash

Hi all

Does anyone have any experience with (or feedback on) Octopus cash ?

I appreciate that better rates might be available in single accounts elsewhere, but we have some clients whose circumstances make Octopus' offering quite compelling, but just wondered whether people had used it and how they had / are getting on.

Thanks in advance.

Comments

  • Not come across Octopus cash before.

    I've looked into managed cash solutions a few times previously, but never got much further than high level research.

    There's a couple more providers doing similar one is https://www.depositsense.co.uk/ and there's another that escapes me... I'll post back if I remember!
    Jonny (paraflex)
  • Remembered (Evernote to the rescue!): https://savingschampion.co.uk/


    Jonny (paraflex)
  • Thanks for the response and the suggestions.
  • Hi @Pedro ;

    If you're doing due diligence in this area, you may also find it useful to look at Dynamic Cash Management http://www.dcmcash.com/cash-management-for-your-clients/  

    We did some work on this a few months back and also looked at Octopus but they used quite obscure banks at the time - haven't looked at their current offering, so it may have improved. 

    Good luck with your research.
  • Thanks Navigator
    Hi @Pedro ;

    If you're doing due diligence in this area, you may also find it useful to look at Dynamic Cash Management http://www.dcmcash.com/cash-management-for-your-clients/  

    We did some work on this a few months back and also looked at Octopus but they used quite obscure banks at the time - haven't looked at their current offering, so it may have improved. 

    Good luck with your research.

  • I've just been sent a link for https://www.flagstoneim.com/wealth-advisers

    Does anyone actually use these services?

    They've always seemed like more hassle than they are worth but I'm now getting more and more involved in managing client cash so I'm open to new ideas.

  • I keep coming back to these as in principle they seem like a great idea but I've never actually implemented one. I'd not heard of flagstone before, but their proposition is probably the best I've seen to date, albeit a little pricey at £500 + 0.25% per annum. Then again, if you had to open multiple different accounts for a client to maintain FSCS protection this might work out cheaper than you doing it on a hourly rate.

    Jonny (paraflex)
  • Hi @Pedro

    Octopus Cash is a smart savings service designed to provide a better rate on cash, while maximising the amount you can protect through the Financial Services Compensation Scheme (FSCS).

    The service works by depositing the client’s cash with several challenger banks. Octopus partner with these banks as its unlikely that clients will already hold funds with these banks and they offer some of the best savings rates on the market.

    The client will hold one account with Octopus, consolidating the deposit with each bank through one single application form. Once the account is open, Octopus will deposit funds in £85,000 chunks (the maximum an individual can deposit while retaining full FSCS protection) with the partner banks, in order of highest to lowest rate (allowing for the interest earned over the term, too). If the client wishes to save more than £85,000 per bank they can, it just won’t be protected by the FSCS.

    Octopus have lots of resources to assist with the process/ recommending Octopus Cash, including sample suitability letters and an online illustrator which can be found on the website: https://octopuscash.com/adviser

  • PedroPedro Member

    Thanks @victoriabarberops

    @parawhat - Flagstone looked very good when I investigated that but certainly on the pricey side, so it might only be of worth to people with significant levels of cash.

    I also reviewed Insignis cash solutions, and this seemed like a good option too https://www.insigniscash.com/

    Of the broad conclusion I came to from the three I reviewed, it seemed Octopus were better for simpler circumstances, then Insignis, then Flagstone as amounts / complexity increased.

    However, we're also thinking that using term deposits through a platform could achieve the same outcome (assistance / better rates) than getting another party involved. There is often the same institutions used and depending on the value of the investment portfolio, the marginal platform cost could end up being lower than the 3rd party services noted above.

  • Hi @Pedro it may be worth noting that unlike other providers, Octopus Cash don't charge a subscription fee for the service, so it comes as no cost to the client.

  • parawhatparawhat Member

    UPDATE: HL have just launched their own version of this. Looks ok and rates are pretty competitive, even after HL's 0.25% cut.

    https://www.hl.co.uk/investment-services/active-savings

    Jonny (paraflex)
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