The Bank of England's monetary tightening policy has driven interest rates to decade highs, so it is no surprise that investors are holding more cash than ever.
The most recent hike brought the central bank's base rate to 4.25% and cash deposit platforms and providers have responded, with some offering rates as high as 4.58% on cash holdings.
The increase in rates has driven more providers into the market, resulting in more options, high competition, and increasing complexity around product offerings.
More options of where to invest cash increase the risk of investors simply choosing brands they are already familiar with, regardless whether it is the best choice for them.
Cash platforms solve much of this complexity by having one application process for one account. This then gives investors a variety of accounts and, depending on the platform, exclusive and market-leading rates.
Investors can then choose and switch their accounts to find the best rates, all on one platform.
Read more here on why advisers say there will continue to be a case for cash and where advisers need to look to capitalise on the cash opportunity in this exclusive research report from Flagstone.
