Savers using cash management solutions can take advantage of rising interest rates as the system is able to optimise their returns, according to Sam Handfield-Jones, head of Octopus Cash.
In a video interview with FTAdviser Mr Handfield-Jones said: "When we first launched Octopus Cash 18 months ago, rates were materially lower than where we are today and the benefit of using a cash management solution was less obvious.
"As rates rise the amount you get in absolute terms starts to grow.
"With rates rising over the coming years you will also see hesitancy and slowness in the large High Street banks to increase their rates, it will be more obvious to savers and their advisers that they can get a better deal and earn two, three, four times what they can get elsewhere by using a solution."
The cash management solution takes the 'hassle' out of opening several banks accounts, and trying to find the best rate, he said.
Octopus's cash management system puts the first £85,000 of a person's savings into the best savings rate, before looking for the next savings rate for subsequent savings. The amount of £85,000 marks the limit of protection from the Financial Services Compensation Scheme (FSCS).
Mr Handfield-Jones said: "That means you're maximising for both rate and FSCS protection."
He said the system was also designed to determine what terms people use or prefer for each type of savings account, such as 30 day notice, in just a few minutes.
melanie.tringham@ft.com
