You are here: Home - Saving-Banking - News -

New auto switching service for savings set to launch

0
Written by:
09/07/2019
A new service that automatically moves your cash savings between providers to get better interest rates is set to launch by the end of the year.

Kepe, from peer-to-peer platform Crowdstacker, will remove the need to manually search for, and switch to, new accounts once initial introductory rates have expired.

It will work in a similar way to auto energy switching services like Look After My Bills and Weflip, which move you whenever a cheaper gas or electricity tariff becomes available.

Customers will sign up to Kepe once, and from then on, their money will be automatically moved to different savings accounts best suited to meet their needs and offering the best rates.

Kepe will work with an initial panel of both mainstream and challenger partner banks across a range of easy access, notice, fixed term and cash ISA products.

There is no limit to how much can be saved and customers will be able to divide their money across different types of products, for example, half in easy access and the other half split among various fixed term products.

Loyalty penalty

The new service aims to bring an end to the so-called ‘loyalty penalty’, where savers are rolled onto lower rates once their initial preferential rate has come to an end.

A ‘super complaint’ lodged by Citizens Advice to the Competition and Markets Authority estimated savings customers had lost out on more than £800m since September 2018 because higher rates are only offered to attract new customers.

Research by Kepe found that despite less than one in five (19%) savers saying they are confident they are getting the best interest rate on their savings, two-thirds (66%) said they were unlikely to bother switching.

The Financial Conduct Authority (FCA) estimates that £117bn of the money held in easy access cash savings accounts, and £21bn held in cash ISAs, has been in accounts opened for more than five years.

Karteek Patel, chief executive of Crowdstacker, said: “People want better rates but they aren’t doing anything about it.  A lot of money is obviously just sat there not working as hard as it could.

“This customer inertia is owing to misplaced brand loyalty, and probably confusion caused by multiple product offerings and unclear communications.”

Kepe customers will be notified of a switch when it happens, with up to the minute information on the status of their cash available via their dashboard.

It will not take commissions from partner banks. Instead, customers will be charged a fee for money on account. No further details about price have been released, however, at launch, there will be no fees on balances up to £1,000.

The best deals will be identified using a combination of technology and human intervention.

You can pre-register for a Kepe account now at https://www.crowdstacker.com/kepe/register

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week