Unique cash savings platform launched
A unique platform allowing customers to actively manage several cash savings accounts has launched.
Governor, which purports to be the only service of its kind on the UK market, will allow customers to consolidate or switch savings across a range of providers.
It also offers an ISA wrapper so savers can benefit from tax-free growth.
The one-stop savings shop estimates that by actively managing their money with Governor, UK savers with £50,000 can increase their return by up to £900 each year.
However, there are currently only four providers on board – Cambridge Building Society, Hanley Economic Building Society, Progressive Building Society and Saffron Building Society.
Governor is free to use for customers will balances over £10,000, although it charges an annual fee of £10 for balances under this amount.
Andrew Booth, chief financial officer at Governor, adds that the concept makes saving "easy" and "transparent" for savers.
"It's the only UK online savings platform where you can choose multiple providers with the benefit of choice without paperwork and hassle. It's quite radical and a new type of competitor to retail banks."
Booth adds that while only four building societies are on board so far, Governor is in talks with a further eight and by the end of the summer he hopes around 20 providers will offer their products through the site.
Dennis Hall, financial adviser at Yellowtail Financial Planning, thinks the concept is a good one, but not such a great idea in practice.
"It is relatively simple to beat these rates by going to a price comparison website and if you're comfortable with internet banking then you'll not have much trouble shifting your money around," he says.
"Unless Governor can sign up some bigger players and perhaps get some exclusive deals to help promote the service, I'm not sure it'll take off. We know that no matter how easy it is, the vast majority of savers cannot be that bothered to chase the best rates."
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