Why savings platforms still pay off for big savers

Why Savings Platforms Still Pay Off for Big Savers

Cash platforms initially emerged as a simple solution for savers to distribute large sums of money across multiple savings accounts. This method helped maximize interest earnings and ensured protection under deposit insurance limits.

Increased Bank Deposit Protection

Recently, the insured amount per depositor has risen to $120,000, offering greater security if a bank fails. This increase means savers can now keep larger sums protected within a single bank account without the need to split funds.

"Savers are now protected up to $120,000 if their bank fails."

Are Savings Platforms Becoming Obsolete?

Despite the higher insurance coverage, savings platforms still provide benefits for those with deposits exceeding this new limit. By spreading money over several banks, savers mitigate risk beyond the insured amount and may access higher interest rates offered by various institutions.

When Savings Platforms Make Sense

Deposits larger than $120,000 per bank
Seeking the highest possible interest rates
Preferring diversified banking relationships to reduce risk

Platforms simplify managing multiple accounts, preventing the hassle of dealing directly with several banks.

Savings platforms remain valuable for savers with balances above insurance thresholds, offering risk diversification and potential better returns even after the deposit insurance increase.

This is Money on MSN — 2025-11-28