Financial platform Raisin UK is offering new customers instant cashback of up to £150 when they deposit £10,000 or more into a fixed savings account. The top effective rate available through the platform is 5.3% fixed for one year with Investec Bank, although the deal comes with conditions.
How the offer works
To qualify, customers must use a promo code from Martin Lewis' Money Saving Expert (MSE) and fund an account with at least £10,000 for one year, with the cash deposited before September 30 at 11.59pm. The cashback amount depends on the size of the initial single deposit: £40 for £10,000-£24,999, £100 for £25,000-£49,999, and £150 for £50,000 or more.
MSE explains: “Open a Raisin UK account* using promo code SEP150. Open a fixed savings account with a term of at least one year and fund it with £10,000+ in a single deposit by 11:59pm on 30 September.”
Effective rates and options
According to MSE, those who qualify for the cashback can beat top direct rates with the Investec Bank 4.9% one-year fix, which calculates to an effective rate of 5.3% with £10,000 or £25,000 deposited. Alternatively, the Shawbrook Bank 4.96% two-year fix offers an effective rate of 5.15% for the same deposit amounts.
MSE notes: “You'll make the most of the offer by depositing close to the tier limits (eg, £10,000, £25,000 and £50,000), as adding more within a tier won't earn extra cashback.”
Trend of 'moneymaxxing'
Brian Byrnes, director of personal finance at Moneybox, says more people are trying to maximise interest on their savings in a trend known as 'moneymaxxing'. He told PA: “I would define moneymaxxing as trying to make sure that every pound of your income or savings is working as hard as it possibly can be for you.”
He added: “It has emerged off the back of other maxxing trends from social media which centre around optimisation, so it was just a matter of time before the maxxing trend extended over to personal finance. I don't think it's a completely new trend, as there's a longstanding tradition in the UK of people trying to make their money, particularly their savings, work hard as they possibly can.”
