SmartSave reaps the rewards of higher interest rates 

Stacks of coins increasing in size.
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SmartSave, UK digital bank Chetwood Financial‘s saving proposition, has doubled last year’s deposit milestone by reaching a total of more than £2bn in direct deposits.

Following its launch in 2019, SmartSave has seen significant growth in the past two years. In March 2023, the firm reached £1bn in direct deposits, which has now been doubled with the support of its partner Flagstone, the UK’s leading cash deposit platform

Andy Mielczarek, CEO and Founder of SmartSave, has also said that higher interest rates in the country have been a key driver in the increase of deposits. Interest rates have been a key topic of late, with the government tussling with the Bank of England, who took the decision in December to hold interest rates at 5.25%.

Mielczarek said: “The higher interest rates of the past two years have done more than curb inflation – they have provided savers with an opportunity to get more from their money. Our mission in that period has been to empower our customers to reap the greatest possible benefit and undo the damage of rampant inflation.”

“Our mission at Chetwood Financial is to offer financial products and services that put customers first. SmartSave has exceeded in this regard, offering the closest possible reflection of the base rate and leveraging our agility and flexibility to react more quickly to market conditions than our larger counterparts.”

Formed in 2023, the agreement has resulted in the combined current total of money held on deposit with SmartSave passing £2.7bn. 

The company estimates that there is £750m paid in maturation funds and an additional £800m reinvested, meaning the aggregate sum deposited directly with SmartSave has reached £3.5bn, rising to £4.5bn when factoring in the Flagstone partnership.

Mielczarek added: “We’re immensely proud to have reached this milestone, as the continued uptake of SmartSave is a testament to the value we provide to savers throughout the UK and their trust in our products. We will continue to keep the customer at the heart of our operations going forward, and hope that we can continue to support them with new products in the near future.”