Exploring Flagstone’s new fee model
All you need to know about what’s changing and why.
Though we’re changing our model, we’ll still receive the same percentage you currently pay in fees (in line with what's in your Engagement Letter). All that’s changed is the way we receive it. Our maximum share of interest will depend on the value of your Flagstone portfolio, as shown in the table (on the right). We’ll apply our share of interest to any new savings account you open, as soon as the bank confirms your first deposit. We calculate our share based on the total value of your Flagstone portfolio, on the day the bank confirms your deposit.
How does the new model impact you?
First thing’s first – you won’t pay more to access the new Flagstone platform.
This share will be the same percentage you currently pay in management fees. We'll deduct it before we feature any savings account on our platform – so the rate you see will always be the rate you receive.
For each savings account you open through Flagstone, we’ll receive a small share of the interest paid by the bank in question. This will replace your annual management fee.
The model under the microscope
Say one of our partner banks wants to add a new savings account to our platform. The Gross interest rate on that account is 4.00%. Flagstone receives 0.25% You receive a net rate of 3.75% (4.00% minus 0.25%) If you previously paid 0.25% in management fees, then our maximum share of interest will 0.25%. But it may be lower for some savings accounts. *Lower management fees apply to portfolio values above £1m.
Here’s a quick example, assuming a current management fee of 0.25%*.
Flagstone
Bank
4.00% (Gross)
3.75% (Net)
You
0.25% Share of interest
Flagstone portfolio value
Flagstone’s maximum share of interest
Up to £999,999
£1,000,000 - £2,499,999
£2,500,000 - £4,999,999
£5,000,000 - £9,999,999
£10,000,000+
0.250%
0.225%
0.200%
0.175%
0.150%
First thing’s first – you won’t pay more to access the new Flagstone platform. Though we’re changing our model, we’ll still receive the same percentage you currently pay in fees (in line with what's in your Engagement Letter). Our maximum share of interest will depend on the value of your Flagstone portfolio, as shown in the table:
Benefits of the new model
Until now, we’ve always held a portion of your funds in reserve to cover your management fees. This cash sat idle – never earning you interest. But now you won’t pay annual management fees, so there’s no need for the reserve. That means you can deposit all your funds, earn interest on every penny, and maximise your returns with the new model.
Freeing your funds
The new model’s subtle benefits
Until now, we’ve always held a portion of your funds in reserve to cover your management fees. This cash sat idle – never earning you interest. But now you won’t pay annual management fees, so there’s no need for the reserve. That means you can deposit all your funds, earn interest on every penny, and maximise your returns with the new model. We'll also return what's left of your existing fee reserve to you. You can use this to top up any of your existing savings accounts (if applicable).
It may look similar to the naked eye – but we’ve made some key changes (and a handful of sensible upgrades).
New model, new platform.
When you change model, we’ll also move you onto a new version of the Flagstone platform.
The new platform uses a new holding account. When funding your account from now on, please make sure to use the updated details. You can find these in the platform – just click your initials in the top right, and choose ‘Add Funds’. You’ll see the new details there. If you have the old details saved in your online banking app, we suggest you change them now. If you happen to send funds to the old details, we'll return those funds to you. Be aware that this could result in lost interest income.
Your new holding account details
On the new platform, we can process withdrawals under £1m within two hours. So you can access your funds even faster.
Faster withdrawals
We want to launch new features that you’ll love. Regularly. But, on our previous platform, this became increasingly difficult. Our ambitions had outstripped our technology. But with the new platform, we can bring new features to life in a fraction of the time. Which ultimately means a smoother saving experience for you.
Bringing new features to life
1.
2.
4.
Keep your cash earning interest, always, with rollovers. This lets you open a new Fixed Term savings account automatically when your existing one matures. We’ll move your cash over immediately – so it's easy to maximise your earnings.
3.
Non-stop interest
We can now process withdrawals under £1m in real time. So you can access your funds even faster.
Instant withdrawals
While our Share of Interest model will apply – so the rates you see in the platform will drop slightly – our share on these accounts will match the rate you previously paid in fees. So, in effect, there will be no change.
What about your existing savings accounts?
If you have savings accounts open with Flagstone, you won't pay any more for them under the new model.
While our Share of Interest model will apply – so the rates you see in the platform will drop slightly – our share on these accounts will match the rate you previously paid in fees. So, in effect, there will be no change.'
The platform is a blank canvas, and we’ve never been better placed to make your vision a reality. So – when you next log into Flagstone – what would you like to see? Take a minute to let us know through our Feature Letterbox. It only takes a minute. Thank you.
What should Flagstone become?
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