🔔 #AskAnna: How can I open multiple accounts as Power of Attorney?

Q: I am Power of Attorney for my mum who has moved into a care home, so we are selling her house. I need access to the cash but do I need to open lots of bank accounts to keep the money safe – I’m sure it’ll be tortuous!

Anna says: If you are looking to keep the money in cash, you may need to open multiple savings accounts in order to make sure it is all protected, as the Financial Services Compensation Scheme (FSCS) protects up to £85,000 per person, per banking licence for cash savings. And although you are a Power of Attorney (POA), this doesn’t mean the cash is being held in joint names – you are simply looking after it for your mum - so you can’t double up on the protection per account.

Unfortunately opening a savings account under POA can be a little more convoluted and difficult. There is certainly more administration, as you will need to supply proof of address and identification for you as the attorney, as well as your mum, and supply certified copies of the POA document itself. Plus, you will often need to apply via the post or in branch. So, opening multiple accounts can be undesirable, albeit important as you should be acting in the donor’s best interest at all times.

But there are ways to make it easier.

One effective approach is to use cash savings platforms. Using a cash savings platform, allows you to open multiple accounts without the need to apply to each one individually.  A single application onto the platform provides a single point of access allowing you to easily find competitive interest rates, move money between accounts and monitor the overall performance of your savings, without juggling multiple logins and statements - simplifying the management process and allowing you to focus more on ensuring your relative's well-being and less on the complexities of financial administration.

Some platforms (such as Raisin) will only allow you to apply as an individual – not under POA - so you need to find the right fit.  Insignis Cash, who powers our Savers Hub and Flagstone are two such platforms.

You could also consider National Savings & Investments (NS&I). Any cash deposited with NS&I is guaranteed by HMRC – not just £85,000 - so you could simply open accounts with that one provider. However, due to this unique protection, NS&I is often less competitive, so you could earn more interest elsewhere.

If you are a Power of Attorney and would like to know more, contact us to ask for a free illustration at [email protected]