Bondsmith launches insured deposit sweep in UK first

Bondsmith, the UK’s leading cash savings fintech, is proud to announce the launch of the country’s first FSCS-insured bank deposit sweep, bringing an innovative cash management solution to British savers. Inspired by the well-established FDIC sweep programs in the United States, Bondsmith’s new offering enhances deposit protection while optimising returns for individuals, businesses, and wealth managers.

The Bondsmith Deposit Sweep allows customers to spread their cash across multiple partner banks, ensuring that deposits remain fully covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 per institution. By automatically distributing funds, the solution provides significantly higher levels of protection than a single bank account, without customers needing to manage multiple banking relationships themselves.

‍A First for the UK Market

‍While FDIC-insured sweeps have long been a staple in the US for optimising cash security, Bondsmith is the first to bring this concept to the UK under FSCS rules. This groundbreaking solution allows UK customers to benefit from institutional-grade cash management, helping them mitigate risk, increase protection, and simplify their financial holdings.

Michael Doyle, CEO of Bondsmith, commented: “The UK’s cash savings market is long overdue for innovation. Our FSCS Deposit Sweep brings institutional cash management strategies to retail savers, businesses, and wealth managers alike. We’re making it easier than ever to protect and optimise cash holdings in a fragmented banking landscape.”

‍How It Works

• Customers deposit funds with Bondsmith’s sweep platform.
• The system automatically allocates cash across deposit accounts participating in the sweep program.
• Each deposit remains within FSCS protection limits at an individual customer level, ensuring security and peace of mind.
• Customers retain instant access to their funds, with consolidated reporting and easy management.

At launch there are 3 banks participating in the sweep, which means this one account provides up to £255,000 (£85,000 x3) of FSCS protection per customer.

Transforming the UK Savings Market

‍With the Bank of England’s interest rate environment making cash an increasingly attractive asset, Bondsmith’s FSCS Sweep provides a secure, scalable, and efficient alternative to traditional savings accounts. The launch represents another step in Bondsmith’s mission to deliver market-leading cash solutions that empower customers with greater choice and flexibility.