Octopus Labs, the innovation and product development arm of Octopus Investments, has teamed up with a number of British challenger banks to offer tech-enabled savings account – Octopus Cash, which will give customers nearly twice the ‘high street’ average.

Octopus Cash offers customers, who deposit £50,000 or more into a one-year fixed term account, an interest rate of over 1% as against the average high street savings rate of 0.55%.

The product will use technology to spread larger deposits across three challenger banks, though users will need to open only one Octopus Cash account.

Up to £255,000 of the money deposited will be protected under the Financial Services Compensation Scheme.

Octopus Cash director Sam Handfield-Jones said: "The UK’s savers have £145bn squirrelled away in fixed-term deposits. However, faced with the hassle of switching, fewer than one in ten of us choose to move it at the end of the term. But in today’s times of low interest rates and rising inflation, finding an easy way to get the best rate has never been more important.

"That’s why we created Octopus Cash: a simple, efficient and tech-enabled product that could let savers double their interest rate and triple their savings protection – with a third of the hassle.”

Cambridge & Counties and OakNorth Bank are some of the banks that are on the platform’s roster.