Moneyhub has supported the launch of a Cash ISA on Paragon Bank's Spring savings app, enabling automated transfers from current accounts.
Spring launched a year ago and has passed GBP 1 billion in customer deposits. The Cash ISA is the app's latest product addition and uses Moneyhub's platform to let customers move money directly from their current accounts into the tax-free savings product.
Spring connects to Moneyhub's API-first platform, which allows Cash ISA customers to deposit funds and view their external current account balance within the app. According to the companies, this differs from traditional Cash ISAs, which typically depend on manual transfers or standing orders and do not offer visibility of a customer's day-to-day finances. Through the Moneyhub integration, savers can transfer money based on their current account balance in real time, without needing to leave the Spring app.
In addition, Paragon Bank stated that most deposits into Spring have been initiated through Moneyhub's payment technology, and that daily transaction volumes have doubled month-on-month since launch.
Market context
The launch is positioned against data cited by the companies describing an estimated 6.4 million UK current account holders, referred to in the release as ‘current account coasters’, who leave GBP 10.000 or more in current accounts that earn no interest. Collectively, the companies say this amounts to GBP 227 billion held in low or non-interest-bearing accounts. The Cash ISA is framed as an attempt to address this by simplifying the process of moving idle funds into a tax-free savings product.
The move also reflects a wider trend of banks and savings providers embedding open banking payment infrastructure into consumer-facing apps, allowing A2A transfers without card rails or manual input, an approach that has gained traction across the UK savings and current account market since the introduction of open banking regulation.
Guy Simmonds, Head of Digital Proposition at Paragon Bank, said the partnership with Moneyhub had been central to the development of Spring, describing the Cash ISA as a product customers had requested and a step in Paragon's wider digitalisation strategy.
Furthermore, Dan Scholey, Chief Product Officer at Moneyhub, said the company supplies the data and payments infrastructure that allows financial institutions to add services as customer needs change, and pointed to Spring's deposit growth as an example of the model in practice.
Paragon Bank and Moneyhub said their partnership is expected to continue, with further plans to use Moneyhub's services to support additional savings functionality within Spring. No specific timeline or additional product details were disclosed.
