Rainy-day pot

Investment wrappers

Raindrop is developing a rainy-day pot which is modelled on the ‘sidecar’ savings structure (also read about NEST’s sidecar savings trial here).

The sidecar structure works by having contributions split between regular pension contributions and an emergency savings account; once this savings account is ‘topped up’ to a pre-determined cap level all further contributions are automatically funnelled to the pension pot.

Customers can withdraw from the rainy-day pot/sidecar at any point; when this happens, further contributions are again split between the pension pot and the savings account until the cap on the savings account is reached once again.

Didn't answer your question?
Speak to our team