St James Palace - private bank??

welorac

Hi
I'm about to retire and am considering putting my savings into St James Palace (I think it is a private bank??). I'm told their current account offers a high interst rate, as does their savings accounts. Does anyone know anything that would inform my decision-making please? Any warnings, etc??

Welorac

Stompa

Assuming you mean this lot:

http://www.sjpb.co.uk/importantinfo/product_rates.asp

then their current account rate doesn't appear to be very high.

dunstonh

If you are considering using a private bank then it suggests the amounts involved are higher than typical. If so, remember that interest earned on unwrapped savings accounts is treated as income towards the age allowance reduction limit (for over 65s).

Ian_W

welorac wrote: »

Hi
I'm about to retire and am considering putting my savings into St James Palace (I think it is a private bank??). I'm told their current account offers a high interst rate, as does their savings accounts. Does anyone know anything that would inform my decision-making please? Any warnings, etc??

No warnings but St James's PLACE isn't a private banks as such ...
St. James's Place Bank is a division of Bank of Scotland plc. The Halifax and the Bank of Scotland joined in September 2001 to form a new banking group called HBOS.
Their Isaver at 6.4% gross is OK but I'm sure you'll find better if you try moneyfacts or similar sites, their cash ISA at 5.1% is very poor IMO.
Any reason specifically to chose SJP, not by any chance a recommendation of one of their "IFAs"?

dunstonh

Any reason specifically to chose SJP, not by any chance a recommendation of one of their "IFAs"?

Ian emphasised the "IFA" bit as they dont have IFAs but have been known to market themselves as such.

welorac

Hi

Oops, I did mean Place, not Palace, sorry about the typo.

Thanks for the useful and informed replies.

Yes, I have used a particular financial advisor for many years. He was with the Pru then Zurich and he's now with SJP. I have my pension lump sums to invest and various little pots of carpet-bagging payouts I've accumulated over the last 15 years. I am a married female and currently a high rate tax payer of average thriftiness and riskiness, but which is reducing as the years move by. My husband has very little pension provision. As I'll be 60 in Dec, I'm considering when and how to start with my next chapter in life. I've had a Barclays account for about 30 years - it pays no interest in reality and the inconvenience of the 'Pinsentry' device system is the last straw for me.

I'll explore 'moneyfacts' as you suggest. Do you think the HBOS' situation willl affect SJP?

Carole

Cook_County

SJP are 100% tied agents if I recall & therefore are never capable of looking at the whole of market.

Their model I have been told is 100% commission driven.

I would recommend a full IFA in most cases.

dunstonh

He was with the Pru then Zurich and he's now with SJP.

Your sales rep (as he wont be able to be called adviser under proposed FSA rules) has gone from one sales force to another. Pru closed down their salesforce, Zurich closed down the Allied Dunbar salesforce and SJP picked many of them up. He may be a very nice person but he is not independent and very soon wont be classed as a real adviser (although most of us know tied salesforces are not real advisers anyway).

He is recommending SJP's account as he gets paid for doing so.

Their model I have been told is 100% commission driven.

Think of it as a modern day Allied Crowbar.